How Can You Get Capital for Real Estate Without Using Personal Credit?
New to Real Estate · Irving TX · Member since 2025 · 21 posts · 15 votes
How Can You Get Capital for Real Estate Without Using Personal Credit?
Most Popular Reply
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
11moSet your goal on using your personal credit and cash. If you don't have any, figure out a way to generate that. Work 3-4jobs for a year. So work your 8-5 M-F for your basic W2 income, but pickup up a 2nd job after work for 5-6 hours and then get two more jobs on Sat/Sun. Bank up some cash. Get crazy about it. Rent as cheap as you can stand today, so maybe a cheap bedroom in someone elses home vs an apartment. I think you could easily save $50,000 a year doing this and maybe more. Set your goal to save $100,000 this year and if you fail and only hit $50,000 or $80,000, well you've failed in a great way.
There are all kinds of websites, youtubes, and groups around that will waste your time and money trying to to get you excited about using OPM or no money down or trying to buy Sub2. Is it possible yes, Is it probable, probably not. Most of these guys are selling dreams and classes vs success and long term investment success. I'm sure there are 1 in 100 or 1 in 1000 that have really worked the program and become a success at some point, but they are rare.
If you can't use your personal credit, I don't think you are going to easily and regularly find private money or asset based lending, things like that. Maybe you find family money, borrowing from bank of mom and dad, or uncles, relatives and friends and family. Some chance at DSCR but you'll need cash too. It's not probably going to cover 100% of the purchase and you can't live in it.
Credibility and Trust is built with accompishments....Keep a P&L and before and after pictures lets say on your first 10 flips. Want to speed up your flips but don't have enough cash, then you go out and start talking to private lenders. You have a great track record and they want to invest in you. Think about your money, does anyone ever come and ask to borrow money from you? What kind of return do you want? How do you evaluate the risk? What would make you comfortable lending to them.
Hard money is for flips and it is expensive money. You can't live in the property typically. It is short term money based on the asset. You can either look at the their websites for terms or call them and ask for term sheets or speak with them about borrowing and see if you can meet their requirements.
Another idea is go to work for someone doing what you want to do. Do that for a year or two and learn the system. Work like crazy. Be there at the job first and last. Learn everything you can. After you've done that for a couple of years, start talking to the owner about teaching you their system and investing more in you. There are plenty of people around the Metroplex that own 50 or 100 houses or more and they always need help doing something. You just have to find them and be willing to do what they need done and probably at very low pay.
6 Replies
- Member since 2025 · 10 posts · 2 votes11mo
The answers to these questions depends on your strategy...what are you trying to do?
- New to Real Estate · Irving TX · Member since 2025 · 21 posts · 15 votes11mo
Quote from @Sam Page:
The answers to these questions depends on your strategy...what are you trying to do?
Good question, Sam — I appreciate you asking that. My main goal right now is to buy my first small multifamily or house hack (2–4 units) here in DFW.
Ideally, I’d like to live in one unit and rent out the others, but I’m also open to other small-scale investments if the numbers work. I’m mainly exploring what options exist to get started while still building my credit — whether through asset-based loans, private funding, or creative partnerships.
Would love to hear your thoughts on what strategies might fit best for someone in that position.
- 11moAaron ZimmermanBusiness MemberAccountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
@Shahab Ahmed Qasim Smoqi are you not able to get conventional financing? Generally that's going to have the best rates and terms. Personally, I'd love more 30 year fixed rate debt
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- Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes11mo
Set your goal on using your personal credit and cash. If you don't have any, figure out a way to generate that. Work 3-4jobs for a year. So work your 8-5 M-F for your basic W2 income, but pickup up a 2nd job after work for 5-6 hours and then get two more jobs on Sat/Sun. Bank up some cash. Get crazy about it. Rent as cheap as you can stand today, so maybe a cheap bedroom in someone elses home vs an apartment. I think you could easily save $50,000 a year doing this and maybe more. Set your goal to save $100,000 this year and if you fail and only hit $50,000 or $80,000, well you've failed in a great way.
There are all kinds of websites, youtubes, and groups around that will waste your time and money trying to to get you excited about using OPM or no money down or trying to buy Sub2. Is it possible yes, Is it probable, probably not. Most of these guys are selling dreams and classes vs success and long term investment success. I'm sure there are 1 in 100 or 1 in 1000 that have really worked the program and become a success at some point, but they are rare.
If you can't use your personal credit, I don't think you are going to easily and regularly find private money or asset based lending, things like that. Maybe you find family money, borrowing from bank of mom and dad, or uncles, relatives and friends and family. Some chance at DSCR but you'll need cash too. It's not probably going to cover 100% of the purchase and you can't live in it.
