Today is another AMA episode – “Ask Me Anything”. Tom Blake asks,

“First things first, your podcast is fantastic.

What are your two favorite creative transaction strategies that maximize the likelihood of finding a win/win outcome between you (as purchase, partner, option holder, etc.) and owner, and why?”

Tom, this is a great question.

If you were to take a class in creative strategies, you would find that seller financing probably tops the list of strategies that are routinely taught in the world of investing. There is no doubt that seller financing is a powerful and effective tool.

But before discussing a strategy, I want to get at the root of why you would want to employ a particular strategy.

Many rookie investors have not mastered the art, legalities and the science of raising capital. So they resort to seller financing because it makes the problem of raising capital and qualifying for bank financing much easier. If a creative strategy happens to save us the effort of raising capital, then great. But that’s not a major factor in our decision making.

When we look to get creative it’s because we’re trying to solve a problem, specifically in the area of risk. On today’s show I lead you through a thought process of how we approach creative transactions.


Host: Victor Menasce