He explains:

“Real estate investors are using creative financing principles like never before to purchase real estate. However, those who attempt to use private or hard-money lenders are finding those avenues to be costly options in the current financial climate. “Conventional financing and private money sources are difficult for investors to access in this market,” Carleton affirms. “I encourage the government to provide incentives for investors to not only rehab foreclosed property but, more importantly, for lenders to develop financing programs tailored toward investors’ needs. Under current market conditions, creative financing is the single most effective means of funding any real estate transaction. But, the government needs to work toward giving investors a myriad of tools to use in putting together real estate deals.“

If investors like Sheets have their way, perhaps Congress will pass the current $15,000 tax credit proposed by House Republicans. Although the $7,500 credit is appealing to first-time buyers, many believe that a $15,000 housing credit for any purchaser would be an effective way to jump-start the economy.

See Also:

Revival of the $15,000 Home Buyer Tax Credit?

Originally, the idea was to give anyone a $15,000 tax credit for purchasing an owner-occupied residence. However, that plan was replaced by the current law which awards a tax credit of up to $7,500 for first-time home buyers only.

The attempt to revive the $15,000 tax credit is being carried out by House Republicans.

The Washington Post reports:

“Under the proposal, borrowers refinancing their mortgage would be eligible for $5,000 to help cover closing costs or to reduce their principal balance. The plan also revives a $15,000 home buyer tax credit proposal that Republicans pushed last year. This time, the proposal would require the borrower to have at least a 5 percent down payment. Both programs would expire in July 2010.”

So, that’s 5k to help you get into a house and an extra $15,000 at tax time. Although the minority party may not have a good chance of putting this bill through, it would be a helpful boost to potential homeowners, including those looking for creative financing solutions.

Can you imagine how useful this law could be for borrowers looking to purchase one of those $30,000 condos in Vegas? What a deal!

See Also:

Creative Re-Financing: Obama’s New Foreclosure Plan

Buying a Home on a Credit Card