Homeowner · Atlanta, GA · Member since 2008 · 14 posts · 0 votes
I have bad credit, but I own my home free and clear. Also, my work history is none because I was laid off in April. I'm now self-employed, and applying for jobs now.
Thing is, I have 2 deals I'd like to take advantage of. Both properties cost way less than what my home is worth. They also don't need any work really. One is absolutely move-in ready and the other just needs carpet.
What are my options? A loan officer told me I can't use my house as collateral unless i've owned it for 2 years... That doesn't sound right to me.
Any help?
Or should I just find someone that can qualify and pay them to use their credit?
You've got lousy credit and you can't prove income. Borrow my credit? Not for any amount of money. Sorry.
Maybe if the houses are a really good deal, you can find a partner who has some cash.
Better yet, put an option on them and assign the contracts. Save the profits from both of them and use that money as a down payment on your next deal.
Once you've got down payment money and a track record of making money on your deals, you should be able to find private loans, if the deals are good enough.
Even smarter would be to take the profits from the first two and fix your credit (that means pay off your debts). Good credit makes real estate investing easier.
You've got lousy credit and you can't prove income. Borrow my credit? Not for any amount of money. Sorry.
Maybe if the houses are a really good deal, you can find a partner who has some cash.
Better yet, put an option on them and assign the contracts. Save the profits from both of them and use that money as a down payment on your next deal.
Once you've got down payment money and a track record of making money on your deals, you should be able to find private loans, if the deals are good enough.
Even smarter would be to take the profits from the first two and fix your credit (that means pay off your debts). Good credit makes real estate investing easier.
Homeowner · Atlanta, GA · Member since 2008 · 14 posts · 0 votes
16y
As I mentioned I have enough for a down payment. Clearing up my credit? That's a no-brainer, the problem is it's fraud. Someone took a loan out in my name a few years ago and I've been fighting that for years now.
Okay, so I was on the right track. Honestly, the deals are so good my concern is the partner I find may just steal the deal from under me. How do I protect myself from that?
Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
16y
There are legitimate credit repair places to help you out with that. I am sure an attorney can help as well.
If you have contracts and are worried about people stealing the deal you can always record an option with the county or some other documentation showing your rights per the contract. Talk to an attorney about what is best.
Private Financing Consultant · Honolulu, HI · Member since 2010 · 132 posts · 27 votes
16y
Self employ for a short time and no documentable income will be your most challenge for owner occupied home, and more so for investment even if you have good credit.
Finding a partner you have to consider how you compensate the partner and how much control you are willing to give them in the property. After all, it may not even be a good deal at all.
If those houses are such a good deal, why not considering selling your current home and pay cash for both?