Bad Credit VS No Credit

Debbie: while having credit is a huge plus it is really no longer necessary. The chances of a investor walking into a bank or financial institution these days and getting a loan, even with a high credit score is just not happening as it once did.

There are many options outside of that realm of the financial industry, that credit is not necessary.

There is private funder money, there is transactional funder money which in my book is the way to go right now because they don't look at credit, they provide funds to you for your deal as long as you have a immediate or near immediate end buyer lined up to buy from you.

There is also hard money lenders, but they can be expensive, and they are one option.

Let me ask you this question. Knowing that employers sometimes check credit, would that keep you from applying for that dream job? of course it wouldn't, so wouldn't you do the same thing for the best business in america, real estate?

I have become wealthy from real estate wholesaling, others have too from many areas of real estate. This business takes time and work, but it can be done.

Thanks for the speedy reply. Okay so what I'm gathering from your response is that it is in fact possible to buy and resell real estate for a profit with bad credit (not simply "no" credit), but I would just have to use more creative ways?? I apologize if I seem naive, but to be honest....I am! Very much so With reference to transactional funder money which you mentioned (they do not look at credit) I understand that this source will "provide funds to me for my deal so long as I have an immediate/near immediate buyer lined up....." but how in the world can I possibly line up a sale on a property before obtaining the money for the property? I am not sure if I worded that correctly, its just in my mind the way I am understanding it, it seems like its being done backwards...finding a buyer who is serious about making the particular purchase, lining up a sale for a property which I do not own nor do I have any claim to, then finding someone who is willing to give me money to "purchase" (flip almost seems like a better word) and quickly sell the property...making a profit for both of us (I'm assuming). I'm sure I sound crazy trying to explain how I'm looking at this whole thing. Say I find a home that is about to be foreclosed upon or is selling for cheap (not sure if foreclosed properties can be involved in this sort of situation??), I'm assuming I would call the seller to find out the status etc.. (is it in the middle of some transaction or something), lets say its uncomplicated, no interest etc.. now I search for a buyer (I'm sure the book will show me how to do that)...and find one, now at THIS?? point I am to contact or proceed with the "transactional funder"??? and tell him/her the situation and ask them to lend me money to purchase and sell this house?? It seems that I would need to be able to purchase the home first before selling it, or is that what I would have done if I had good credit? A few things worry me...what would stop them from saying no and going ahead and doing all of this without me or people like me? What if I set all of this up and in the meantime someone else decides to purchase the home? What info do I show the seller to let them know that I am able to purchase this home (when in reality I cannot)? Won't the seller want to run a credit check on me or do some sort of something to try to pre-qualify me to purchase the home? Also, basically, how do I have any right at all to set up a sale on a property that I do not own at all? Is that even legal?....That is one part that really confuses me. I know this is a lot of info for one person to supply so if anyone else wants to jump in and help before this person starts seriously wishing he/she never replied to me in the first place that would be great and I am sure he/she would appreciate the help and I definitely would appreciate any and all help since I am brand new to all of this. Thanks again!

Transactional funding is used when you do a double closing. You get the property under contract and then sell it to another investor/buyer. The transaction funds cover your purchase for 24 hours or less. They do not care what your credit is. They provide a "proof of funds" letter also.
Anyway, you have to have the property under contract and a real buyer lined up for this to work. There is are several ways to do this.
To learn more and gain access to transactional funding and POF letters go to my website, read carefully and watch the presentation. If you are going to be making offers on REOs and short sales this program is great. It will teach you how to locate owners and lenders and their listing agents,ETC ETC. Its a GREAT program, I have it and use it daily!

Go to http://www.mdtfcam.com

If you have any questions PM me and I will give you my contact info.

Good luck!

Michael Mangham
MD Home Acquisitions LLC

http://www.mdhomeacquisitions.com Seller site
http://www.mdhomea.com Seller site
http://www.mdhacq.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshouseshunter.com Bird dog, door knocker site
http://wwwmdtfcam.com Transactional fund Site

Id def. say your credit needs to be repaired first...

