Rental Property Investor · Happy Valley, OR · Member since 2021 · 14 posts · 7 votes
So I'm just starting out and I'm pumped. I've been listening to the podcasts and I'm going to go pro by the end of the month.
It is said that the journey of 10,000 mike's starts with a single step. The direction of that step is can go in many directions. I was hoping to aquire multi family homes and house hack for a while to get the ball rolling. I've been wondering about how I would go about find finances as my credit is less than perfect. Any suggestions?
Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
5y
@Adrian Coleman, two steps: first start cleaning up your credit. Get past due items paid off, start saving, etc. Real estate is a capital intensive business, so you need funds available. I have had a property (thankfully that I sold) need a $5,000 (I think buyer got taken advantage of) repipe for leaking gas lines about 2 months after we sold it. We lived there for 7 years without a single issue.
Secondly, start calling lenders. FHA loans seem to be the most accommodating for less than ideal credit and/or much smaller down payments. And I would google, then call FHA lenders in your area to start getting a gauge for what they will need, and hurdles you might run into. I would also just start calling banks and talking to loan officers. Let them know what you are trying to achieve, and where you stand, honestly. They will give you a good road map of what they can do for you and options you have.
Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
5y
@Adrian Coleman, two steps: first start cleaning up your credit. Get past due items paid off, start saving, etc. Real estate is a capital intensive business, so you need funds available. I have had a property (thankfully that I sold) need a $5,000 (I think buyer got taken advantage of) repipe for leaking gas lines about 2 months after we sold it. We lived there for 7 years without a single issue.
Secondly, start calling lenders. FHA loans seem to be the most accommodating for less than ideal credit and/or much smaller down payments. And I would google, then call FHA lenders in your area to start getting a gauge for what they will need, and hurdles you might run into. I would also just start calling banks and talking to loan officers. Let them know what you are trying to achieve, and where you stand, honestly. They will give you a good road map of what they can do for you and options you have.
Investor · Durham, NC · Member since 2020 · 1k+ posts · 691 votes
5y
I agree- start reaching out to mortgage lenders and building relationships. You can find them through BP by asking for recommendations for different lenders in the areas you are interested in.
Investor · Glen Mills, PA · Member since 2019 · 185 posts · 208 votes
5y
Don't overlook the power of partnerships and networking as well. If you partner and/or JV on properties, your (temporary) weaknesses on the credit/financial side may be overcome if you can bring other skills and talents to the table.