Since the housing crisis several years ago, these institutions have made their requirements and guidelines too strict for many people to secure financing through these traditional sources. To learn more, click on this presentation by Roman Temkin.

1. 4 Ways to Secure Financing for Your Real
Estate Project
Real estate is a very lucrative field. There is great potential for amazing profit margins and
incredible real estate deals. However, one of the major problems that many people have who
attempt to participate in the real estate arena is securing financing for their real estate projects
Many people cannot utilize personal funds to complete a real estate transaction. The main reason
is because they usually do not have enough money to complete the transaction. The average real
estate transaction can be cost prohibitive. In addition, many people who may have the money
necessary to complete a real estate transaction do not want to use their own money to complete
the deal.
Traditional Outside Financing Sources
Most people either prefer or need outside financing to complete real estate transactions. The
problem for many people is where and how to find these outside funding sources? Traditional

2. sources such as banks, credit unions, and mortgage companies have become too problematic for
numerous people.
Since the housing crisis several years ago, these institutions have made their requirements and
guidelines too strict for many people to secure financing through these traditional sources.
Typically the current requirements list items such as a certain credit score to qualify, a minimum
down payment amount, and complete disclosure of income related information. In addition, the
time needed to complete the entire process can take longer than the time provided to complete a
real estate deal.
Popular Non-Traditional Financing Sources
For these reasons along with several other reasons, many people have started to look beyond
traditional sources regarding financing for real estate deals. Some of the most popular non-
traditional financing sources currently available to people interested in securing financing for
real estate deals include:
1. Owner Financing — This is financing that is provided by the owner of the real estate property
through agreed payment terms.
2. Subject To Financing — This is financing accomplished when the buyer agrees to carry the
current financing already provided regarding the real estate property.
3. Seller Second Financing — This is financing accomplished when the seller agrees to carry a
note concerning the real estate property for a defined time period. Typically it is for the amount
needed for the down payment.
4. Lease Option Financing — This is financing that is provided by the owner to allow the buyer
to move into the property and purchase the property at a later date. A portion of the lease
payment can be used as a partial monthly payment towards the purchase of the property.
When many people think about securing financing for a real estate project, they usually think
about traditional sources for financing such as banks, credit unions, and mortgage companies.
However, there are a variety of other ways to secure financing for real estate projects.
Roman Temkin is a real estate developer from NYC.