Getting My Feet Wet!

Hello and I hope everyone is in great spirits. I would like to run a scenario by you and hear your opinions.

Currently have a deal under contract for $41,500. Also have a buyer set up on a contract to buy at $60K. I advised the client that I would do a rent to own contact of $900 month for three years. I have spoken to numerous lenders about the scenario and have heard nothing back.

Does anyone have any suggestions for someone who has a 550 credit score to get funding to purchase?

If the deal makes sense then hard money lenders will put money into it, for them its a win win usually. If you default they get it all and if you don’t they still make what they had hoped to make.

can your buyer qualify for a mortgage? if so you shouldn’t have a problem getting short term funding to sell to them, if they can’t get a loan its could be a problem,with a 550 credit score you will have a tough time getting long term financing

if your buyer can qualify for a mortgage, it shouldn’t be too difficult for you to get a short-term financing and sell the property to them. The thing is, their 550 credit can give you a hard time for long term funding.


This is a private money loan situation, not a hard money situation! Hard money 6 to 12 months! Private Money 3 to 5 years!

Hard money 12 to 18% plus 3 to 10 points! Private money 7 to 10% plus 2 to 5 points! (Residential)

Hard money is generally interest only! Private money is ammortized over 30 years but due in 3 to 5 years!

Hard money loan is based on property, condition and value! Private money requires credit check and job and income verification!

Hard money lender loans 70% max of your purchase price! Private money lender loans up to 75% of FMV / ARV!