How Can You Get Capital for Real Estate Without Using Personal Credit?

[Shahab Ahmed Qasim Smoqi]

Hey everyone,

I’m new to real estate investing and currently based in Dallas (Irving). I’m working on building my credit history, but in the meantime I’d love to understand what capital options exist for investors who don’t want to—or can’t yet—use their personal credit score.

Specifically:
1️⃣ What loan types or funding structures work without relying on personal credit (e.g., DSCR loans, hard money, asset-based lending, private money partnerships, etc.)?
2️⃣ What are the pros and cons of each approach?
3️⃣ Are there any lenders, groups, or communities you recommend connecting with for these kinds of deals — especially around DFW or nationwide?
4️⃣ Any tips for building credibility or trust with private lenders when you’re just starting out?

Would love to hear how some of you funded your early deals creatively before you had an established credit score.

Thanks for sharing your experience — every insight helps a ton!

— Shahab
Irving, TX

[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.