Flipper/Rehabber · Atlanta, GA · Member since 2013 · 18 posts · 13 votes
I have two rental properties free and clear of any mortages or liens with a combined value of $90,000. My problem is poor or "slow" credit. I have found a family member with better credit (750) that is willing to partner with me, he uses his credit or good name and I put up my properties. What kind of lender should we be looking for that would get us the best interest rate, on money, to fund our fix and flip deals?
Real Estate Broker · Orange, CA · Member since 2008 · 380 posts · 87 votes
12y
investment property conventional minimum FICO is 620 however most lenders set that at 640 so as long as any open derogatory items are taken care of/resolved you'll be good to go if you wanted to do this on your own.
Your partner would have to finance the properties,fund the loan in only his name then add you to title later.
Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
12y
I can't speak for flips, but for mortgages you'd have to be a silent partner, so to speak. May be the same for flip loans. i.e. your name no where on it, you give the money to your family member, he/she get the loan. Funds would have to be seasoned though.
Flipper/Rehabber · Atlanta, GA · Member since 2013 · 18 posts · 13 votes
12y
@Ed Wood - I don't know why I never thought of using some of the investment money I have to clear my credit and then doing the deals without a partner! Also I didn't know they had investment conventional loans they sound like they are extremely hard to get in this 'jump through hoops for finance market'. What kind of stipulations do they usually require along with the 620-640 fico score? ie.. debt to income 40%,Show positive cash flow,must hold the property for a year, things like that.
@Ali Boone - Are you saying any funds I give to my parter would have to stay in his possession for 4-6 months before we can make a move?