Minneapolis, MN · Member since 2020 · 1 post · 0 votes
Hi everyone! Are there good alternative ways to acquire real estate deals with no Fico score? I'm 20 yrs old looking to invest in RE in the near future. What's stopping me right now is mainly lack of capital. It seems like every single person I know and don't know, tells me that in order to get and buy great real estate deals I need an excellent FICO score. How true is this? I manage my money well. Don't have any debt. I've never had any credit cards, never really plan on or see the need in having any. The only time might consider some is for business cashback, although to apply for most of these I need a credit score as well. It does really seem like a debt trap cycle for the "little man" to me. What are your best and worst methods to invest in re without Fico score? TIA for all your input!
Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
5y
Wholesaling is very popular for folks starting with low capital/credit. It's a very active strategy and can help you build capital.
I've never needed credit cards per se myself, either, but they are a way to build a credit history. The big mistake people make is buying things they can't afford and carrying a balance. That's where the debt starts to snowball. You're totally right that it is a trap that far too many people step into. Never buy anything you can't afford, and pay off balances in full every single month.
Investor · Columbus, MT · Member since 2013 · 1k+ posts · 1k+ votes
5y
@Stanislav Sagan
Well I'm proud of you for showing discipline in the face of a consumer credit crazy culture. You are a rare smart 20 year old.
However, just because people go crazy with consumer goods and their credit cards, does NOT mean that credit is a bad thing. I would really encourage you to read Rich Dad, Poor Dad. It will help you understand this concept better.
To answer your question though. There are a few ways you can get into realestate world without credit or money. But all of them will be jobs and not really investing.