Creative finance Quiz

Which of the following is not a form of creative finance?

• Self directed IRA
  

• 
  Subject to
  

• Seller finance
  

• Lease option

A seller has a mortgage on the property. You assume the loan the seller has on said property. What is this called?

• Lease option
  

• Seller finance
  

• Subject to
  

• Hard money

In a seller finance deal, a seller holds a what when they become your bank?

• Warranty Deed

• Quit claim deed

• Promissory note

• Sole proprietorship

What are the 3 priorities of meeting with a seller for the 1st time?

• Building rapport

• Finding general information out about the business

• Asking for financials

• Asking if they’d be interested in doing creative financing

After making cold calls and talking to a seller who isn’t interested in selling right now, how long should you wait before following up?

• No more than 1 month

• 9 months

• The next day

• Touch base with them once a year

If you’re searching for a business several hours away and you cannot physically drive for dollars, what should you do instead?

• Direct mail the handwritten letters

• Nothing, you can't do anything in this situation

• Print flyers off and direct mail them

• Send printed postcards asking if they'd be interested in selling if they could get a price for their business they'd be happy with.

If you come across a business that is listed with a real estate agent, how should you handle it?

• Pass on this lead since there’s an agent involved

• Hire your own real estate agent to contact the seller’s real estate agent

• Proceed with scheduling a tour of the property just like you would with a seller

• Ask the attorney at the title company to contact the agent on your behalf

If you come across an abandoned car wash with no contact info, what should your next step be?

• Pass on this lead since there’s no info

• Try skip tracing the seller’s # with the address of the business

• Ask a real estate agent to pull the number up for you

• Drop a letter off and hope someone calls you back

When you get a traditional loan from a bank, what happens to you as a buyer?

• You must show at least 2 years of tax returns

• You must pay the seller’s taxes on the business from the previous year

• You must purchase title insurance on the business you’re interested in buying

• All of the above

If a seller is being stubborn about wanting a down payment, what are some options to give them a down payment if you don’t have the cash on hand?

• Do a HELOC

• Partner with someone

• Borrow against your 401K

• All of the above