Ok, In Oct. I had my credit checked at a car dealership and it was all good, but we were hesitant to do it in the first place because of the credit score. The car salesman there said that you could have your credit pulled 30 times in a month before it did anything to your credit. Well we were stupid and believed it so, after that our credit dropped from 650 to 490. Then in January I got into a motorcycle and was in the hospital from the 14th to the very end of Feb, and couldnt work which made me late for my CC bill, Fingerhut, and A small Walmart bill. So, my credit is about 435 now, and I have really been wanting to start doing real estate. Thanks for all your input
With that credit score you are going to find it extremely difficult to obtain any financing. You need to concentrate on fixing your situation.
There are lenders out there that will accept your score. However, the parameters will be no where near what you need.
Twisted - the 400s is pretty low. I agree mdhaas…give yourself about 1 year or so to rebuild your credit by paying your bills on time and making sure you are not maxed on any of your credit lines. This should be health for your credit score and then dive in RE. In the meantime maybe you can do something that doesn’t require financing like birddogging?
Twisted - you definitely need to work on your credit first.
I’d suggest start reading these forums:
It takes a lot of work but if you’re serious about it, you can do it.
Paying your bills on time is important but there are also other factors involved.
My fico score jumped 100 points for 5-6 months.
Twisted - Sounds like we are in a similar situation as far as credit goes. What I’ve been focusing on is no/low money down deals? Actually, let me clearify. It’s more like no/low money down for ME deals. I try to partner up with those with good credit or have financing available to close the deals I put together. They make more on the deals then I do and I do all the work but I couldn’t do it without them. Its a win-win all around. Local REI clubs are great for finding these types of backers.
Partnering can also work with sellers. Some may be willing to lease option properties or even carry back a mortgage for you. Especially if they are very motivated to sell for one reason or another and don’t need all the cash from the sell up front.
Hope this helps.
-Allen
Hi,
I’m jumping in! :-* I don’t have good credit either. One thing that I have learned is to never ever get in this situation again. Credit seems to affect your whole universe :-[. I am working on building my score up. Anyway, how does that lease option or mortgage carry work. I have talked to an owner. I want the property but having a time getting investors in on it. I don’t think there is enought profit in it for them, but I will be happy with $5,000 at this point and time.
Thanks in advance.
Andrea
That’s exactly what I’m saying (happy with 5k thing). I would be happy just to gain experience with real estate and stuff like that. I’ve been thinking about going to work with someone I got in contact with here in my city that has been doing this for about 10 years. He would be able to show me a great deal of stuff.
I am very interested in doing the partnership idea. If you could maybe post here about how you go about convincing/finding investors willing to partner that would be great! Anyways, thank you for all your reaplies guys. I really appreciate it!
Twisted,
Your best bet is definetly learning from another investor until your credit comes back around. Depending on the amount of knowledge in REI and/or skills you have see what you can work out with the investor (you don’t necessarily have to “learn” for free). For example: Offer to be a “bird-dog” and have him teach you about the contracts and how to talk to a seller. Eventually all they’ll be needed for is to “close the deal” if it starts to fall through or you can’t answer a question. Depending on how much your willing to work and what it is your willing to learn I guarantee that a respectable investor will offer at LEAST a percentage of his profits even while your learning. Good Luck!