Question

9 Replies

How can you buy investment properties with bad credit and no money down. Properties like 4 plexes that are 80% occupied?

Originally posted by @Ricky White :

How can you buy investment properties with bad credit and no money down. Properties like 4 plexes that are 80% occupieOd?

Ok. How can a 4plex be 80% occupied?  Is that 3 occupied units and.......someone using the parking space for the other unit?  Sleeping in the doorway?  What's going on with the 5% occupancy rate on the other unit?

@Ricky White

If you have bad credit and limited finances, you have to be creative. Consider doing a partnership in which your partner supplies the cash and you do the work, and then you can split the profits. Another option would be to see if the seller would be willing to carry the financing, allowing you to purchase the property and provide them with steady monthly income instead of one lump sum of cash (on which they would pay heavy taxes).

There are also other options you can find in Brandon Turner's book Investing in Real Estate with No and Low Money Down. It's a great resource for creative financing, and could potentially be very helpful for you.

Hope this helps, good luck!

Originally posted by Kristine Marie Poe:
Originally posted by @Ricky White:

How can you buy investment properties with bad credit and no money down. Properties like 4 plexes that are 80% occupieOd?

Ok. How can a 4plex be 80% occupied?  Is that 3 occupied units and.......someone using the parking space for the other unit?  Sleeping in the doorway?  What's going on with the 5% occupancy rate on the other unit?

 There are 2 buildings with 4 apartments in each one all are completely occupied. 

Originally posted by @Grant Edwards :

@Ricky White

If you have bad credit and limited finances, you have to be creative. Consider doing a partnership in which your partner supplies the cash and you do the work, and then you can split the profits. Another option would be to see if the seller would be willing to carry the financing, allowing you to purchase the property and provide them with steady monthly income instead of one lump sum of cash (on which they would pay heavy taxes).

There are also other options you can find in Brandon Turner's book Investing in Real Estate with No and Low Money Down. It's a great resource for creative financing, and could potentially be very helpful for you.

Hope this helps, good luck!

 Thanks Grant that does help.

Originally posted by @Grant Edwards :

@Ricky White

If you have bad credit and limited finances, you have to be creative. Consider doing a partnership in which your partner supplies the cash and you do the work, and then you can split the profits. Another option would be to see if the seller would be willing to carry the financing, allowing you to purchase the property and provide them with steady monthly income instead of one lump sum of cash (on which they would pay heavy taxes).

There are also other options you can find in Brandon Turner's book Investing in Real Estate with No and Low Money Down. It's a great resource for creative financing, and could potentially be very helpful for you.

Hope this helps, good luck!

I can't get the book by Brandon Turner at this time.

Originally posted by @Brandon Turner :

Hey @Ricky White what seems to be the problem on getting the book? Order page is down?

 Have no income coming in at this time plus no credit cards. But when things do change I'm for sure getting the book

Originally posted by @Ricky White :
Originally posted by @K. Marie Poe:
Originally posted by @Ricky White:

How can you buy investment properties with bad credit and no money down. Properties like 4 plexes that are 80% occupieOd?

Ok. How can a 4plex be 80% occupied?  Is that 3 occupied units and.......someone using the parking space for the other unit?  Sleeping in the doorway?  What's going on with the 5% occupancy rate on the other unit?

 There are 2 buildings with 4 apartments in each one all are completely occupied. 

Still having problems with the math.  8 units all occupied is 100% occupied.....not 80%.

Finding a deal on an occupied MF is more challenging because the owner is receiving income and is often less motivated to sell.  That being said there are landlords that have challenging buildings or tenant pools that would gladly sell in order to receive income and not have to manage the property.  Find a building that has problems and make a seller financing offer to the owner that replaces their rental income.  

But first work on getting enough cash/credit to manage your personal finances. 

Originally posted by Kristine Marie Poe:
Originally posted by @Ricky White:
Originally posted by Kristine Marie Poe:
Originally posted by @Ricky White:

How can you buy investment properties with bad credit and no money down. Properties like 4 plexes that are 80% occupieOd?

Ok. How can a 4plex be 80% occupied?  Is that 3 occupied units and.......someone using the parking space for the other unit?  Sleeping in the doorway?  What's going on with the 5% occupancy rate on the other unit?

 There are 2 buildings with 4 apartments in each one all are completely occupied. 

Still having problems with the math.  8 units all occupied is 100% occupied.....not 80%.

Finding a deal on an occupied MF is more challenging because the owner is receiving income and is often less motivated to sell.  That being said there are landlords that have challenging buildings or tenant pools that would gladly sell in order to receive income and not have to manage the property.  Find a building that has problems and make a seller financing offer to the owner that replaces their rental income.  

But first work on getting enough cash/credit to manage your personal finances. 

 Thank you for the info. Sorry about not correcting and putting 100% occupied. This seller is motivated and wants to sell cause she is going to college and doesn't have time to run them.

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