advice for beginning real estate investor with bad credit and a low down payment.

[Shadrach Palatino]

Hello everyone,
I am interested in buying and flipping homes in the Tacoma Washington area. I have poor credit (which I am working on) and I was wondering if there are any investors out there that can give me advice on how to get into a foreclosure with little down and bad credit? I have over 12 years experience in the trades so doing the rehab isn't an issue.
Thanks in advance for your advice.

[Jon Holdman]

Originally posted by William Roberts:

Shadrach,
One option would be to wholesale the property to a local rehabber. This will build capital quickly. Design a plan and execute.

The underlying thought is valid. You need cash to be a fix and flipper. Sorry, doing this with none of your own cash is going to be difficult. And not as profitable as if you have some of your own money. Hard money lenders will fund these deals, but they usual want to see some of your own money into the deal.

Now, is wholesaling a good way to generate cash? Maybe, maybe not. Its often offered as a quick and easy way for new investors to make money. I think that's often a pipe dream sold by the folks who stand to make money selling courses and mentoring on wholesaling. Its not quick or easy nor can you do it with no cash.

So, you need to figure out what you can do to make some money to start your fix and flip business. Wholesaling is just a job. There may be other jobs you could get to make some extra money. Examine your skills and knowledge and find something you can do.