Updated almost 6 years ago on . Most recent reply
House Hacking
I want to purchase a small property. Two to four units, and live in one while renting out the other(s). The problem is I don't have the best credit to get a loan, and I don't have any money to put down. I know it probably sounds crazy, but does anyone have any ideas on how I can get this done?
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Truthfully, you are in an unenviable position. Having money for the first deal is a really good way to develop some credibility. Credit scores are a different issue, as they definitely take some time to remedy.
The approach from here is usually to syndicate a deal with private money. Basically getting other people to invest in your project. As a private money investor, I would not invest in someone without a track record. As a result, your best bet will be a friends and family round. Think of people you know who could get in on the deal, provide real value, and try to put down some money (5-10%, whatever). A little bit of money clues everyone that you have skin in the game.
For many private investors, access to funds is not a problem. Trust is a problem. If you can provide that trust and really deliver, then you can make it happen.