Mortgage with bad credit

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Hey guys I wanted to know if there are mortgage companies out there that will fund rental properties (vacant or occupied) to investors with bad credit. If so who are they? What may be the set backs dealing with such companies. 

     I write the following paragraphs under the assumption that the bad credit investor has some track record wholesaling and/or flipping. If not, he/she should start by getting some good wholesale deals assigned! This does two things. First, it helps find out what is a good deal. If you're getting assignments like crazy and no one is buying them, probably not the best deals. Second, when good deals do come up before the investor has a large buyers list, other wholesalers will be more than happy to co-market a great deal. This will greatly help with networking as the bad credit investor builds up some cash. 

      Realize that a credit history is a reflection of one's ability to repay debts in the past, and most lenders will use this as a forecast of the investor's ability to repay in the future. With that as a given, most institutional lenders will be restricted from lending to someone with bad credit. That leaves the investor with small banks and private money, which I detail a little in my profile. 

     Without good credit to guarantee the loan, it becomes important that the equity in the property provide sufficient security to close the deal. Private money will be hesitant, but willing, to go in on a great deal with an investor with bad credit. Get a good deal under contract, and there will be plenty of established local investors that will be more than willing to co-wholesale it. Some may be willing to bring in money. 

     The risk is that the investor with bad credit will have to find a great deal, rather than just any good deal that most investors can get funded. The risk is the same faced by any deal, and that is the lender coming after the asset in the event of default. With private money and bad credit, the investor should be prepared for very strict terms. 

     Find a great deal and the money will be there. I promise. 

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