Help! Can I flip w/ bad credit?
Hey guys,
I need help and I wouldn't trust anyone but me fellow Pocketeers to advise me.
I'm 21 and my credit score is laughable and rather embarrassing ( go ahead and laugh at my pain, it's ok ).
Mentally I feel ready to begin investing. I know there's still an immense amount to learn. But I feel the best way to learn is by getting my feet wet. Have to start somewhere, right?
My goal is to start flipping... I'm handy ( more than the average hammer & nail beginner ), I learn fast, and I enjoy the hell out of it. I can't see myself doing much of anything else besides this.
However, my credit is so poor my loan rates will either be tremendously high ( how much will this hurt me if i'm not buy & holding but aiming for a 90 day flip? ) OR I won't even be able to receive a mortgage loan.
There are multiple properties I have located ranging from 275k -550k in the Denver market which we all know is crazy right now. I have my sights and heart on the 4b2b for 550k (I can probably get it for a less due to it's condition and needed reno ), the house is in poor shape, the resident is a stage 10 CODE RED hoarder, but in the perfect neighborhood. Comps across the street are between 630k-725k. The potential is absolutely there. 80-100k profit depending on the rehab budget.
All that is nice and fun but meaningless without the ability to get a loan or backing.
What should I do? Hold out for another property until my credit score rises or find other means?
How much will the rates effect me on a 90 day flip?
Does credit only play a role in time?
Please, point out each and every flaw or hole. Only way for me to learn and grow.