Starting out where should my credit score need to be?

4 Replies

If you're planning to use HML or private money, @Monica Bowers , it doesn't really matter. They care about the deal and your experience. Now if you have a foreclosure or bankruptcy or something else really bad on your credit report, that would be a red flag for any lender. For more conventional financing, you'll have to probably be in the high 600s or better.

Originally posted by @Monica Bowers :

I’m currently working on my credit what credit score do I need to have in order to start real estate investment? I want to flip and rehab.

Call a local mortgage broker and tell them what you want to accomplish. There is more to it than just credit score. There is also debt to income ratio, time on the job, how much you want to borrow, how much you have to put as a down payment, bank returns, tax returns) and they can tell you how you can get ready for your purchase.


As others eluded to, you don’t need credit to start in this industry, but a good score certainly helps and a good score is 720 or better in the conventional financing world. The greatest thing about real estate investing is that we can get as creative as our minds will allow as there are many, many ways to fund a deal. No credit? Get a money partner, private lender, hard money lender, or seller financing. You can buy sub2 as well.

All that said, credit is a small part of the transaction, your education, experience, knowledge, team, and abilities all will factor in. It is important to have funding lined up as it is important to have your team lined up too before you go under contract with a purchase.