Finance for buy and hold investing

5 Replies

Hey guys, A problem that I have ran into is that I had my credit ran about 5 months ago when I was trying to close on a duplex. Now when I find another deal I like in order to close I will have to run my credit again because it has been longer then 4 months, is there anyway to go about this so the inquiry doesn’t hurt my credit? Thanks!

No, figure about 5 point hit on your FICO

The financing I get from my lender is once a year for a credit check.  I’d suggest shopping around for lenders or at least look into commercial lending if you aren’t already using it.

The credit check doesn’t hurt your credit too much I wouldn’t be concerned in your situation with only two checks.

When I had my credit check it affected me by lowering my credit 5 points. If you have high credit, such as 760 or higher I wouldn't be too concerned. If you're right at 740 or so, I understand your concern because that's generally the best interest rate cut-off.

I echo what everyone else is saying. About a 5 point hit that doesn’t drop off for about 2-3 years. I purchased 2 buy and hold Properties 2 months apart this year and the bank still had to run my credit since it had been longer than 30 days. Above 760 you should be fine, otherwise look at your report and see how you can bring it up.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here