New investor here. Obviously. I have read several publications on REI and am tired of sitting around dreaming. However, due to stupidity when I was younger and carefree, my credit is down the drain. As I begin, I am looking to have properties that I can rent out. My question is: What are some ways of gaining funding at the beginning to make deals with crappy credit? Look forward to any and all advice. Thanks!
Croft Segars
Howdy Croft:
I am using hard money lenders. Credit is not a concern as they are mainly looking at the property and perhaps your experience in rehab and flipping. Even with bad credit you can get keeper loans with a year or two of good credit after the bad.
Find strangers, friends, or relatives to help or be partners. This web site is a good place to start. If you find a super deal you can find the money to do the deal.
You can also just flip properties or birddog for others until you get better credit.
No one has worse credit than me and here I am doing deals. If I can do it anyone can. I an currently in Chapter 13 with my personal home loan and Chapter 7 with my RE Empire. See my success story to to see how I pulled myself up out of the ashes.
Get off the sofa and do some deals!!! This kind of talk also gets me excited about doing more deals too.
Good luck and thank you,
Ted P. Stokely Jr
Howdy yourself Ted:
Thanks for getting back with me.
You said that you are using hard money lenders. Where do you go to find them? To address the flipping/wholesaling issue. I have spoken to a few investors here in the Bham area and they are not too keen on this idea. Several have stated to me that there will soon be laws forcing anyone to hold onto the property for a whole year. Have you heard anything about this?
At this point, I just want to get started. I learn best when at first someone holds my hand (say through my first 1-2 deals) then steps back. At that point I am off. I have written to the local investors association and am awaiting response as to the next meeting. I plan on attending. I am calling every number on signs across town. Any other advice is accepted as to getting my feet wet. Feel free to call.
Thanks:
S. Croft Segars
I am also extremely new like yourself. I have not even done my first deal yet. The first one tried was a HUD home and I almost lost my $1000 deposit because something wasn’t disclosed by the real estate agent of 18 years doing HUDS.
Here is a link to some hard money lenders that I found and I also have started emailing them to find out if they do 100% funding for someone willing to do all the leg work finding flip able properties. So far two want 65% LTV’s. That will be very tough.
http://www.realestatepromo.com/money/
As I come across more, I’ll post.
Webmaster would like to note there’s a closer list here…
http://www.reiclub.com/hard-money-lenders.php :banghead:
I think the point here is posession. Once you have deed it is yours and it is collateral. You can Refi and cash out all other parties.
For the guidelines on flipping or Double escrow go to the HUD website.