Found a property i saw on Zillow that's for sale.
The property is a duplex here in Lewisville Tx & definitely needs work. I haven't made an offer yet simply because i have no money(to buy or fix it) and not the best credit.
I'm also assuming the house is by agent and I'll definitely fail their screening test.
What are some ways i can acquire this property?
I'm looking to rent it out.
You can house hack it. If you have credit up to a certain level, most counties do down payment assistance and have other kinds of grants that promote homeownership for people who don't have a lot of money of the greatest credit. FHA loans are geared towards people like this.
If you are just looking to purchase and hold as an investor, then having no money and no credit are two things that make it very difficult to acquire property. Find a partner that has both and go from there.
Depends, do you have anyone in your inner circle who could lend you the money for a down payment or cosign the mortgage? If you do, maybe you could form a deal with them - you rehab the property if they help with the purchase.
Ask the agent if the owner owns the property "free and clear" and "if they would be open to owner financing". If they don't then, you will need to put a mortgage on the property. If you choose to "House Hack": with your partner, get an FHA203k (3.5% down payment, with renovation money included), ask for the maximum amount of "seller concessions" (state depending) and purchase the property. You'll have your closing costs covered and you put little down. If you don't choose to "House Hack": then you and your partner need to come up with 20-25% for the down payment.
Us Real Estate Agents are pesky people (evil depending on who you ask). Try asking him/her to be your agent on the transaction. They might try "extra hard" to make the transaction work, especially when there is twice the amount of commission on the line. It's also a good to see where their loyalty truly lies.
Find an agent in your area. Preferably one who specializes in investments and works with investors (In most cases its FREE to work with a buyer agent because commission comes from the listing side at least in TN thats how it works) Thats your first step according to @Joshua Dorkin and @Brandon Turner . And i would have to agree. If they are good at their job they will get you on the path you need to be on to get you REI started.
They should be able to direct you to a solid lender. Make sure to tell them (agent and lender) your situation too. Not best credit, No money, etc.... and like I said, if they know the right people they will be able to direct you to the ones that can help you in your situation.
I have a a client who has NO credit at all and I have a lender that has a loan program for people with no credit. I have another client who has no SSN so I directed him to a different lender who has a loan program for that situation.
Quick ways to find a solution around the "not best of credit" and "no money", find a Co-Signer or partner like others have mentioned.
But if I were to go in on a deal with you I would want to see a pretty dang good presentation of why I should. Know your numbers and have a game plan that makes sense when you show other people.
House Hack! If you know what that is than you know if it works for you, if not look it up, its a great way to get started in REI.
Just a few things to get you rolling man. Best of luck. Feel free to hit me up with any questions happy to help.
You need to position yourself to be successful. Work hard, take on additional work, live a conservative life style, change your habits and circle of friends, save money and concentrate on getting your credit up into the high 700s.
To be successful you need to modify your life style. Until you are successful at improving your personal life situation you are not positioned to move forward with investing.
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