An Investor With Bad Credit
I am trying to get into real estate investing but is currently faced with the "Bad Credit" road block. I have done a lot of reading and research on the different ways to be creative with financing. Now my question is, what can I do, even with my bad credit, to get started while I am trying ti improve my credit score? HELP!!!!!!!!!!
You can become a wholesaler, do subject 2, lease option or owner finance just to name a few directions.
Sounds like what you are reading is not covering much of the creative side of real estate.
John's sub 2 course would be a great direction to go.
[addsig]
Hey thanks. It's just that there is so much infomation that filtering the right choices can be somewhat intimidating. Thanks for your help.
What is "wholesaling" and "sub 2"?
Thanks.
I am a also a newbie, I think your best is lease option, and contract filps. 90% of the time you dont need no financing, no credit check, nothing, no money, isn't that beautiful.
wholesaling is the same as flipping contracts.
You can find a junker property, can get it under contract for $40k, sell your contract to a rehabber for $45k, who brings their own cash to the deal, and you get paid $5k, and the seller gets paid the $40k you had contracted with them. Assignment fees usually vary from $2k-$10k, though could be higher for more expensive property, like commercial rehabs.
Sub2 aka purchasing property subject to the existing liens on the property (meaning the loan that the seller got on it to originally buy) is a great strategy, though often times I believe these very motivated sellers will be late on their payments, and you will have to cure to bring current, before taking the mortgage and property over. Note that this is not "assuming a loan".
John Locke really is the guy for this subject, so you may want to invest in his course. I have only seen great things said about it, and his follow up and mentoring after you purchase.
Whatever you do, stick around on these boards, and incessantly ask questions. Although flipping contracts, aka contract assignment, sounds pretty simple, you need to make very sure that you know how your fee will be treated on the settlement statement, etc....so many details to pay attention to, and real estate is always state specific, so learn your contracts, ask questions, and much luck to you!
Best, Dave