This document discusses various forms of non-conventional financing, including seller financing, hard money lending, private investors, and joint venture partnerships. Seller financing involves the seller providing financing terms to the buyer. Hard money lending provides short-term, high-interest loans backed by property assets rather than borrower qualifications. Private investors require a return on their money through interest payments. Joint venture partnerships allow individuals to partner and share risks, resources, and expertise to finance deals together. The document provides examples of different deal structures that creatively combine these non-conventional financing options.

1. Non-conventional
Financing

2. Non-Conventional Financing
Most common forms:
① Seller Financing
② Hard Money Lending
③ Private Investor
④ Joint Venture Partner

3. Seller Financing
Ø Also called VTB or seller carryback loan
Ø Asset based loan
Ø Creativity and Negotiation a MUST!
Pros
• You don’t need to borrow the full amount from the bank
• Deal is quicker and cleaner
• Your credit and employment not a big issue
Cons
• High than bank interest rate (5-7%)
• Rare for residential

4. Variations of
Seller Financing
Allinclusive
mortgage
• Seller carries the promissory note and mortgage
for the entire balance of the home price, less
any down payment
Land
contract
• Land contracts don't pass title to the buyer, but
give the buyer "equitable title," a temporarily
shared ownership
• After the final payment the buyer gets the deed

5. Variations of
Seller Financing
Lease
Option
Sandwich
Lease
Option
• tenant pays a lump sum to owner for the
option to purchase the property in the future
• some or all of the rental payments can be
credited against the purchase price.

6. Non-Conventional Financing
Most common forms:
① Seller Financing
② Hard Money Lending
③ Private Investor
④ Joint Venture Partner

7. Hard Money Lending
Ø Asset-based lending
Ø Short-term loans
Ø Can be a second mortgage
Pros
• Backed by the value of the property, not the
value of the borrower
• Can be available quickly
Cons
• Highest interest rate of all loans
• Have lower loan-to-value (LTV) (50
-65% max) ratios than traditional loans
• High admin Fees

8. Hard Money Loans
My Deals
Ø $35,000 HELOC @ 3.5%
Ø Lent it out to two borrowers, $25,000 and $10,000 @ 12%
Ø $3,000 admin fee per deal ($1,000 to writing agent)
Ø Received back $27,000 and $13,000
Ø $4,000 in Fees in 5 weeks

9. Non-Conventional Financing
Most common forms:
① Seller Financing
② Hard Money Lending
③ Private Investor
④ Joint Venture Partner

10. Private Investor
Ø Requires a return on their money, not equity
Ø Requires YOU to be experienced, prepared and organized
Pros
• Asset based lending
Cons
• High interest rates @ 10 – 12%
• High competition

11. Non-Conventional Financing

12. Private Investor
Don’t forget the RSP Mortgage!
RESP: Registered Education Saving Plan
RRIF: Registered Retirement Income Fund
TFSA: Tax Free Savings Account
LIRA: Locked-in Retirement Account

13. Non-Conventional Financing
Most common forms:
① Seller Financing
② Hard Money Lending
③ Private Investor
④ Joint Venture Partner

14. Joint Venture Partnership
A business undertaken by two or more
individuals or companies in an effort to share
risk, use resources, time, knowledge, and
differences in expertise for a common goal

15. Joint Venture Partnership
Ø Equity share
Ø Max 50 investors in Ontario
Pros
• Unlimited deal combinations
• Leverages everyone's strengths
• Unlimited deals
Cons
• You give up equity
• More than one decision maker

16. JV Partnership
Blueprint
Generate
Leads
The Payout
& Repeat
The
Transaction
The Pitch
The Proposal

17. JV Partnership
Agreement
Ø
Ø
Ø
Ø
Ø
Ø
Initial Contributions
Responsibilities
Profit Share
Cash Calls
Exit Strategy
Early Exit options

18. JV Partnership
Contributions
Money
Knowledge
Time
Contacts
Experience
Skill

19. JV Partnership
Contributions
Partner 1
Money
Experience
Partner 2
Contacts
Knowledge
Skill
Time

20. JV Partnership
Contributions
Partner 1
Partner 2
Money
Time
Experience
Contacts
Knowledge
Skill

21. JV Partnership
Contributions
Partner 1
Money
Experience
Partner 2
Contacts
Knowledge
Skill
Time

22. JV Partnership
Contributions
Partner 1
Time
Experience
Skill
Partner 2
Money
Knowledge
Contacts

23. JV Partnership
Contributions
Partner 1
Money
Partner 2
Time
Contacts
Knowledge
Experience
Skill

24. JV Partnership
Contributions
Partner 1
Time
Experience
Partner 2
Money
Contacts
Time
Knowledge
Money
Skill

25. JV Partnership
Contributions
The Prestige Plan
1.
Knowledge
Contacts
2.
Experience
Skill
3.
Time
Money

26. Creative Financing
Deal Structures
15% Personal cash
20% Private investor
65% Seller holds note

27. Creative Financing
Deal Structures
15% Personal cash
20% Private investor
65% Mortgage

28. Creative Financing
Deal Structures
20% Personal cash
15% Private investor
65% Mortgage

29. Creative Financing
Deal Structures
20% Personal cash
15% Private investor
65% Seller holds note

30. Creative Financing
Deal Structures
10% Personal cash
90% Seller holds note

31. Is 100%
Financing Possible?
6 ways to do a “No Money Down” deal
20% Personal Income LOC
80% Mortgage

32. Is 100%
Financing Possible?
6 ways to do a “No Money Down” deal
20% Private Investor
80% Mortgage

33. Is 100%
Financing Possible?
6 ways to do a “No Money Down” deal
25% Business Partner Income LOC
25% Personal Income LOC
50% Seller holds note

34. Is 100%
Financing Possible?
6 ways to do a “No Money Down” deal
100% Mortgage

35. Is 100%
Financing Possible?
6 ways to do a “No Money Down” deal
100% Private Investor(s)

36. Is 100%
Financing Possible?
6 ways to do a “No Money Down” deal
100% JV Partner(s)

37. Four New
Financing Tools
Ø Seller Financing
Ø Hard Money Lending
Ø Private Investor
Ø Joint Venture Partner