I have an opportunity to purchase a 15 unit multi-family, my problem is my credit score is about 550 due some tax liens on my credit report, thay have since been cleaned up, but remain on my report.
My question is what options are available to me for this property. I believe the seller will hold a not for about 10% to 15%.
Any guidance that you may have would be appreciated.
Howdy Chap:
I have done seller financed deals without the seller even asking a single question. I told them I buy property all the time and have about 20 properties and that was about it. If you have a motivated seller they may just want out and will not even ask. Most bad marks may be explained away anyway with a little creative selling of yourself. Then again there are the other sellers. I talked to one once who was $12,000 behind and he owed more on the property than it was worth. The first words out of his mouth was how is your credit and how can I be certain you do not get behind and give the house back. He gave the house back himself and there was no way anyone could deal with him. Go for it and do not even mention your credit.
You might try getting some of those negative remarks removed from you credit report.
Check out this website http://www.i3solutions.net/main.htm
I heard these guys speak at an investor meeting a few months ago. I’ve never used them, but I’m going to give them a call next time I run into a buyer with bad credit. They say they can clean up credit in as little as 3 months.
Hello,
Help is available if you have a credit score of at least 500, and no other major negative marks on your report. Good Luck,
Depending on the funding amount, there are non recourse loans available for commercial deals.
Talk to a lender with alot on experience. If you’ve have no more tax liens your loan officer can do a rapid rescore which should raise your fico.
This is considered a commercial deal and most commercial lenders may alow you to do this loan under your coporation if you have an EIN number with established credit.
If you don’t, consider establishing credit with a cell phone credit card and others to get your companies a credit history and then you having this problem is history
You can actually obtain financing with upto 75 ltv which may vary by state. The loans in the name of corporations. Even with credit score under 500.
Silver,
could you tell us more about building credit under our company’s name? I have not heard of this before.
(also…75 ltv?) :-[
cjterry_nc
Well I don’t believe it is at 75% silver I Know it is at 70% when it is below 500 more LTV when it is above 500