Sweet Success: How a Cookie Deal Crumbled into Creative Finance Mastery

In the world of real estate, the term "creative finance" often sounds like a high-stakes, complex maneuver reserved for the savviest of investors. However, what if I told you that the essence of creative finance could be distilled into something as simple, delightful, and delicious as baked goods? Yes, you read that right—baked goods. This is the story of how a seemingly ordinary discussion on creative finance turned into an extraordinary lesson on the power of innovative deal-making, all through the medium of cookies.

Recently, I had the pleasure of being invited by Soy, known as Lattes and Leases on Instagram, into her private community to demystify the concept of creative finance. The session took an unexpected yet fascinating turn, illustrating the versatility and accessibility of creative finance strategies in a way that was both enlightening and, frankly, quite delicious.

The journey into creative finance began with my first deal involving baked goods. This wasn't just any transaction; it was an epiphany moment for everyone involved. As I navigated the intricacies of seller finance and subject-to agreements with the community, the real breakthrough came when we decided to apply these concepts to a real-life scenario involving cookies.

Here's how it unfolded: Bri, a talented baker, agreed to sell me 100 cookies for $200. The deal was structured as a seller finance agreement, where Bri, having no debt on the cookies, created a new debt between us. This playful yet practical example served as the perfect backdrop to explore key terms like purchase price, down payment, interest rate, and length of time—all integral components of a creative finance deal.

The negotiation took a delightful turn when Autumn, Bri's daughter, stepped in as the wholesaler. She brokered the deal between her mother and me, ensuring that the cookies would be sold at a profit. The agreement was simple: Autumn would buy the cookies from Bri and sell them to me for $250, making a neat $50 profit for her efforts.

This cookie transaction exemplified the essence of creative finance: flexibility, negotiation, and the ability to create win-win situations for all parties involved. It demonstrated that, at its core, creative finance is about structuring deals that meet the needs and objectives of each party, whether you're dealing with real estate properties or baked goods.

What this experience teaches us is that creative finance is not just for the elite investors or those with a deep understanding of real estate jargon. It's a tool that can be utilized by anyone willing to think outside the box and apply basic principles to any transaction, big or small.

The key takeaway from our cookie deal was the realization that the principles of creative finance are universally applicable, transcending the boundaries of traditional real estate transactions.

As we wrapped up our session, the community was abuzz with excitement and newfound understanding. The simplicity of using cookies to explain complex financial strategies was a revelation. It proved that creative finance is accessible, practical, and, above all, achievable for anyone willing to learn and apply its principles.

In conclusion, the world of creative finance is as vast and varied as the array of cookies in a bakery. Whether you're negotiating multi-million dollar real estate deals or trading baked goods, the fundamentals remain the same: understand the needs of your counterpart, structure the deal to benefit all parties, and always be open to learning and adapting.

So, the next time you find yourself struggling to grasp the concept of creative finance, remember the cookie deal. It might just be the sweet inspiration you need to unlock your potential as a creative financier.

Let's stay connected,

PACE