I am a newbie so take it easy on me please… First let me give you some insight on myself, HA HA HA. I have a 550 midscore and want to go no doc, no income, no nothing. Is this possible anywhere? I see and read about no money no credit but is it true???
My question is am I supposed to figure out where I am going to get the financing from, before or after I write a contract on a house?
Am I supposed to find a house work the numbers and then look for someone who will loan me the money? I was told that if I had the property under contract that I could use it for my leverage, is that true?
Because I have no assets, no nothing. I am trying to make this happen from thin air and become one of those rags to hopefully riches people.
You can laugh now if you want!!! :biggrin. I really am serious though, I want to see if I am able to do this.
If I do put a house under contract what type of wiggle clauses can I put in there to get me out if I can’t make it happen??? :banghead.
Give me some examples of exactly what wiggle clauses are? Also what type of upfront costs are there going to be if I do put a contract on the house? I can get a hold of some money $500 bucks max.
Ok, you can laugh again if you want!!! :flush
Let me know what you think about my situation. If I should stay or go??
Thanks
Well - first off, what are you looking to do? Are you wanting to wholesale, fix and flip, landlord, lease option?
Honestly, no credit and no money really can be a hindrance to real estate. Especially now. But - it depends on what you are looking to do.
You could do owner financing, or wholesaling.
You could also start with some bird dogging to bring in money without the risk, and build your funds. That will help you learn the business as well. Also - work to raise that credit score.
When you have good credit - a lot more doors will open for you funding wise.
Very good info :biggrin. I am looking to wholesale properties only. I want to find the junkers and sell them right away. I am sorry for not being specific on that. I need to know how to I actually get the property? Do I just say I have the money in hopes that I will get someone to buy it in a short period of time (before close of course!!). This is what I do not understand. What do I put down on the property? I also just started birddogging for an investment company so maybe I should just follow what you said and just do that for a while. In the case of credit, I think i’m shot because I do have a 550 now but I am also going to file the big one :flush soon unless I can get out of the money mess and get in gear :anon
Build your buyers list first, so that when you have a good property, it will close fast. You don’t want to tie up a home owner’s property without having a buyer ready.
Try calling those “I buy houses” signs and find out what type of houses they are looking for.
Also - go to your nearest REI meeting to network with other investors.
Always have your money in place before you sign a deal. I can not tell you how many times people come to me with great deals to finance and I can’t do the financing for them.
Would you buy a car without having your financing first? NO!!!
It puts you in a position of strength. I can easily tell the difference of someone who has financing and who doesn’t when they bring an offer to me on a house I am selling.
I filed the big one, and it was a BIG HELP!
BK is a business decision and should never be an emotional one.
My credit has never looked better, and its truly a clean start.
1 year out I am even able to qualify for a house. The thing to do is sit down, and write down EVERY mistake that led you into your position now. I know it seems a bit over the top but its well worth it, as you will learn about your finances and your thinking.
The next step is learn how to build your credit and protect it.
In the mean time you should learn all about Wholesale, and bird dogging while you recover from your BK. As it will give you a great understanding of investing, and help you network in your local investment club.
Also make sure you Join your local club!!! I can not stress this enough, you need education from experienced people, and you also need to be around like minded people. As you will learn in the years to come most people aren’t rich because they can’t be…its because they don’t want to be.
Good luck to you and enjoy the journey.
Also remember build wealth not just riches.