Advanced Creative Real Estate Financing

"Advanced Creative Real Estate Financing"

by Chuck Sutherland


Tags: joint-ownership, sale-leaseback, real estate


This is the third book in the Chuck Sutherland Series. The following are my notes on his strategies:


* Sale-Leaseback - Sell the home to raise cash, but lease it back from the buyer.


* "Must Take" to Obtain Loan - sometimes the seller will be willing to provide seller financing if you agree to also take a problem property away from them.


* Property Plus Cash Equals Notes - if the seller wanted to get top dollar, but doesn't need cash, they can provide a loan in exchange for buying the property secured by another property. (Confusing... see example in the book).


* Reducing Debt by Selling a Property to a Lender- Under this method, you sell a property you have to a private lender you currently own in exchange for a loan forgiveness.


* Substitution of Collateral - If you find a private lender you enjoy working with and sell the property financed, why not move the loan to another property instead of paying it off at the sale?


* Discounted Sale with an Option to Repurchase - You buy a property below market value, but give the seller an option to repurchase at a higher price point. This increase your return if they repurchase or gives you a great deal on the property if they don't. (See the book for two interesting examples.)


* Joint-Ownership - Also called Syndication. We learned all about this in the Principles of Syndication by Samuel Freshmen.


Chuck's website is I believe he does consulting work.


Biggest Takeaway: The Discounted Sale with an Option to Repurchase method could be a great way to help out distressed home owners and make a profit if you have cash to invest. You could buy their house at a discount without a credit check, give them some cash to get caught up, lease the house back to them, and give them an option to repurchase above your price at a point that would give a good return. They will then have several years to exercise this option (assuming they pay the lease) once they get their credit back to acceptable levels to get a bank loan.


Casey Richards

Rutland, Vermont

April 19th, 2018


In my spare time I also read Presidential Biographies. If you want to checkout my summaries of these books, visit the website


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