Newbie-need advice

General Real Estate Investing
1

Hello,

I’m renting a house from an owner who is a motivated seller. We were suppose to rent for a year then buy the house. Unfortunately, my credit was not high enough to get 100% financing. My scores are 509, 488 & 550. The owner called us & told us that she was looking for another realtor, so we were under the impression the 2 sisters had a fallen out. The owner recommended a loan officer, who we submitted our paperwork to. Before the loan officer pulled my credit reports, my credit scores were 514, 489 & 561. Now we get a call from the realtor who did not know the owner referred us to someone else. You know I’m >:(. I would have been halfway to the points I needed to get finance & this cost me 11 freaking point. I have not done any deals & do not have any money or good credit. I’m told that is not a problem for getting starting in rei. I’m looking to start in sub 2 deals & maybe wholesaling. At this point, we’re set on moving out of this house. My question is as a beginner rei, is there anyway I can get this house as a rei. If so, how. I have a real estate name already with ein, but not llc yet. Can someone please help me or do I just need to move on.

2

Your post is a little hard to follow (for instance, who are the 2 sisters?), but I will try to help.

  • if you can get the seller to “carry-back” a second mortgage, you might be able to buy the house with little to no-money down. With your credit scores where they are, you may be able to get a loan from a lender for 80%, and get the seller to carry a second mortgage for 20%.
  • you don’t need money or credit to do creative real estate
  • you can bird-dog, wholesale, sub2, pre-foreclosures, all without your own credit or money
  • you did not mention what the numbers are on the house you are renting, so cannot determine if the seller is really motivated, so cannot recommend one way or another if you should move on.
3

If the owner doesn’t need cash right now see if you can get her to provide you with owner financing. In other words, she could be the bank and in 3 years or how ever long she can wait, the longer the better, you could give her a balloon payment(Balance of the loan). in 3 years you should be able to fix your credit and since the property will be in your name, do a refi to pay her off.