Hey to all fellow BP members. I wanted to ask for help in structuring my first deal. I have a deal in Staten island new York. This is for a 2 unit MF property that will need rehab. I wish to purchase this property to use the BRRR Strategy. I spoke to the owner and we agreed on a price of 265k. I have the down payment and have the Rehab money as well. My problem is that my credit is no good and i have the money in cash. Since this is my first deal i am inexperienced with the financing side of investing and don't want this to keep delaying me from starting my journey as an investor. I am reaching out to my bigger pockets fam to see if any one can guide me to the best solution to my obstacle, I am so excited and prepared for this journey and I would not like to loose my opportunity at this deal.
Do you plan on living in the property? You might have a better chance getting financing even if your credit is not the best if its an owner occupied property.
Exciting time to purchase your first property. I recommend you to speak with several mortgage brokers and local community banks regarding getting financing. There are some lenders that would do hard money loans (higher rates and high up front fees) that would do non-recourse loans and they would not care about your credit score. As far as down payment, you can deposit to your bank account or give it to your friends/relatives who need cash and they would write you a check ( i believe every person can gift up to $13k a year). Also, work on your credit, you can find credit repair companies that usually charge about $100/month.
@Dmitriy K. Thank you for your response and your absolutely right i should not let this obstacle delay me any longer. I’m already working with a credit company fixing my credit. I think i will have to go the route of creating a limited partnership with some one with great credit because i would not want to get stuck with out being able to refinance due to my lack of credit. As soon as the property is rehabbed and rented i would like to refinance.
Need to get your score up to 620 and you will be eligible for an FHA 203k loan. Message me if you have any questions about the program or need a preapproval.
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