we are looking to begin investing in real estate and was met with some dampening news. our credit scores are 513 and 525, we have about 4K for down payment.

we have some resources: 1) parents with good credit who will not have to put money down 2). do owner financing 3) refinance our existing mtg with cashout (this option will make our current interest rate increase by 2%)

we have been looking at these areas for potential investments: tax deed auctions, mobile homes, flipping property and rental properties

are there any suggestions as to where to start

You need to start by working on your credit. You’ll have a hard time finding anyone to loan you money with a credit score that low.


Unfortunately, Mike is right. You have to get your financial house in order before you can fully take advantage of the opportunities that are available. I have had numerous clients that have gotten in to trouble due to there lack of preparation.

“Most people do not plan to fail…they just fail to plan”

Why are your scores so low? Is it something that you can fix quickly?


Depending on your needs, you can pull cash out of your property while you continue to work on your credit. But, remember, nothing is wrong with delayed gratification for a better return on your investments.