Please help. In a dilemma

[Brian Miller]

I am fully committed to becoming a REI, and am itching to get a deal under my belt. A divorce destroyed my credit a few years back and I finally got it back to a 600, but it still is not enough for a bank loan. I also only have 20k at this moment in savings, so too little for a hard money loan, who want 20% down payment. I have found a sweetheart deal, but I am 14k short of cash needed to get the hard money loan. Should I just wait, build my credit another 100 points, save another 30-40k then regather, or push the envelope?

[Steve Hyzny]

Some will say take the deal and figure out the finances later, a little risky.

I agree with find a partner that is in a similar boat or further int he game then you, so you both can get a win. Offer to buy them out when you refi on your own. Set the terms upfront.

I have 5 properties now it been 7 years running. I purchased my first for 27K 10 K rehab and rented for 7 years, with only minor issues. Added my 2nd 2 years later, and kept looking for just the right deal. I throw a lot of low balls out there and only get a few close. I self manage and believe that diversification of my assets is important. I have a 401K and stocks enough to buy a nice house but like knowing if I fall I have something to fall on.

I take $150 each month and auto invest it in s DRiP (Direct Reinvestment Program) to buy a dividend stock with my rental payments. It automatically takes a little of my profits and puts it in stocks so I have both real estate and stocks growing for me. I know many would say I could use my stocks and leverage to buy more properties, BRRR my properties...... I have 5 SFR's worth about $550,000 and I owe 35K, I'm buying solid C rentals and pay them off, its a slower path but I'm growing and looking at doing 2 deals min a year now with less then 50% leveraging of my existing. I want room to survive any issues. I still work full time because I like what i do, but am building slowing on a solid foundation.

So the reason for my story, watch what you risk. I would save and continue looking for a good deal you can swing without putting everything at risk. With work there will always be another deal.