Heres the deal…Came across a house in upscale neighborhood…parents died, house left to out of state children. Asking price 875k. Needs work. Comps came in at 1.1-1.5mil. We are doing a walk through on monday,and then we will get a contractor in to estimate repairs. It seems like we have some room to work with the price…we think they will go lower, depending on our estimates for repair. My partner and I are young guys, no credit. I have one (i heard you are supposed to have 3…to get financing?) credit score…712 i think…but the only thing i have ever payed on is my car…thats it. We both dont work so we have no “steady” income, so is there a way to finance this? Do you think we could find hard money in this situation? Do you guys have any other ideas to get financing so we can rehab this thing ourselves? We also thought about getting the right to buy, and selling that to another investor with the means. What do you guys think??? please help with any ideas. thanks
Go out tomorrow and get a couple of store credit cards each. DOnt worry about the seasoning isues with credit there are banks that will fund in your situation. Its a fairly simple loan as long as there is equity in the home. Let me know if you need any financing help on this one.
Blueprints1971 is right. No matter what you do, you need to develop some credit history. You stated that the only thing on your credit is a car? Then you stated that you only had one bureau. If this is the case contact the company that you purchased the car from and have them list it with the other 2 bureaus.
When you do get credit cards do not go crazy. Use them and then pay them off each month if possible. Worst case make sure that the balance that you carry is less than 50% of the available credit. This will help your credit score.
You will probably not be able to find funds for this transaction in the normal places. Shop around and Contract a Broker to help you find the best source of funds.
Good advice on building your credit and I agree…however, you may still be able to find financing with your current situation if you can put money down- probably 10-20%.
In my opinion (for what it is worth) I think that this venture is a little steep for your first deal and the fact that you have no income. You could probably find some type of financing, but, what are you going to do if you do not “flip” it quick enough and the payments come due.
You said the Purchase Price would be approx. 875k. If we put this on a 30 year fixed rate of say 7%, the payment would be $5821.40. Even if it were Interest Only the payment would be $5104.17
I am thinking that maybe you should start out a little smaller, build your credit/assets and work your way up. Defaulting on this large of a loan would be devastating to your credit/future.
Just my personal thoughts. 
That is a a good point too.