Unless you are fabulously wealthy, you are going to need financial assistance with every rehab project that you are trying to put together. Luckily, your last name doesn’t have to be Rockefeller or Vanderbilt to get the funding that you’re looking for. There are creative ways to get the real estate deal closed that you might not be aware of. Whichever one you decide to use, be sure to run it by your attorney to make sure that everything is done as per the rules of your state.

You could use your IRA account to fund the deal. Just remember to put all of the money back into the account when the deal is concluded. If there’s no retirement account to draw from, ask your friends and relatives if they would like to become your partner in a real estate transaction. Show them how much of a profit the both of you can make from the rehab project, if they supply the money for the repairs and down payment. You don’t have to limit yourself to just friends and relatives, you can also ask your co-workers and other investors. To get the funding you need, you can also borrow equity. This is when you use the equity in another property that you own by drawing up a promissory note and use it as collateral, since it is now the second mortgage.

An additional option is called “contract for deed”, which is used when the seller doesn’t have a mortgage on the property. In this scenario, you would get the deed to the house by using it as collateral and the seller takes the place of the bank. Since there is no bank involved, you won’t have the rigid requirements for financing your rehab project. You can also combine the contract for deed with a balloon payment if the seller is uneasy about having a mortgage for more than five years. A variation of the contract for deed would be something called a “land contract”. This is where you make payments to the seller and end up owning the property after a specified amount of time. With this option, you don’t get the deed until all payments are made.

There are so many financing options to choose from, that you have to look at a number of them to decide which one is right for you. Don’t forget to get legal help in structuring the deal. Not having a high enough credit score, or not having the money for the bank-required down payment is no longer a barrier to financing your next rehab project.