Getting started, have cash and bad credit
I have been reading this site for a few months now. Due to a lawsuit I will be coming into about 800-840k. I want to make sure that I don't blow the money and I'm trying to get into real estate investment. I filed bankruptcy 18 months ago so I know lenders will either deny or give me high interest loans. I'm currently in the Army out in Colorado Springs, colorado. What advice would all of you give for a person in my situation?
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shaun. here is an idea. use a portion of that 800 to 840 k to secure the loan. put the amount you want to borrow in an account at the bank you want to finance the mortgage through. put the funds up for collateral. if the bank asks why you don't just pay cash, your simple answer is that you wish to rebuild your credit and you want to keep your money safe and secure. you will not have access to this money set aside as it is collateral, but you still own it. in doing this, you can rebuild your credit thru making your payments on time and refinance when your credit situation is better, then freeing up the money you have set aside as collateral.