Ep 110 How To Use Cross Collateral In Creative Ways To Buy/Sell Real Estate.

On this episode we discuss how you can use other assets you may own as additional collateral to buy properties. For example if you have a property that a Seller is asking 20K down and is willing to carry a note, and you only have 10K but you also own a truck free and clear that's worth 30K, you can offer the Seller the title to the vehicle as cross collateral there. Or if the roll was reversed you could accept other assets as additional security on a note.

And a great way to use cross collateral as a lender is to place a trust deed or mortgage on different properties your borrower may own to secure one note. For example if you have a borrower who wants to buy a flip property and that borrower also owns a rental property, you can lend money on the subject property in first position and record a second mortgage on their rental property. This is an awesome way to get more security on your money and/or offer additional security to your lender if you're the one looking to borrow money.

And to get special access to a step by step video on how to structure creative financing offers, text CFP to our hotline at 877-409-8090 or click HERE.