Specialist · Pittsburgh, PA · Member since 2017 · 54 posts · 12 votes
Feeling frustrated about my situation. My credit is below 600 and I’m full time with real estate. I’m from Dallas Texas but I moved to a quiet town in Ohio.
The homes here start at 4K and the value can be ridiculous on them the issue is this is a buyers market and with proper funding you can remodel homes and put pipeliners in them.
The jobs are plentiful here if you like that type of work but there’s a huge demand for investors here.
What can I do to get funded and start making serious cash?
Rental Property Investor · Cleveland, OH · Member since 2016 · 653 posts · 769 votes
8y
@Fred Heller you're on the right track. The legality of wholesaling in OH is questionable and I know it's been debated heavily on the forums.
But aside from that, if you're willing to put some sweat equity into a 4k house then you can make it happen. Might need a HML, but if you're full-time then you should be able to find a way. A buyers market is not an issue if you're an investor :)
Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
8y
If you want to build up your credit and some cash, have you explored wholesaling? It's a good way to learn the market, the business and meet other investors. In my opinion, unless you have great credit and/or a pile of cash, it's really tough to get a start in real estate. You can house hack, but you might not get great terms on a traditional mortgage.
There are tons of threads here on wholesaling, and you don't need cash or credit to do it. Might be worth a look to get your feet wet.
Rental Property Investor · Cleveland, OH · Member since 2016 · 653 posts · 769 votes
8y
@Fred Heller you're on the right track. The legality of wholesaling in OH is questionable and I know it's been debated heavily on the forums.
But aside from that, if you're willing to put some sweat equity into a 4k house then you can make it happen. Might need a HML, but if you're full-time then you should be able to find a way. A buyers market is not an issue if you're an investor :)
The question of low credit scores comes up often. Many in the position of having low scores feel that real estate is a method that can be used to "fix" their life situation. The reverse is in fact the case.
You should buckle down, get a good paying job and diligently concentrate on both saving money and getting your credit score into the high 700s.
To be successful you must have good money management skills and habits. A low score is a indication that you may possibly lack the necessary skills and determination required to be successful in business. Those of us presently investing understand that protecting our credit score is priority one.
Fix your personal life then you will be better positioned to move forward.
Rental Property Investor · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
8y
@Jonah Wilson I agree with @Thomas S. comment. Although it is frustrating to be in a financial bind with a bad credit score, your #1 priority should be to increase your income and fix your credit score. Please, don't follow the "gurus" who will tell you take buy 4K houses on your credit card or who promise that you can get rich overnight. That doesn't happen in the real world (or else everyone would be a multi-millionaire).
Have you started attending your local real estate meetups? The ones that are not gimmicky/selling oriented can be a great place to meet local investors, develop a great network and learn more about the business. @Joshua D. has created an amazing product in Bigger Pockets. You can get 99% (in some cases, 100%) of your education for free with a community of supporting individuals.
In summary: focus on increasing your income/credit score, start attending local real estate meetups for networking (make sure to always look/talk professional) and focus on educating yourself. The rest will follow.
Specialist · Pittsburgh, PA · Member since 2017 · 54 posts · 12 votes
8y
I built a business with my wife of 10 years and she decided to go her separate way and took everything with her, that was worth having. Before that I've always worked with my father at our funeral home and after he died in 2016 his new wife took everything that he had. I lost everything due to lack of payments, my car , home, dog, guns, etc. amongst other things that put my credit in this situation.
I've considered working for a broker after finishing my license course to save up money. I'm an "office worker", not labor type but I live in a pipeliners territory. I see wholesalers use other peoples money in real estate but they are not willing to share, for free. ( if anyone is actually interested in paying it forward and I would be more than grateful.)
I have deals under contract that some "dream makers" backed away from. Its real money to be made here. (Just for example, I have a deal right now that less than 1/4 miles from the mall. The ARV is 112k, repairs are between 15k-22k, I have the seller satisfied with 30k, my end buyer was willing to pay 40k because he specifically asked for this area but now "the street is too busy". Thank God the seller has someone lined up to do a land contract just in case I cant get funded.) I can get deals all the time and I get tenants all the time. The population growth isn't like a big city so getting rich will take a few years but its worth the extra