New to Real Estate · Youngstown, OH · Member since 2021 · 18 posts · 10 votes
Hey everyone! I am just starting out and I want to wholesale but also at the same time look for rental properties. The only thing is, I don't have much credit history (about 7 months of credit history) and I have been in my job at the moment for about 8 months now. So my question is if I go to a lender and ask them to help fund me the deal. Will they look at my work and credit history and say no? Or do they just try to see if the numbers fit and they like it and they will do it? I just want to see if I should wait little longer to do rentals or could I hop in now? Thank you guys!
Rental Property Investor · DFW, TX · Member since 2013 · 953 posts · 910 votes
5y
@Jesus Cordero Its easy. They want money. And they want proof that you will have the ability to repay via a track record or collateral i.e. property value. If you dont have either, they will turn you down. Simple
Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
5y
@Jesus Cordero It depends on the lender but the VALUE or FUTURE VALUE of the property plays a big part. Lenders only care about risk and numbers. They are not real estate investors. They don't want to foreclose on properties people can't afford. Conventional loan rates are historically low right now. Aim for that if you're new to investing.
If you talking HML they look at the numbers and need to know your plan. They base the deal and loan terms from previous projects (flips, rentals, partnerships, etc.) aka experience. This is not a cheap loan because the risk is higher and the money comes quick. The deal needs to stay on budget and I on time and eventually get refinanced into cheaper money.
Rental Property Investor · DFW, TX · Member since 2013 · 953 posts · 910 votes
5y
@Jesus Cordero Its easy. They want money. And they want proof that you will have the ability to repay via a track record or collateral i.e. property value. If you dont have either, they will turn you down. Simple
Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
5y
@Jesus Cordero I am not a lender. Contact a local bank or CU to get pre-approval for a loan. I would avoid HML if you don't have much experience. You need to fund the rehab. Ask the family, friends, or find a partner that understands REI.