No capital bad credit

17 Replies

I want to become an investor(all types). Current barriers- no cash and credit is in the 500’s. Currently in the Memphis area. Aside from hard money loans, I am at a loss where to start. Seasoned, in between, and newbies I welcome your opinion. Thanks.

Shun, 7 years ago I was in a similar situation. I had lots of debt, no cash and credit that was in the low 600's since I had maxed all of my credit cards out. I worked out of the situation by doing the following.

  1. Fix your spending. List ALL of your living expenses. Then RUTHLESSLY go through them and see what you can cut.
  2. Cut all of the unnecessary expenses and re-look at your monthly income versus expenses. Start paying down your debt aggressively every month. Give things up, sacrifice.
  3. Find a way to earn more money. Can you learn additional skills? Can you work extra hours? Can you find a better paying job? Hustle. Hustle and hustle. Don't accept failure, it can be done.
  4. After doing the above for a couple years (less if you really get after it) your credit will improve. Then you can buy a 2-4 unit building, live in one unit and cut your monthly expenses by living in it. This will really accelerate your debt pay down and opportunity to invest in Real Estate. Coming up with a down payment doesn't have to be hard. Save a little money every month and look at borrowing from a 401k or any other source you have to get the down payment. 3.5% down on a $100k property is only $3500.

Overall you first need to get on level ground with your finances. Be honest with yourself, and start making things happen. Remember, things in motion tend to stay in motion.

Hope it helps.

Erik,

First thanks for your reply! This seems like a reputable sight to gain knowledge from and I plan to learn as much as I can on here!  This is what I worked on for the past 9 months. Moved back in with my parents so I have no bills other than car note and phone. I only buy gas and food. That’s it!  Nothing else and I mean nothing. Problem is I have things in collections due to losing my job because prior my credit was nearing 700. Got a new job so working my way back up you know? In addition,I’m working on paying those down as well (even though it won’t necessarily help raise my credit-per Experian). Still I want to do so because I believe in paying these things on time. 

Oh and yes I’m finishing up my degree and will be done at the end of the year. I like your last points about purchasing a building then living in to cut expenses. Again I’m working toward everything you said and oh giving up is OUT of the question! Thanks again!

second job.. while your finishing up your degree you can get your RE license its cheap.. then work on the weekends doing open houses etc.. get on a high producing realtors team.. earn while you learn.. 

lots of things you can get paid for without credit and cash.. just need the drive .. good appearance.. be punctual and professional.

@Account Closed I was in a very similar predicament. I signed up with a Company called Rising Point Solutions (Kelly). They educated me on what I needed to do and not do and helped remove the negative items that weren't mine off my credit report. Which increased my score. They also helped me re-establish my credit. If you contact them tell her/them I referred you. 

@Account Closed You don't need credit or money. What you need is a deal. The first thing to learn is what a deal looks like in your area. Learn how to calculate ARV and ROI based on rental income. If you have a deal, you can sell it. Finding a deal in this market is hard, which is why it is valuable. Until you know what a deal is, the last thing you should do is borrow money to buy something. Hard money lenders will loan you money, but only if the deal is good. Learn to find a deal.

First, thanks to everyone who has responded! James, im paying off my car at the end of the year! So excited because that’ll be more I can have monthly! Anthony I love your comment. Definitely looking this up. It is going to take time but my work ethic and determination has always been my strengths. Keep the comments and recommendations coming . However like Erik and some of you stated  I have to do my part too. Someone else said working another job. Currently working and going to school now and just recently began interviewing with the potential to double my income so that will be my plan regarding that. 

@Erik Bood First thanks for your reply! This seems like a reputable sight to gain knowledge from and I plan to learn as much as I can on here! This is what I worked on for the past 9 months. Moved back in with my parents so I have no bills other than car note and phone. I only buy gas and food. That’s it! Nothing else and I mean nothing. Problem is I have things in collections due to losing my job because prior my credit was nearing 700. Got a new job so working my way back up you know? In addition,I’m working on paying those down as well (even though it won’t necessarily help raise my credit-per Experian). Still I want to do so because I believe in paying these things on time.

Originally posted by @Shun Coleman:

@Anthony Dooley you make it sound so easy! My determination and grit is going to help me learn this! Thank you!

 It isn't easy, but it is simple. Best of luck.

@Account Closed You came to the right place to learn. Jay gave you good advice. If you're going to work, work in a field that is realted to real estate investing. It can be as an agent, in construction or development, etc. Anything you do to learn the business and move the ball forward helps. 

Real estate investing requires an understanding of Business Law, Finance, Psychology, etc. so any of those classes you're taking with your degree will be helpful. 

In addition, try making a list of things you run across that you wish you knew more about, hard money loans, different types of property, etc. Then when you come on to BP you can focus on finding the answers and don't get sidetracked just wandering around. There's so many different niches, and so many people that share their knowledge on here, it's unbelievable. 

Good luck!! Also, please upload a profile pic. If for some reason you don't want your personal photo online, upload one that depicts something about your area, or ?