I want to buy 3 properties but my credit is poor. Is ther a way for me to get financed regardless of this issue. And can I get the purchase and rehab financing all in one loan. What kind of loan should I get. Where can I find such a loan. Is there anyone who has done this with bad credit who can give me some creative financing ideas?
2006-11-17 06:12:06 · 6 answers · asked by carol_king03 1 in Business & Finance ➔ Renting & Real Estate
With the right amount of money down you can probably do about anything!....That said.....IF you have poor credit and no money to put down.....I would advise you get your credit back in order over the next year or so and try again.....Call a local lender (most of them will do a pre-qual for free!)....You might try Countrywide or First Horizon...I would stay away from "on-line" lenders as they sometimes make promises they can not full fill (just my experience)
2006-11-17 06:18:00 · answer #1 · answered by Anonymous · 1⤊ 0⤋
You dont have even close to enough money to do what you want to do. First, you should NEVER get a loan for an investment property. It is a good way to loose a lot of money. Even if you put $100,000.00 down on a $400,000.00 loan, your payment will still be around 1900.00/month. The RE market is doing really bad right now, and it is only going to get worse. The days of people getting loans with no money down are over, especially for people with bad credit. If you want to do what you want to do, you need to take that 100 grand and put it in the bank. You need to work FULL TIME and save so you can pay CASH, meanwhile, you will be out of the game while prices continue to fall. You cant rent out a home that you are making a mortgage payment on. It is WAY too risky... unless you happen to make enough money to cover the mortgage when it is sitting empty. And in that case every month you are losing thousands of dollars on interest. The RE boom is over. There will be at least 2 more years of falling values and continued slowing sales.
2016-05-21 23:10:12 · answer #2 · answered by Anonymous · 0⤊ 0⤋
My concern would be with your bad credit rating. Should you actually find a lender willing to loan a substantial amount of money to a single person or entity, I'm afraid the interest rates would eat you alive. My suggestion is to work on improving your credit report and rating. Save up a large sum of money while you're working through the credit stuff and with a substantial amount of cash to put down, you'd be more likely to get the loan you seek without costing you an arm and a leg in interest and finance.
2006-11-17 06:27:16 · answer #3 · answered by Doc 7 · 0⤊ 0⤋
With a bad credit rating, you fall into the sub-prime credit market. You are basically gonna get gouged on whatever loan you are offered so you have to ask yourself if the potential return on your real estate investment will offset the huge interest rate that you will be charged.
I concur with the previous poster. Get your credit situation fixed up before going after the real estate investment.
2006-11-17 06:25:10 · answer #4 · answered by Andrew H 4 · 1⤊ 0⤋
Look into wholesaling. In this strategy you are looking for good deals and then sell the contracts to qualified investors with available funds. You never own the property and you collect the fee from the buyer. This could help you build up a war-chest for future investments.
2006-11-17 06:17:29 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Frankly, I think you need your head examined. Have you been reading the news lately? Real estate is over! I read the other responses and have to agree: anyone with bad credit is going to get gouged, and with subprime lenders going the way of the dodo you're going to have fewer and fewer doors open to you. Why not spend your hard-earned cash rebuilding your credit and your life?
2006-11-17 06:35:19 · answer #6 · answered by bluelightenron 1 · 0⤊ 1⤋