It’s challenging to buy investment properties when you have bad credit, as bank loans might not be an option. However, depending on other aspects of your situation, you may not be entirely out of luck. We’ll cover some other options that you can look into to determine what is best for you.
Consider Repairing Your Credit
It’s always a good idea to look at your credit and see if there are any mistakes. Also, you could consider working with a credit repair company who has insights into what you can do differently to raise your score. Even if you manage to bump your score up a few points, it can sometimes be enough to put you in the running for a loan.
Look at a Partnership
If your credit is too low for the above method, there are other options. One of these is forming a partnership with another individual. That person will bring in the money required to purchase real estate, either in cash or a loan, while you do the work.
Utilize a Hard Money Lender
Hard money lenders are people that lend money on their own, without regulations or policies. Because of that, they can lend to anyone they would like. Credit scores often mean much less in these situations, as the lenders just want to make sure they get their money back quickly.
Crowdsource the Money
Another option is to crowdsource the money. This is becoming more popular in the real estate world, so you’ll hardly be alone. You build a campaign which others can invest int. Once the deal is reached, those people get a return on their contribution.
Wholesaling requires no money, but it does require a lot of networking. If you’re charismatic, it’s worth a shot. You essentially find a seller who wants to get rid of a property but hasn’t listed. You then find a buyer for the property and receive a percentage of the sale price.
Contact Us to Learn More
At Legacy Capital Lending, we know your business is essential to you. If you are looking for ways to get involved in real estate and need a boost of capital, get in touch with us. We’d love to explore your options with you.