Funding Deals with Bad Credit + No Reserves

[Deborah Wodell]

I’d love to hear from other lenders and brokers on this...

How do you handle it when a borrower brings you a deal that looks solid on paper—strong ARV, low purchase price, great location—but they've got:

🔻 Credit in the low 500s
🔻 Zero reserves or liquidity
🔻 And no real track record

Do you consider the deal itself and try to structure something creative? Or is that usually where the conversation ends?

I know we all want to help people get started—but also have to protect the capital. Just curious how others walk that line.

Would love to hear your thoughts, insights, or stories (good or bad).