OfflineA lot of uson here do not have good credit or finances that would allow us to get up and go out there and just start purchasing. I get a lot of mail asking about how to get started so I am going to drop a few suggestions. I am sure they probably have been addressed on here somewhere but I am putting them out again.
1. Ask family member with good credit or credit strong enough to get a loan. Most will say no, but you might try telling them that you will make them an equity partner and pay them back a percentage of the profit upon the sale of the property.
OR
If you are just wanting to use their credit to get a pre-approval letter to lock up the property and assign it before closing, then tell them that and offer them 5% of your profit for letting you use their letter.
2. Find a Hard Money Lender or a Private Lender and do all of your paperwork with them beforehand. Then once you get assigned a person that you will be working directly with, get the Proof of funds letter and start locking up properties. As for your portion 15-20% that they may want to see in reserve, set your top price on purchase, lets say you will only look at properties under 50K then you need will only need to show 10K in funds for yourself, so go find a friend or relative and get a copy of their bank statement and cross out all of the personal info and use that. They only want to see that you have access to it. Or better yet, have the person that has the money transfer it to your account then get bank printout showing it in there then transfer back to friend/relatives account. You have to use our mind and be creative sometimes.
2. Ask the owner if you are dealing with a FSBO (for sale by owner) to raise the price enough so that they can carry your down payment and closing cost, yous should should only have to pay for insurance and appraisal if that.
I know there are a ton of other ways but I just wanted to post this up as a quickie to get the info out there. I hope it helps. For more in depth info, use the search bar in the upper left and type in your keywords and search the forums for more great answers.
Anita
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TWITTER - anitarny / FACEBOOK - anitarny
"FAILURE IS NOT AN OPTION"
Using others credit (credit partners) is one of the primary ways that you will need to tap into to hold property. Banks are allowing us to hold only 3-4 properties in our own names right now. Unless we use others credit to purchase / refinance the property we will be stunted in our growth in real estate.
A very good, hard to find, way of refinancing is a no seasoned refinance (refinance before any payments are made) using a credit partner. You could purchase a property with hard money then quickly refinance with a no seasoned refinance. Now you can hold the property you purchased with the cash of hard money but with a good interest rate for renting.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125