High debt/income ratio but wanting to invest real bad!

Hey all…
Have any of you who have already started RE investing started out with a real debt/income ratio? I am passionate about RE investing but highly doubt a bank would want to loan me money to buy a RE property… Do any of you know any tricks, special program? I have though of setting up an investment company but in the end, since the company would be brand new, its credit would be tied to my credit anyway???
Any advice or similar experience would be highly welcomed…

There are a number of things you can do. The first is to find an investment partner. However, this can have problems unless you and your partner get along VERY well.

Try bird-dogging for some extra cash. Use that money to build cash reserves and to reduce your debt. Do you have good credit? Having a high debt/income ration is not necessarily a bad thing provided you can show that a) you can afford the investment and b) you are responsible with your money.

If either of the above are not true, then you need to address those issues before you step into anything you can’t handle.

I am sure there are a multitude of people that would be more than happy to pay you for leads on this site alone.

Join a local REI Club and begin finding other like minded people near you that can give you additional ideas/help.

Thanks for the reply!! Yes, even though I have a high debt/income ratio, I do have excellent credit and my husband as well. The problem we have encountered is my husband’s income being taken into account since he just started his own business a year and a half ago (I do have regular and stable income though).
As regards to bird-dogging, once you provide the lead, how can you be certain that the investor will pay you the fee? Couldn’t he possibly take advantage of the lead and not pay you? I have to say that I have never heard of bird-dogging before today… :stuck_out_tongue:

i found some really good deals. i asked a few investors if they wanted to partner with me. i found the loan, they put up they’re credit and we split everything 50-50. took them 2 secs to say yeah.

I have some investor contacts that I trust implicitly. However, if you have any doubts then just get it in writing. A simple contract that everyone signs that outlines Who, what, when, why and how should do the trick. If the investor backs out, you can go to court. However, depending on the deal, it is probably not worth the trouble.

You will find out real quick if the investor you bird-dog for is not up to par. These kinds of people don’t last long because their names get around. As an investor, your efforts are worth the money and to burn that bridge will ruin future income. Not worth the risk. Spend some time to get to know your investors and you will know who to work with and who not to.

Have you tried pre-construction.FULLY ASSIGNABLE CONTRACT (WHICH MEANS YOU DO NOT HAVE TO CLOSE). I have a project in Destin that is not going to be completed until Late 2007. Avg price is $400,000… GREAT INVESTMENT
10% down + 10% letter of credit w/in 90 days…

You can do very well with this one…

Let me know if you want me to reserve a unit for you.

where is destin?

I agree split it with an investor!