No money, low credit score - looking at options

[Cheri Schaffer]

Hey guys!  

So I did my intro post about a week or so ago, I believe, and I had a great warm welcoming!  Thanks guys.  I can't wait to grow and learn from everyone!

Right now I'm wracking my brain at my possibilities, what steps I should take, and a good time line for myself.   Right now I have no money, bad credit, and am currently in a rental myself.  I have to resign my lease in August for another 6 month agreement.  

What I'm thinking is I sign the lease and use the 6 months to save money and repair my credit the best I can.  I may have to get another part time job until then, but I think it could work.  

When the 6 months is up I start looking into investment properties.  Hopefully a 4-plex in the near by neighborhood of Putnam, Ct.  It's close to my family that lives in New England, the community is great and very involved, and has a great central location to other shopping other than just the town itself.  

I was hoping that I would be out of here before August, but I'm not so sure that's realistic at this point.  I guess I'm just eager to get out on my own and start my investments!  

Anyways, what I'm looking for is any type of advice, whether it be towards my current plan or maybe something that might be a bit different. What options I should be looking at, other than just an FHA loan. What other things I might need to do to prepare for it all. I'm already learning a bunch from the forums!

Thanks!  :)

Cheri

[Char Prado]

All the folks above have given you great advice!

I completely agree with Keith John about getting a duplex or small house with separate floors, renting out 1 level that does pay the mortgage so you can live free and put your money where needed in your investing.

I am a proponent for "creative financing" because if you don't use your own credit/cash which is a crutch then you have no limitations..OPM comes into play here (Other Peoples Money).

You need to search for financing ie someone carrying a mortgage, look to friends, family who have what you needed and offer an interest rate to them as an investor/partner in a joint venture.

I also urge you to not tie yourself down to a job and instead "drive for dollars", attend a Real Estate Investment group (usually free).  There you can pass out your business cards and network.  Who knows you might find your first deal there!

If you get a property under contract using an Earnest Money amount of only $10 to lock it up and have/find a wholesaler or end buyer and earn a quick $1000 - $5000 and you walk away...

I hope this has been helpful

Good luck