I’ve talked to a couple of different people who are looking for good credit investors to joint venture with them in RE deals. Whether its cause of there lack of credit, high DTI, etc. they are looking for good credit partners to keep deals coming in. Has anyone heard of this before? Some money is paid upfront to myself and then we split the profits 50/50 when we sell the property. I don’t put a dime in this deal but yet I make a decent profit for my good credit? They pay for the rehab, holding costs, etc. This sounds too good to be true and therefore if its too good to be true then its probably a scam or just not possible. Anyone care to weigh in on this subject? I appreciate it.
We have investor in our area that run ads in the paper for people with good credit to do this. But in my opinion is it NOT worth giving your social security number out to some broker that might send it to 3 different banks , them pulling your credit 3 times for some reason and then having that debt on your credit report. Not to mention the fact that every time someone pulls your credit your score can drop 5 points each time.
When we do loans we look for debt to income and if you have another property on your credit you might not qualify for something you want to buy. Or even worse you might not qualify for an owner occupied zero down loan now because you already have a mortgage in your name…that is not even your house.
Be careful and weigh all of these things when making a decision like that.
drop 5pts? maybe 1pt. If you do rack up properties then you may have trouble with some lenders qualifying for a new loan, but if it’s only 2 or 3 properties then I would not be too concerned about it. Some lenders will do unlimited amount of properties.