no money bad credit and want to buy to rent or to flip. What should I do? where do i start?
This is often asked and I’m going to tell you what you probably don’t want to hear. Fix your financial situation first…period.
Unless you bring skills to the table and can get someone to back you financially, you need to fix yourself first before anyone will touch you for a loan. With no money and no ability to get money (bad credit), how are you going to pay for that new water heater/fridge/central HVAC unit when it goes out and your tenant calls and says they need it fixed? How are you going to come up with more money when you figure out your rehab budget was short by 35% because you ran into other problems?
Bad credit is caused by past financial mistakes. Work your butt off to fix those. Pay down those balances. Pay those bills on time. Work more hours or get another job to allow you to make it happen. Cut your expenses, etc.
Once your financial house is in order, then go for your deal. In the meantime, educate yourself on what you want to do.
Max look into wholesaling or bird-dog…take a look at the wholesaling forum lot’s of great information to get you going in the right direction, even with no money or credit. Good luck!
I realize this isn’t strictly a “creative real estate investors” forum, but let me give you a different tack on your situation…
You may not have money or credit right now. But somebody you know does. It’s true for everybody. We all know somebody with money and credit, that would like to make money without working for it. That’s where you come in. You do the leg work. That’s your contribution.
Meanwhile, lots of people have no money and no credit. But they’ve got “something” to bring to the table. It’s up to you to offer up that ability in order to get what you want. Give others what they want, in order to get what you want. I would add, give others what they need, and you’ll get what you need in return.
That said, size up your strengths and aptitudes… What are they?
Then get a copy of your credit report. What’s on there?
Build/make a financial (asset/liability) statement, even if you don’t have a savings or checking account at this moment.
What’s your net worth (positive or negative)?
Put all this on paper. Don’t hold it in your head. It’s easy to fudge and forget what reality is here, without writing it down. This includes remarking on your aptitudes and strengths, too.
Now, you’ll have an objective idea of where your starting point is. That’s half the solution to your challenge; knowing where you are with precision.
Man, I wish I could spend the time here, but you need a dream, a goal, and a deadline. I’ve got a video on my blog page called “free advice” that explains why in detail. Frankly, I send people to it to keep people from wasting my time with idle curiosity about investing in real estate. If you listen to it you’ll understand why.
If you can follow through on that free advice… you’ll start understanding how to go forward. Meantime, if you don’t first figure out the free advice, then you’re gonna be flopping around like a fish out of water.
Also, if you search for “saving money is for losers” on this forum (last 100 days), you’ll find an interesting thread in the “Ramblings” forum on how to go forward without using your own money.
http://www.reiclub.com/forums/index.php/topic,48745.15.html
Meantime, keep your day job, until you can replace it with income from your investment(s).
Have fun!
I started out the same way no money and bad credit,but the truth is it really doesn’t matter.Learn how to find a good deal then be willing to share your profits with an equity investor. How do you find a good deal,to start I would find a realtor who is very familiar with your market and tell them you are looking for a fixer upper,something you can put a little elbow grease into,and tell your friends, neighbors, family, that you found some really good deals that they could make a lot of money with you,and get them excited about the potential profits. Before you start make sure you know what a good deal is make the realtor give you comps of other properties that have sold in the same area and how long it took for them to sell. And also learn how to estimate the rehab,do your homework,your investor is at risk.
showcase.260,
You hit that one on the nail head. It doesn’t matter.
There are a lot of well-intentioned, yet disbelieving people out there who will advise against that notion. As a result, they build fear and trembling into people to the point they become hopers, instead of hustlers. Ever hoping to get their credit and cash ducks lined up.
Meantime, of course, the hustlers make the money while the hopers, well, sit around and hope.
Well, that’s fine, I suppose when the hopers are 18 and theoretically have 30 years to make it somewhere along the line, but not everyone has 30 years to experiment with that approach. Some have 10 years…and are maybe thousands in the hole.
Speaking of not being 18, not having a lot of options, and in the hole, I’m mentoring a client that lost his job, his house, his wife, and a million in cash… in a matter of about 36 months.
Today he’s in a financial hole that he can’t exactly BK out of, plus child support, plus misc. bills. Even if he had his old job back, he could not pull out of this mess anytime in the next 10 years the old fashion way.
However, for giggles, let’s say he could… That in 10 years he could pull out of the ditch and fix his credit just by saving and working. Now, we’re talking about being age 60…before he even starts investing the conventional way…
Well, it would be ridiculous to advise any 60-something with no cash to start saving for investment. I would want to literally shoot anyone who offered that advice. :anon
No, instead I would advise that he follow showcase’s example and immediately turn on the afterburners, assuming he’s got his health and energy.
Nonetheless, my client is ostensibly following showcase’s advice as we speak. After learning to analyze operating data and study his market and determine what’s available, he’s been finding and pitching sellers that are willing to seller finance him. At the same time, he’s found several sources for down payment partners …ones that are happy earn 10% on their investment with him.
Who knew there were sellers offering seller financing with just 10% down and aren’t curious about the buyer’s credit? Well, of course I knew, and that’s why my friend has learned how to overcome his credit and cash problems today, so he’ll be whizzing by all the 60-year old hopers ten years from now.
You got my juices going!
Great post, showcase.260…!
:beer
Bad credit and no money is a hurdle that many of us have faced or are still facing! However; that does not mean you can’t get started in real estate investing. Having good credit and money makes it easier, while bad credit and no money make it more interesting. I agree whole heartily with showcase 260, I know this has worked for me on numerous occasions, even having money and being deal poor, sometimes you have to step out and find private lenders! They are out there and some are offering okay terms, but when you have nothing, something is better, especially if you can gain a profit. Now with all that said :argue I do however think you should work on getting your credit back to good standings, this will be for the future investments that you are ready to make the whole profit on!! I use a credit restoration program that works for everybody, I mean everybody. This program is design to increase your score, good or bad!! :bobble it’s quite simple and best of all it really works!! There is a 100% success rate out of over 191K clients!! :help? This program will get you back to good status in a short period of time and will also teach you how to change your thought process on purchasing. Good stuff!