How to fund a good deal with less than stellar credit

How to fund a good deal with less than stellar credit

Investor · USA · Member since 2019 · 9 posts · 9 votes

I've been a PM, wholesaler, and Acquisition director for a private investor but, have never owned a rental property myself. I feel because I assumed there would be no way I could get funding other than writing a personal check. I have acquired many profitable properties and have been fortunate to do well wholesaling. It's always a bittersweet feeling having to see your deal be passed along. Which leads me to trying to find the right method (I'm well aware of seller financing and have personally sold deals for a private investor on lease options and land contracts) in which someone without a great credit history can purchase rental properties. I have very little experience in the funding side as my private investor always lined up the funding, I just negotiated the p/a and worked directly with sellers. From there I would manage the properties, coordinate the rehabs, and lease any vacant units. I feel like I have a pizza with a slice missing. I'm not necessarily looking for someone to explain which route to explore, I am sure it's well covered with a search function. I am looking specifically in which method to explore, that would most likely work well as long as the deal makes sense. Ex: I have a great deal, numbers makes sense, so much sense that the credit doesn't matter. Any advice would be helpful. I do have financial income over 6 figures but far from a millionaire if that changes things at all. I just foresee scaling being my largest hurdle as even setting aside over half of my income, it will take me quite a long time to replace what I am earning. Thank you in advance and appreciate your time reading through this.

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  • Rental Property Investor · North Palm Beach, FL · Member since 2018 · 2k+ posts · 1k+ votes
    5y

    @Jason James

    Have you ever thought of using the lenders that the private investor uses? There are tons of lenders out there that will lend on less than perfect credit. The rate will most likley be higher and the fees might be higher but it is very doable. If you have 6 figure income, you could also use some of that money to pay off debts that are negatively impacting your credit score.

  • Lender · San Antonio, TX · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    @Jason James Like @Charles Carillo said, plenty of lenders (on here even) that will go down their credit score requirement in exchange for a higher rate or lower LTV (or both). So if you can pay a little more or put a little more down, you shouldn't have a problem assuming you aren't in bankruptcy or something

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