Many people hesitate to invest in real estate out of F.E.A.R. (false evidence appearing real.) When giving excuses like “I don’t have any money,” or “my credit isn’t perfect,” it is important to remember that thousands of people have started from your position and have become very successful real estate investors. If you are unwilling to let excuses such as these prevent you from creating passive income streams to build wealth for you and your family, listen closely. There are 5 unconventional ways of investment property financing that you can use to get started now!

Many wealthy individuals are willing to privately lend to trustworthy investors who are likely to earn them 10-15%, rather than lose money in the stock market. Although the interest rates for private lending are generally higher, they are secured by the property you purchase (this is because if you stop making payments and the home is foreclosed on, they take over for a higher return.) There are many benefits to this type of lending but you will need to network and establish some trustworthiness before you start asking people for their money, so it can be slightly more time consuming.

Hard money lending also has higher interest rates and requires an “exit strategy” (such as selling the property or refinancing), but is ideal for people with less than perfect credit. This is because the property you purchase is used as collateral for the loan. However, you may have to come up with a portion of the money for a deal because lenders typically only lend 65% of the loan-to-value.

One of the most common unconventional financing options is partnering. This method is perfect for people who feel they are in a “unique situation.” If you don’t have money or credit, find someone who doesn’t have time. The most useful assets that investors can bring to a partnership are contacts, knowledge, time, credit, and money. If you only have some of these qualities find someone with the rest, who is lacking the assets you possess.

Owner financing is widely available in real estate regardless of your credit score. In this method the seller takes payments, instead of a “lump sum” from you or your lender. Seller financing has become even more common as a result of stricter lending requirements due to the housing crisis.

Another outcome of the recent mortgage crisis is that lenders have begun to create special private loan programs for private note investors. These programs get to follow their own rules because investors our investing for themselves and don’t plan to sell the notes on secondary markets.

Regardless of what method you use to finance your property, it is important to get started in real estate investing now, while homes are “on sale.” Don’t let this opportunity pass- you don’t want to look back in 20 years wishing you had done something in 2010 to improve your financial situation!