So I'm ready (mentally) to make my first multi family investment purchase, but what should I do first? I know I'm going to have to find some non-traditional help getting funded, but I feel my credit score will hurt me. I'm currently sitting between 624-644 FICO score (depending the info source). I am working on getting old negative items removed, which should bring it up drastically. Here is where I need help....
Should I wait for my credit score to come up? Or should I start working on putting together my first investment deal?
Thanks in advance for anyone who comments any suggestions.
You are going to need a lot more than a good credit score. That’s a really small segment of where you are trying to go. Sounds like you have a lot of work to do 🤪
@Joseph Turnquist great 4 U! Yes absolutely your score is too low for REI. Yes increase score FIRST. Then you will have freedom.
You do not need score and credit to wholesale but it seems your goal is bigger. So go big!
@Justin G. thank you for your input. I know I've got a long way to go and that it'll be a lot of work, but that's why I am here. Hard work has never scared me away from anything. You've got to start somewhere....
@Joseph Turnquist Hello Joseph.
1. Get educated. Where are you going to invest? What is your buying criteria? Do you have a team? What can you bring to the table? Do you have capital or will you be using OPM? Check out this site of free content.
Is the plan to buy with your own capital or raise capital. If it is the former, then work on the credit score, save up, and work on your education in the mean time. If it is the latter, you need to answer the question: "why would someone invest with you?" If you don't have a good answer to that question, brainstorm what you need to do in order to have a good answer. Start a thought leadership platform like a podcast or meetup group, do a few deals on your own (see my first point), hire a mentor/consultant, wholesale, birddog, etc.
Hey @Joseph Turnquist ! I agree with the comments given by both @Christopher Hunter & @Theo Hicks . To get the best financing, you'll want a better credit score for sure, but you don't have to "wait" until that happens to get started. Use the tools available to you to begin teaching yourself the ins & outs of REI so that you can answer some of the critical questions Christopher and Theo mentioned. As you begin to answer those questions, start analyzing deals. Learning how to effectively analyze a potential investment is essential to your success as an investor, and the more practice you have before you actually make your first investment will make it that much easier. You honestly don't need a great credit score to get started in REI; it's helpful but not necessary. You will be able to secure financing with your current credit rating but it will cost you more than someone with a better credit rating. You'll just need to factor that into your analysis when you are searching for your deals.
@Robert Saunders thank you for advice. I appreciate it.