BiggerPockets

Hi guys, due to my credit score, most banks will not entertain me. Long story short, I'm able to buy the ABC property without any mortgage with my personal savings to start but of course it'd be wise to use bank's money instead of your own to buy property for investment.

THE PLAN: If I buy ABC property (without any mortgage) for personal use with my personal savings, which means I fully owned ABC property with full equilty. Can I use ABC property as a mortgage to get a 80% bank loan for my 2nd property for investing? (assuming both property are of the same league)

The reason why I'm doing this is because if I do not have ABC property under my belt, bank would require me to put that money with the bank as a security. Rather than putting it in the bank with measly interest income plus the inflation, the best bet here would be; instead of putting the money with the bank as a security, I might as well put the money in ABC property whereby I can either use it for personal use or rent it out as well as beating inflation and lastly there is still a chance it may appreciate in value.

In short, ABC property is just to show the bank that I owned a property here and I wanna use it to get a loan to start my investing business in real estates.

Originally posted by James Harkness

Banks are still going to look at your credit score. Banks are not in the business to foreclose on properties and then have to sell them as REOs.

Your credit score will be a determining factor in your abilty to get a cash out refinance.

You will likely need to get a hard money loan, where they don't look at your credit score as much and instead focus on the value of the collateral when doing a loan.

Wow it seems getting a loan from the bank is as difficult as robbing the bank. What do I have to do to raise my credit score in order to get a loan from the bank to start my property investing journey?

Will be very grateful if anyone out there can guide me to buy my first investment property...

Wow it seems getting a loan from the bank is as difficult as robbing the bank.

No, getting a loan is relatively easy IF you are creditworthy. Why would the bank loan money to someone who has proven to be less that trustworthy, when it comes to money (i.e. has a low credit score)?

What do I have to do to raise my credit score in order to get a loan from the bank to start my property investing journey?

Pay your bills on time and establish a history of being trustworthy with money.

Good Luck,

Mike

Mike's referring to your credit score, not your utility bills. If you have a crummy credit score, it means you have not paid your debts in the past, and that's why banks won't lend to you now.

The other question that might be of interest to discuss in Winstrol's position is to notice that he divides his time between Thiland, Bangkok, and CA.

This would bring up additional risk to the banks. If he were to default, where do they get hold of him to serve him his notice.

I am not sure how a low wage earner could easily move between these three places, but anyone want to also mention the problems associated with a possible foreigner trying to get credit and improve that credit within the US intself?

Lets try to keep away from the political side of things with illegal aliens and what some banks are doing, but speak those who are properly trying to do things and may not understand just what to do to help their situation.

I guess that is right Eddie. Looks like I was thinking of Hongkong.

But I believe the point remains the same.