Need advice and Help!!!! Getting Discouraged! - Posted by Maiysha Daniel

Posted by Ed Garcia on September 14, 2003 at 09:52:10:


Here is a little piece I wrote a while back, I hope it helps you.

Here are the (9) ways to do deals with no money and no credit.

9 ways to do a deal with bad credit


In my workshop, I teach that there are at least 9 different ways you can do a deal with poor or bad credit.

Now before I give them to you, I want you to know that I’m really supportive of learning deal structuring. The first thing you need to do is, “investigate your deal” to know what I call (where the bodies lie) another words what is the seller’s main objectives or motivation. That allows, you to have an idea of what approaches are going to be compatible with the sellers needs, allowing you to do the deal.

Here are the 9 ways that I’ve mentioned.

(1) PARTNERHIP: Find a 50/50 partner. It don’t have to be 50/50, it can be what ever you can negotiate.

(2) FLIP: the best way to flip is to find a potential buyer first and then find a property. You can do this by running an ad on a property to see what kind of action you get. Once you have a potential qualified buyer, you’d be surprised how easy it is to find them a house.

(3) LEASE OPTION: Many times you can buy and sell with a lease option. We call this a “Sandwich Lease Option”. Jim, I’m not going to go into any great detail, you can find this information all over this forum.

(4) SELLER CARRY BACK: This is one of, if not my favorite way to buy. Now the best way to utilize this system is to do a second seller carry back in order to give the seller some cash in the deal. If money doesn’t exchange hands, many times the seller doesn’t feel that they consummated a sale.


I find a house that has a small balance on the first. Lets say the house is worth a $100,000; the balance on the first mortgage is $30,000.

If I wanted to buy this house for lets say $80,000, I could ask the seller to carry back $15,000 and go to a hard money lender to borrow 65%
of AMV (appraised market value) of which is $65,000 and the seller carrying $15,000 in second position, would ad up to $80,000. It would also give your seller $35,000 new cash, and $125.00 income on the $15,000 loan that they carried at 10% interest only, for 5 years.

(5) HARD MONEY: Hard money, is an equity loan made at approximately 65% LTV, based on the equity of the property only. Credit is not a consideration.

(6) HARD MONEY/SELLER CARRY BACK: Again, You can have the seller carry back a second and refinance the first, giving the seller some money. You can do variations of this system.

(7) SUB PRIME FINANCING: Many National lenders will provide financing at 70% with poor credit and won’t verify money down.

(8) SUB PRIME/ SELLER CARRY BACK: Again this combination can provide money to the seller, rather than ask them to carry the whole thing. Also there are local independent portfolio lenders that will lend as well as mortgage co’s and I always recommend seeking them out. National one’s would be Associates Finance, American General, Beneficial etc.

(9) CREAT YOUR OWN MORTGAGE: In our workshop, Terry Vaughan covers this, and shows you how to discount it and market it.

Ed Garcia

Need advice and Help!!! Getting Discouraged! - Posted by Maiysha Daniel

Posted by Maiysha Daniel on September 14, 2003 at 07:18:20:

Hi, I am looking to start up in the real Estate business. I have some bad credit and need some help turning it around would very much a Love some assistance. Haven’t found too many Hard money lenders in Michigan to compare or know if I an not being shisted. Need some advice and direction. Had some great advice so far but could not work it at this time or I didn’t know enough to get the proper results.

I have bad credit, but a lot of ambition. Need some advice on getting started with bad credit. Would like it if some one can talk to me who has done this sort of thing already.

Thanks for any help you could give.

Hi Maiysha, Here’s a couple of suggestions - Posted by Sharon

Posted by Sharon on September 14, 2003 at 20:05:30:

You can put into action even with “bad credit”, and generate some cash to pay off your debt and get your credit together.

  1. Flipping properties: Established a buyers list with other investors and go shopping for them by finding properties that meet their criteria. You can get properties under contract, and assign contracts to investor for cash. You can find these investors by joining your local restate club. Or, look in the newspaper and call the ads that say: “We buy houses for cash”, and see if you can add them to your contact list. Also make sure you ask them for proof of funds like a bank statement to make sure that they are not flakes and can perform.

  2. Advertise in the newspaper for a “money partner”. You can simply borrow the money from soneone else and promise a good return on the money.

Typical ad:

Earn up to 12% on your money!
Very secure real estate investment.
Call 444-444-$$$$ for more information.

Good luck!

Sharon Jones
Real Estate Investor
St. Louis, Missouri