Hey everyone. I just got my first house and, of course, I have a mortgage on it. My mortgage is so new that it hasn't showed up on my credit report yet (at least not according to Credit Karma). I would like to start investing in real estate as soon as possible and I am really interested in doing this via house flipping. In order for me to buy yet another house, I would have to take out some sort of loan (my credit is pretty good so I was thinking of just going through my bank; the Hard Money Loans kind of scare me).
I guess I'm a bit fearful about borrowing another large sum of money. I read that my credit is going to take a bit of hit temporarily due to the new mortgage and I know that I will have to take out a loan to start flipping. I would like to start flipping as soon as possible, but would it be better for me to wait about a year before I take on another loan? If I want to borrow from my bank, wouldn't I need my credit to go back up? Am I confused in the way mortgages and loans affect your credit? Help!!
welcome to bp @Sharaya Rutherford
if rehab/flip is your calling then do 1 of three things
find a partner to help fund the deal
market for a creative deal or
just borrow the money like you said
@Sharaya Rutherford - Can you tell us a little more about the details of your current financial situation? What is the mortgage on your current home, what do you make, what are you looking to invest in, etc.
That will allow us to provide you with a more accurate response.
You mentioned fear regarding hard money. While I agree hard money can be expensive, so can fear. Are you going to allow fear to stop you or are you going to take action in spite of fear? Choice is yours.
In real estate, there are many roads to get to your destination and in the lending arena, you have a basket full of options. I have excellent credit yet I have not used it but for one deal in the last 5 plus years. I did that by using optional lending resources available to me.
Waiting a year is NOT in my opinion a good idea deal start now and your starting point is education.
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