Beginner in Phoenix, AZ

I have been studying real estate investing for a year but have yet to do my first deal. My credit score is low and I have no money. I have found deals for 70-75% LTV. Can someone help me?

Edited: 06/26/2010 at 04:01AM

Lynn Z

689 posts
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Icon_minipost Sep 22 '07, 06:47 AM

I think a low FICO is a problem for an investor, first time home buyer etc. My commercial banker was slumped in a chair just last week saying " If you've got a great credit score you can get just about anything" I don't think there's any easy fix. Perhaps a family member that wants you to do the work and they'll help finance? Save money for awhile.

The easiest way you might start is trying to position yourself to buy a small SF house, live in it, make the improvements over time and in two years take the gain tax free. That deal may not be around too many more years if politics has anything to do with it. Welcome to the forum.

Edited: 06/26/2010 at 04:01AM

Calixto Urdiales

Residential Real Estate Agent · Los Angeles, California

1466 posts
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Icon_minipost Sep 23 '07, 09:35 AM

Hey there daryl,

That might be a problem but if you have the money for a large down payment it shouldn't be a problem with a good co-signer! Thanks for making our community bigger for joining and i hope you find what you need! Take the time to look around and find what you need to make things a lot easier for you when you invest in the future!!

:welcome: To BP!!

Edited: 06/26/2010 at 04:01AM

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Icon_minipost Sep 23 '07, 04:43 PM

:welcome: to BP.

Tell us more about yourself and what you do for a living.

John Corey

Edited: 06/26/2010 at 04:01AM

Daryl Crabtree

Real Estate Investor · Phoenix, AZ

11 posts
1 Influence
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Icon_minipost Sep 23 '07, 05:40 PM

My name is Daryl. I live in Phoenix, Arizona, and I am sorry to say I have been living off a disability check for 20 years. I was on drugs for 30 years, but quit 3 years ago. I am attempting to be an active part of society, and would like to invest in real estate. I have the chips stacked against me but am making a go of it. Thanks for asking.

Edited: 06/26/2010 at 04:01AM

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Icon_minipost Sep 23 '07, 06:51 PM

Originally posted by "darylcrabtree"

My name is Daryl. I live in Phoenix, Arizona, and I am sorry to say I have been living off a disability check for 20 years. I was on drugs for 30 years, but quit 3 years ago. I am attempting to be an active part of society, and would like to invest in real estate. I have the chips stacked against me but am making a go of it. Thanks for asking.

The past is just that. The past. You can not change it. You can certainly create a different future. RE investing can be started at any point in your life so it could be a perfect way forward.

If you can find really good deals (more or less implied earlier) then wholesale them for short term cash. Take the cash and get your credit sorted. Also use the cash to provide working capital for future deals.

A person in the UK was saying how the 3 D's will help you find deals. Divorce, Debt and Death. I will add one other and that is Drugs (all different types). That last one normally is a trigger for the one or more of the other three.

As you have experience with self-destructive behavior you might be particular good at showing empathy. Helping people who are facing the 3 Ds when you are hunting for motivated sellers.

You also might be able to build success and then have a better story about how you went from diasbility to self-employed.

Go for it.

John Corey

Edited: 06/26/2010 at 04:01AM

Daryl Crabtree

Real Estate Investor · Phoenix, AZ

11 posts
1 Influence
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Icon_minipost Sep 23 '07, 08:17 PM

Thank you very much for your encouraging reply, sir! And now I have been up all night long studying RE Investing and being on my laptop, and must go find a JOB in something like telephone work to make ends meet. The ship still floats so there is no reason to give it up. Have a great day!

Edited: 06/26/2010 at 04:01AM

Mark Y

27 posts

Icon_minipost Sep 23 '07, 08:34 PM

Originally posted by "darylcrabtree"

I have been studying real estate investing for a year but have yet to do my first deal. My credit score is low and I have no money. I have found deals for 70-75% LTV. Can someone help me?

Hi Daryl and welcome to the forums. I'm from Phoenix as well, only I have an outstanding credit score and money. Just can't find any 70-75% LTV.

Good luck with your future, congrats for getting off the drugs.

Edited: 06/26/2010 at 04:01AM

Daryl Crabtree

Real Estate Investor · Phoenix, AZ

11 posts
1 Influence
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Icon_minipost Sep 23 '07, 08:49 PM

There is a property in Moon Valley (Phoenix) I could contract for that is going for 70% or less! It is a 4/3 with 3 swimming pools valued at $350k-$480k. For you it would be only $245,000 including my $7,000 assignment fee.

Edited: 06/26/2010 at 04:01AM

Calixto Urdiales

Residential Real Estate Agent · Los Angeles, California

1466 posts
57 Influence
4 Awards

Icon_minipost Sep 24 '07, 12:32 AM

Hey daryl,

Thats pertty nice do you think you can find anything in CA?
Mostyly LA county!!

Edited: 06/26/2010 at 04:01AM

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Icon_minipost Sep 24 '07, 03:53 PM

Originally posted by "darylcrabtree"

Thank you very much for your encouraging reply, sir! And now I have been up all night long studying RE Investing and being on my laptop, and must go find a JOB in something like telephone work to make ends meet.

You are welcome.

Keeping the ends meeting is key when you have rentals. REI is very much a business focused on the cash flow. Lump sums or monthly checks.

Originally posted by "darylcrabtree"