Great Credit but not much cash

Hi all,
Love this board!

I have outstanding credit (750 FICO) but not a whole lot of cash to invest. With that being said, is there a particular area of REI that would be suited for someone like myself (noobie)? Would I have an advantage in a certain niche with great credit as opposed to someone who does not?

Uncle D

When you have no cash…

You gotta go flip some properties to put some money in the bank.

Don’t you have to have cash to flip properties? Or are you speaking of wholesaling?

Uncle D

In todays crdit market a good credit score is just the tip of the iceberg. You have to have reserves. The only other option is to go with SI/SA loans but to qualify for those you have to have two years of landlord experience. There are people posting here and on other sites looking for credit partners so you might try that.

buy the course and learn how to paper a deal … using other peoples money creating notes , wraps, sellers carryback sell yur credit many other topics


    You could do the rehab/flip. You can purchase, rehab & rent. I talked with a local broker yesterday. She said I would need 10% down and can get me 7.25% on a rehab loan. She said this is from Hard money lenders. HML are usually very expensive but short term. I'll talk with her on Mon. to get more info, but try calling around your local area. Look for ads in the yellowpages that say things like "Investor Loans",  "rehab loans",  "No doc". In my experience, these are indicators that they have access to hard money lenders. You can use HML to purchase & rehab. Then you'll want to refi as soon as the lender will let you. With your FICO, you shouldn't have a problem  refinancing. You may have to rent the place out until it's sold. You could pull money out when you refi (as long as the numbers work) or get money back when you sell. I'm being very general here because I don't know you situation. Personally, I'd like to rehab & rent. I'd then do a cash out refi as long as my added debt still allows positive cashflow. This way, I don't have to pay taxes on the capital gain I would have recieved if I sold the house. The money I take out of the refi is tax free because it's a loan. That money can then be reinvested into the next property.  I hope this helps.


Thanks for the input…

What course are you referring to? :rolleyes

You’ve got good credit so you are 90% of the way there. If you have good credit, you can always borrow money. (protect that credit score like it is gold)

Banks will generally count 75% of the rent as your income if you buy a rental. That will help you qualify for a loan when you are ready to do buy and hold investing.

However, real estate becomes even easier if you have some cash to work with. So you might have to start with a few deals that don’t require cash in order to build up a nest egg that you can then use to move into better deals.

You said it best. Although I realize there are many creative ways to do deals without cash, it seems that the easiest way to get the best deals is with cash…cash is King!

I am currently working on saving up 100k to start doing real estate, and in the meanwhile I am learning what I can and improving my credit score.

How long will it take for you save $100k? You could get started with about $20k. It depends on what area you’re looking to get into.

soholingo, you can make $100,000 doing real estate deals a lot faster than you could save it up.

You have to start with smaller deals with smaller returns and keep that money working. It doesn’t take long to get up to $100,000.