RJB
www.****
Free Real Estate Lead Generator

Thank you so much for the info! I have bookmarked your website for when I return home and will have the time to sit and really go through it. I have to learn a lot of the basics before I can actually start doing this (I do not even know how a closing works or exactly what happens there etc..) but I am getting very excited, I just hope I will not end up let down because there is some loop hole or snag that I am unaware of at this point. It just honestly seems too simple and easy to be able to do this and make money off of it. I do not need to make hundreds of thousands of dollars to be completely satisfied with this (although that would be nice ha ha). I would love to just be able to do simple things (like buy a dependable car!) that as a single parent I am unable to do right now. If I could even increase my income by say $500/mo I would be happy. Is that something that is an option, realistically? I get nervous when money/profit is discussed because I feel like a lot of people/companies will brag to you about all of the thousands of dollars you can make just to get you to purchase their product or subscribe to their site or what have you. I would much rather have realistic information and know exactly what I am getting into and what are more common profit margins etc.. I see on most, if not all, of those late night infomercials, including Deans, there is a little note stating "results not typical/customer may have purchased additional materials" etc... Honestly, I would much rather have the "Typical" results shown to me, that way if I did end up making more I would be pleasantly surprised, rather than expecting more and being let down....know what I mean? I am really interested in all of this and am going to learn all I can and I really and truly hope and pray this is a real possibility for someone like me in my situation. I understand it takes time and work, I do not have a problem with either....its the money/credit I have the problems with....which makes it all seem that much more unattainable. The fee's mentioned during the closing and with the transactional funding, are those included in the loan? Taken out of the profits? Is there any cash I will need up front for anything? I would rather know the realities of the whole process. I really look forward to learning more about the entire process and hope I will be able to better provide for my children, since I am all they have to depend on now. Thanks again for all of the great info!

I understand your questions fully. Let me first tell you that I don't follow Deans teachings, never would. I have my personal opinions about him and won't air them here, however, allow me to get to the heart of the matter.

With transactional funding, this is a very simple system to use or strategy for a better term.

You are selling a deal you have under your control. Now I know that may confuse you a bit so I will go through a deal I recently did about four months ago. I have since then done 5 more, so here goes.

Location: Plantation, FL.
Description: 4 bedroom, 4.5 baths, 3 car garage, 1.5 acres.
Situation: Bank owned/REO. Went to auction and no one bid. Property not laid out correctly. Driveway entry/exit sits right on main street with heavy traffic flow. Too much work for most of the investors who took a looksey.

Property Value: In Great Condition: $446,000.00
In Day of Purchase Condition: $224,000.00
Amount of work needed: $31,000.00

Banks asking Price: $ Make an offer.

My Offer Price: $ 260,000.00

Purchase Price: $270,000.00

Now what I did was I already had it sold before I made my offer. I took a investor from out of the area who is a contractor and he toured the property with me. He has no investing or negotiation skills and no track record, so he relied on me to lock up the deal at a good price, so he could come in, do the work and resell it.

I had in three days time, a contract with the seller, called the A-B and a contract with the end buyer, called the B-C and I used a transactional funder because I had never dealt with this bank or this end buyer and did not want to have my own funds at risk, although if the end buyer, the contractor flaked, I could have done the honorable thing and bought it using my own funds, if I was put into such a position.

I sold the property for $330,000.00. He got a property for $100,000.oo plus, under the market value, in a nice town.

The contractor spent from what he tells me $16,000.00 to fix up and he got a contract on it for $438,000.00 yesterday. He was able to use his trade discounts for materials and he has his own crew, so labor costs were not high.

You lock up the property with an offer. You locate a investor who will buy from you at more than what you paid but less than market value. You use the transactional funders money to purchase and close in your name as a standalone transaction and you resell to the investor the same day and when all is said and done, you go to the bank with your profit.

No one checked your credit because no one cares, it has nothing to do with the deal. What mattered is that you found and locked up a good deal at a good price, you sold it at a higher price than what you paid. The funder lent you his/her funds for the day, got them back within 24 hours from closing along with a fee for the use of the money. Everyone wins in this deal and this type of deal.

Hey Paul
The reason you used transactional funding is because it was a REO? Otherwise you would of utilized the IEE methods?

Also forgot to ask, did you use a title company or a fee attorney for closing this transaction? if you used a title company, are they licensed in Texas or Missouri?
The problem, I am running into is, that title companies are not willing to close double closings, or let me utlize the IEE methods or assignments etc. Anyone having the same situation? Or have a easier solution?

Darren

I use a title company for my transactions. I chose to on this simply because I could. It has nothing to do with the type of transaction.