We keep hearing from real estate gurus on how to buy investment property with bad credit. Just to find in the end there’s a program you have to buy without them come out and spill the beans for you. Dancing around the subject for an hour or more without any information that you’re looking for. Because there’s a class or a program they want you buy at the end of the lecture. Don’t you hate that! So how to buy investment property with bad credit?!
For most people, a house can be a costly acquisition. Chances are, the house you live in is one of the biggest purchases of your life. And the real estate investments you acquire may not cost as much but it’s possible that you might be thinking about using loans and mortgages to buy those investment properties.
You might be wondering, like a lot of investors, how to buy an investment property with bad credit for savvy investors in Pensacola.
Fortunately, there are at least 4 simple ways to acquire investment properties even with bad credit.
These 4 Ways Describe How To Buy Investment Property With Bad Credit For Savvy Investors In Pensacola
Strategy #1. Use the money you already have. Many investors have money they may not even realize. For example, you might have equity in your home or business that you can borrow against, which you might not need an additional loan. Or you might have money in your IRA or 401(k) that you can invest with. Few people realize that this is even possible – but it is!
The bank won’t give you as near as what you would get from the return investing in real estate. The banks are jokes. They take your money just to give it to someone else for them to make more money from the interest they get, and guess what? You get nothing.
Wait, it gets even worse. If you deposit cash money in the bank. You get charged for giving them money. And then, they charge someone else to give him your money!
The only way you can make money from the bank is by getting a loan from them. Give them their interest and buy real estate with that money to earn more money from your real estate investments than the interest you pay the bank. This is the definition of cash flow.
If you want to talk to us about how to invest with your IRA or 401(k), just give us a call at 850-861-1326.
Strategy #2. Use seller financing. Seller financing is when you acquire a property but instead of getting a mortgage through a traditional lender (like a bank) you instead get financing from the seller themselves. You simply pay the seller your “mortgage payment” every month until the house is paid off. The seller may not require good credit because ownership of the house would revert back to them if you default on your financing.
Strategy #3. Partner with another investor. One very common strategy is to find another investor who has good credit and then partner with them. You combine their good credit with your skills, sweat equity, network, or some other contribution, and you split the cashflow between you.
Strategy #4. Find a cash buyer. This is an advanced way if you’re looking how to buy an investment property with bad credit for savvy Pensacola investors. A cash buyer is someone who has access to the money right now, perhaps sitting dormant in an account or maybe in one of the ways described above, such as in an IRA or 401(k). In some situations, you can acquire a property and then sell the property to them without using any of your own money (this is sometimes called “wholesaling”).
There are other ways, too, but this is a great way to invest in real estate even if you have no credit.
Summary: How To Invest With No Credit
No credit? No problem. Real estate investing is one of the ways that you can invest even if you have no credit or bad credit. You just need to get creative, connect with the right people, and put deals together in different ways than you might be used to… but credit is not needed.