How to purchase first rental w/out credit

Question

David Dachtera · Answer

@Val Gil,

I'd recommend learning how to attract and engage private lenders. Once you get rolling with it, you'll probably find more money than you can find deals for.

With all the dire sooth being said about what's on the horizon for Wall Street, a lot of folks will be looking for safer places to park their retirement money, even short-term.

Val Gil · Answer

Thank you! I will look into the suggested methods:

1. Seller financing

2. Joint Venture

3. Hard money lender / Private

In the meantime, I'll continue to save more for the second downpayment and repair my credit. My uncle is luckily a mortgage broker and has a ton of experience in credit repair so I'm going to see him tomorrow! Im really trying to avoid taking partnership with someone merely for their credit if possible.

I appreciate the suggestions!!! Thank you

Christopher S. · Answer

@Rosston smith

@Bruce Palomar

Regarding  your response to Val Gil and hard money/private lending.  I am in a similiar situation with credit.  Are these lenders looking at the deal and ltv or money down?  Do they finance renovations in the deal or does the borrower come up with too?

Rosston Smith · Answer

I would try-Hard money lender-Co signer on your loan-Speak with multiple lenders. I'm sure there are a few out there willing to work with you since you have the down payment money. Credit history is important as well.

Shawn Ackerman · Answer

@Val Gil have you nailed down a specific market/area?  I'd suggest seller financing however at some point you will have to refi out of the seller carry back.  You can look at asset lending platforms like B2R financing and see if they could assist.  If private money is an option, take advantage of it.  Otherwise as @Chris T. suggested work with someone who can get approved for a loan while you secure the capital. Good Luck!

Bruce Palomarez · Answer

You can use a private/hard money lender. They typically do not use your credit but they do cost you a lot. I suggest looking more into this route if you don't want to depend on your credit report.

Chris T. · Answer

You can do a JV with someone with a good credit.