How to get started in real estate with bad credit?

Question

Hello, I am new to bigger pockets. I am here to find answers on how to go about starting real estate investing. My goal is to own multi family homes,  I am considering starting by purchasing a duplex, living on one side and renting out the other. My problem is I do not know how to get started, I have bad credit and do not qualify for loans. Should I focus on fixing my credit before getting into real estate investing?

Saul Lechuga · Answer

Thank you very much for the feedback, it is really helpful!

David Espinosa · Answer

Once credit is good enough then go after a property. You can use a fha loan to get low down payments and you can get upto a four-plex. There are some down payment assistance programs as well. Also you can have as low as 580 fico score and still get a loan at 3.5%.

David Espinosa · Answer

I would say focus on building your credit and relationships.  Try cutting expenses and paying off bad credit. You can enter the REI world by going to meetups or applying for jobs related to real estate in general. Help people do things that they don't want to do, like driving for dollars. You can free up someone elses time and maybe they will throw you a bone if they close on one of the properties use gave them info on. Do a bunch and then ask if you can help or sit in on a negotiation. You can offer services to a flipper like cleaning out garbage from properties or stuff like that. Show people your serious and work hard and it can take you a long way.