Credibility and Trust is built with accompishments....Keep a P&L and before and after pictures lets say on your first 10 flips. Want to speed up your flips but don't have enough cash, then you go out and start talking to private lenders. You have a great track record and they want to invest in you. Think about your money, does anyone ever come and ask to borrow money from you? What kind of return do you want? How do you evaluate the risk? What would make you comfortable lending to them.
Hard money is for flips and it is expensive money. You can't live in the property typically. It is short term money based on the asset. You can either look at the their websites for terms or call them and ask for term sheets or speak with them about borrowing and see if you can meet their requirements.
Another idea is go to work for someone doing what you want to do. Do that for a year or two and learn the system. Work like crazy. Be there at the job first and last. Learn everything you can. After you've done that for a couple of years, start talking to the owner about teaching you their system and investing more in you. There are plenty of people around the Metroplex that own 50 or 100 houses or more and they always need help doing something. You just have to find them and be willing to do what they need done and probably at very low pay.
- New to Real Estate · Irving TX · Member since 2025 · 21 posts · 15 votes11mo
Quote from @Bruce Lynn:
Set your goal on using your personal credit and cash. If you don't have any, figure out a way to generate that. Work 3-4jobs for a year. So work your 8-5 M-F for your basic W2 income, but pickup up a 2nd job after work for 5-6 hours and then get two more jobs on Sat/Sun. Bank up some cash. Get crazy about it. Rent as cheap as you can stand today, so maybe a cheap bedroom in someone elses home vs an apartment. I think you could easily save $50,000 a year doing this and maybe more. Set your goal to save $100,000 this year and if you fail and only hit $50,000 or $80,000, well you've failed in a great way.
There are all kinds of websites, youtubes, and groups around that will waste your time and money trying to to get you excited about using OPM or no money down or trying to buy Sub2. Is it possible yes, Is it probable, probably not. Most of these guys are selling dreams and classes vs success and long term investment success. I'm sure there are 1 in 100 or 1 in 1000 that have really worked the program and become a success at some point, but they are rare.
If you can't use your personal credit, I don't think you are going to easily and regularly find private money or asset based lending, things like that. Maybe you find family money, borrowing from bank of mom and dad, or uncles, relatives and friends and family. Some chance at DSCR but you'll need cash too. It's not probably going to cover 100% of the purchase and you can't live in it.
Credibility and Trust is built with accompishments....Keep a P&L and before and after pictures lets say on your first 10 flips. Want to speed up your flips but don't have enough cash, then you go out and start talking to private lenders. You have a great track record and they want to invest in you. Think about your money, does anyone ever come and ask to borrow money from you? What kind of return do you want? How do you evaluate the risk? What would make you comfortable lending to them.
Hard money is for flips and it is expensive money. You can't live in the property typically. It is short term money based on the asset. You can either look at the their websites for terms or call them and ask for term sheets or speak with them about borrowing and see if you can meet their requirements.
Another idea is go to work for someone doing what you want to do. Do that for a year or two and learn the system. Work like crazy. Be there at the job first and last. Learn everything you can. After you've done that for a couple of years, start talking to the owner about teaching you their system and investing more in you. There are plenty of people around the Metroplex that own 50 or 100 houses or more and they always need help doing something. You just have to find them and be willing to do what they need done and probably at very low pay.
Wow, I really appreciate that, Bruce — this is incredibly valuable and grounded. You’re absolutely right — most of those “no money down” or OPM programs sound exciting, but only a small fraction of people ever make them work.
I love your approach of focusing on building credit, stacking cash, and learning from people already doing it. I’ll take that to heart and start thinking long-term — even if it means grinding hard for a year or two to build real credibility and capital.
Thanks again for the straight talk — that’s exactly the kind of wisdom I came here to learn.
- Specialist · Member since 2025 · 483 posts · 270 votes11mo
Shahab, you've got options that don't lean hard on personal credit: DSCR loans underwrite the property's rent, not your income, but expect higher rates and a real down payment; hard money is fast and asset-based, great for bridge and rehab, but pricier and short term; private money is the most flexible if you build trust, set clear payback, and communicate weekly; partnerships work when you bring the hustle, deals, and ops while your partner brings capital. Quick plan: pick a tight buy box, line up one DSCR and one hard-money lender, start a private-lender list from your warm network, craft a one-page deal template with exit options, and attend 2 DFW meetups this month to meet lenders and operators. Lead with credibility: show your numbers, your team, your timeline, and how lenders get paid.
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