Posted by Shelly Johnson on July 27, 2005 at 11:31:02:
I need help I have terrible credit and I want to fix it
How to get finacing with horrible credit - Posted by Sharonp fl
Posted by Sharonp fl on July 03, 2005 at 09:00:34:
Hi everyone i posted a question on the main news group but i thought maybe i posted on the wronge one being that this is the first postings that i have done. I have been studying real estate for about 8 months now and thought that maybe i should start the footwork of buy and not just reading and studying.
My questing is how do i get started with finding funding for capital when i have horrible credit and my only sorce of income is social security. Not only are the lenders turning me down but one word of my credit situation and the sellers wont talk to me eaither. what do i do i am frustrated but am sure that i must be missing something. Any advise would be greatly appreceated.
Re: How to get finacing with horrible credit - Posted by John B. Corey Jr.
Posted by John B. Corey Jr. on July 03, 2005 at 16:41:33:
- You do not need credit to do RE deals. You might find it easier if you had good credit. You might choose to get conventional financing if you had good credit. You do not need good credit to be a RE investors.
If you own a hammer, stop looking for screws and find some nails to hammer. Hence think of your situation as a tool box that has only certain tools so use what you have and largely avoid situations that require something you do not have.
If you do not know how to do this then you have not studied the right things to date.
Continue to ask questions and go find some different books.
Lease/options, flipping, hard money deals, wholesale deals, cash deposits on off-plan deals (pre-construction), being a bird dog. Search for these topics when you go looking and you will find info on how to do deals without good credit.
- As to why you have bad credit. A credit score is a backward looking indicator. It tells people about what happened in the past. Many people continue to behave the same so it can be a predictor of the future.
Your bad credit tells a lot of people that you might be trouble. Figure out what it is that you are doing wrong. Change the behavior so in a few months or years you can post here that you have great credit and lenders are calling you asking if you would like a loan.
Own your life and your credit and make it a positive reflection for why someone should do business with you.
John Corey
Chelsea Private Equity LLC
Re: How to get finacing with horrible credit - Posted by brian, ut
Posted by brian, ut on July 03, 2005 at 11:34:25:
Sharon,
It sounds like your trying to buy outright and use bank financing. At this point that is not the way to go. I am not familiar with your marketplace or state but your main goal should be to find the deals. Then you can write up a contract and assign it, take an option($10), or find a partner or whatever is best for the particular deal your working. Your capital and working knowledge will grow.
Above all else find an investors group in your area and attend their meetings and listen, listen, listen. Go to your local library and read every investing book they have. Do this for 30 days and then post your next question, we will be here.
Re: How to get finacing with horrible credit - Posted by Jorge Carrejo
Posted by Jorge Carrejo on July 03, 2005 at 10:47:04:
Have you started working on your credit? Why haven’t you been able to pay your bills?
Re: How to get finacing with horrible credit - Posted by Sharon
Posted by Sharon on July 04, 2005 at 09:59:51:
Thank you for your advise i am currently working on my credit but it is a slow procedure. I have been for the last year. and i have brought up my credit a little but i have never had major credit.
Re: How to get finacing with horrible credit - Posted by Sharon
Posted by Sharon on July 04, 2005 at 09:55:02:
I do pay my bills now but when i was in my twenty’s i was young and stupid and did not see the need for credit. Now that I am older and a little wiser I am in the prossece of fixing my credit little by little.
And i have never had major credit. It is all small stuff and hospital bills
Re: How to get finacing with horrible credit - Posted by John B. Corey Jr.
Posted by John B. Corey Jr. on July 04, 2005 at 10:07:01:
Sharon,
Building good credit does take time. Hence it is very important to get started as you can not speed up the clock. Well done on already being started for the last year.
At the same time find some good RE deals. If they are really good and you can make some money you can use the extra cash to improve your credit. You can get a secured credit card, you can put more down so a lender will loan on a property (a mortgage is a good sign on one’s credit), you can start an LLC and build credit in its name given a bit of cash to establish the LLC.
A virtuous circle (more cash and more credit).
Good luck. Stay in touch if you have questions.
John Corey
Chelsea Private Equity LLC
Re: How to get finacing with horrible credit - Posted by Jorge Carrejo
Posted by Jorge Carrejo on July 08, 2005 at 13:13:25:
Have you tried going to credit discussion boards like creditnet.com or creditboards.com They can help you with the dispute process and how to build it back up.
Re: How to get finacing with horrible credit - Posted by dee
Posted by dee on July 06, 2005 at 16:54:53:
What does RE mean?