How to borrow with good capital but bad credit?

[Josh Kercher]

Hello BP!

Wanted to throw together a quick conversation on how to borrow $ to invest in Multi-Family properties when you have a decent amount of capital but your credit is on the other side of the ship (under 640)?

I'm a Realtor and I find myself coming across several deals that fit my own personal criteria for investing as well as our BP "rules of thumb". I've been looking at a lot of 4+ units and a few duplex and triplex.

So in my situation I'm trying to find out what the best way to borrow is when you have good capital (around $100k in reserves) but a low credit score (630)? I'd prefer to leverage myself instead of sinking all my reserves into one or two properties and I would especially like to get more doors in my portfolio and get into a complex of 4+

My fiance has a 740+ but no documented income since she is a nanny (bless her heart)...

I'm frustrated. :cry:

[J Scott]

In the lending environment, it's going to be tough to borrow money without at least decent credit.

With credit below 640, your options essentially boil down to private lenders, hard money lenders, and perhaps some portfolio lenders if you have a proven track record of investing success.

All that said, start working on your credit now, and in a year or so, hopefully you'll be positioned to borrow!