Advice on purchasing first investment property

[Dylan D.]

Hello everybody this is my first post so I hope this is in the right spot, just looking for some advice or suggestions on my situations. So here's my story I am currently looking to purchase my first of hopefully several investment property's I purchased my first home that I occupy almost a year ago I bought this house with a conventional loan and 35% down, I have a decent paying job and my credit was spot on when I bought this house, so a year has passed and I'm ready to try an buy an investment property when I find out that my credit has tanked due to a few medical bills that have went into collections and no bank will approve me. I have enough cash to make a cash deal (roughly 70k) however I'm looking to spread this out over several properties. So my question is what kind of options do I have I am getting my credit resolved however this could take a while before any major changes are made.

[Brandon Sturgill]

Dylan, I would dissent from the group and say get your credit sorted out. I understand the desire to invest, but resolving your credit is paramount if you are going to have a successful career investing. Use a portion of the cash to negotiate with the creditors and settle for the least amount possible. Or, enter into a minimal payment plan with them...it will start reflecting positively on your credit. Your bills will not go away, promise. Set a goal to buy that property in the next 6-8 mos. 

In the meantime, you will have better luck working with a portfolio lender on an investment. If you are in central Ohio, Union Savings has good portfolio loan options. There are a ton of other options for investing with bad credit, but they carry a lot of risk if you are not experienced. (wholesaling/ wholetailing/ seller-financing/ sub-to).