I have been surfing the net looking for information on real estate whenI came to this site. How I ended here I am not sure, but here I am. I am thinking of getting into the short sale aspect of the real estate business. My credit history is shot (420) and I have about $360.00 in the bank. I have seen ads for SS programs that claim this can be done with no money down and no credit. I am very nervous about getting scammed into buying a program that makes these claims.
My questions are these: 1) Will my credit scores have to be brought up in order for me to be eligible for purchase? 2) Can I get into this side of real estate investing with no money up front? Should I be looking further into other avenues of real estate investing that don’t require good credit and little or no money down. I am open to any and all suggestions.
With a 420 credit score and no cash reserves, the reality is that a short sale is going to be all but impossible unless you find a viable partner.
You may want to look into a more feasible investing technique for someone in your position, (not unusual, by the way), such as options.
Technically, you can do all sorts of real estate deals w/ no money down and no credit verification. I’m not sure short sales is the way you want to start. I’d go with the other suggestions of bird-dogging or learning how to wholesale. Good luck!
Another way to go is hard money loan, but even those lenders are getting strict. It used to be that they would lend on equity only. Now they want you to put some of your own money.
I agree, birdogging, partner and improving credit.
:cool what about getting into note brokering ?? HEY all you have to do is find some one who has sold there home and made a note on it as in owner financing THEN find a note person as in a buyer and get all the information they request you to and you get paid when it closes
YOU do not need alot of money to start in this and credit is not even looked at !!! AS well you can make a nice bit of money doing this to get started or just for extra money !!
I as in my company work in preforeclousers and on the other side of the coin set up owner financing and sell notes we make or find and we make 80 to 90 k a year doing so !!
just a thought to get your foot in the door to real estate
Ive been doing a lot of reading myself , I feel an easy and safe way to get in to real estate is bulk preconstuction.You only put 10% down that is put in a secure 3rd party escrow account.The returns are targeted at 40%-90%.most deals are completed in 18-30mos.
Good afternoon,
You have ended up at a great spot here. Look into double closings and and/or assigns. Did two this month, netted 34k, no money out of pocket, no credit check,no coffee and almost out of gas in the truck !
I assigned both contracts to cash buyers. Abird dog brought one of the buyers and a Realtor brought the other. Both closing and assigned in escrow.
Darin
With where you are right now. Do NOT get involved in short sales and other aspects of the business. You will lose your 360$ faster than fire burns through dry paper.
Take that 360$, park it where it is and start doing the following:
Go to the wholesaling section and read that forum fowards and backwards.
Drive around lower priced neighborhoods and look around for vacant / ugly / boarded up / abandoned properties.
take pictures and write down address of all the properties.
find the owner. Go to county records or whereever your state keeps the tax rolls of each property.
Negotiate deal with the seller once you meet them. Buy them at 70% of market value minus repairs.
flip the contract to an investor for a few thousand and move on to the next deal.
The most you pay is 50$ for a few weeks worth of gas and a couple of dollars for real estate contract.
Wholesaling junkers is essentially that.
I know there’s a lot involved with each step I outlined, but that should literally be your starting point.
Preconstruction has to be about the riskiest and most foolish thing to be in when the market is falling like it is. You know how many people have posted on this board about losing their shirts in preconstruction? Gone are the days when a blind person with a full lobodomy could do a precon deal and make 6 figures. Those days will come again but right not they are a long way off. Please do some reading here about preconstruction before you invest a dime into it. And don’t believe everything a builder or realtor tells you, they have a motivation to sell you that property ($$$).
Hello Dave,
I pay and advertise a $2000. fee. I have one bdog that has a buyers list , I gladly paid him 2k for him bringing the buyer also.
I recieved a phone call off one add yesterday, seller wants 220k, house is worth 260k before fix up. Called same Bdog with buyers list, he had told me what his buyers were looking for. He had one prequalified at 260k looking for a fixer !!! All we need is to have it put on paper before seller switches gear.
This deal will be tied up w/no money, just contract knowledge and timing.
You can do this too , So all I’ve done is run adds to buy homes and pay bird dogs. Both groups call and I put the product and people together. Sounds simple but there is a lot of contract and Market Knowledge to be learned. Keep working towards your NewLife, Darin
I did a SS last year with bad credit & <$100 in my bank account. My no. 1 exit strategy was wholesale via double close. I got a pre-qualification letter from a hard money lender - there was no credit check. I got the SS approved, flipped it via double close, and made $.
The bottom line is that I made $ from being in a similar situation.