I would like to know how I can get started in investing properties to flip with bad credit…I will be filing bankruptcy soon and have made some mistakes in the past with my personal credit and want to file…I am taking classes to be a real estate agent right now and want to be able to invest in the future…Does anyone have any ideas they would like to share with a beginner. Any advice would be appreciated. Would Like to know my options.
Having a history of bankrupty should not prevent you from getting a loan for RE investment. I believe some gurus here like Tedjr had less-than-perfect credit at one point but still manage to hold lots and lots of properties.
You need to fix your cash and credit problems before starting, you can’t use REI as a way to bail yourself out.
But Rich, I saw some guy on an infomercial that said he made $50,000 the first month with no money and bad credit (working only 20 minutes a week). Are you saying that’s not the way it works?
Mike
Some investors/mentors will also partner with you on deals. You find, they fund, split 50/50.
Dee,
I hear that all the time, but what successful investor in their right mind would partner with someone who has a history of failure. Credit is a measure of trust. I certainly wouldn’t split a deal 50-50 with a newbie with bad credit. Would you? Why? It would be much cheaper and safer to simply do the deal yourself and hire someone to do the work. A birddog is certainly not worth a 50-50 split.
Mike
Well, since Im not in the position to pay off all of my debt, is that the only way out? I mean I just want to get in where I fit in. What’s the harm in That?
Nobody said anything about paying off all of your debt. If you are going to run a REI business, you will have debt. BAD DEBT and unpaid debts are the issue.
Everyone wants to be rich. Even so, only about 2% of the US population are millionaires (and I certainly would not say that millionaires are rich). The reason that only 2% of the population are millionaires is that 98% of the population is not willing to do the work that is necessary to become a millionaire.
You are not required to do anything. However, if you want to be successful in REI, there is a price to be paid.
Mike
Unless your credit is also very bad, If theres any POSSIBLE way to avoid BK, DO IT. Your credit will be screwed for years and the bk will be on your credit report for 10 (not 7) years. Thats a LONG dang time. It would be tough to get a loan for a personal residence before you were at least a couple years out of the bk, but it would be very difficult to get a loan for an investment property that you don’t plan on living in anytime soon after the bk. Then again, you COULD go hard money loan but if you have that many money problems already, you need to work on that first. I just read the best book on the planet called Secrets of the Millionaire Mind by T. Harv Eker Absolutely awesome and can help.
I think there best bet is just continuing to improve your credit over a year or two, then get into real estate. Learn everything you can about it, over those two years. AND then once your credit score goes up, try to get owner-financing for property. Owner-financing should be easier to get, especially if you are buying from another real estate investor
The worse time to start any business is when you need the money from that business and real estate is a business. Credit problems are not financial issues they are behavioral issues. You need to learn how to act your wage. My advice would be to fix your personal financial life first and then when you are stable invest in real estate. Figure out what level of lifestyle you can afford and move your lifestyle to a couple of notches below that for some time before looking to invest in real estate.