private money lenders

[April Higbee]

Hi, i am having some problems trying to start out the family business. We have tried every finance company in the area and at least 4 different banks. They all have told us the same things on why we have been denied. None of us have good enough credit. I finally got in touch with a hard money lender willing to work with us, but we need 15,000 down to put into a reserve account. That is our other problem WE HAVE NO MONEY! who has 15 THOUSAND just laying around! lol so...my question is what should i do? We are attending monthly real estate clubs and we have a membership so we can learn more. I have read that we could wholesale, but i still dont understand how you can wholesale with no money? Also, i heard of private money lenders but every site i go to for listings of lenders it COSTS! I feel like i am running in circles...PLEASE HELP

[J Scott]

If you have bad credit and no cash, you're going to have a lot of difficulty breaking into real estate investing.

Forgive me if this sounds harsh, but if you have bad credit, it's likely because you have too much debt and/or you don't pay your obligations on time, and if you don't have any cash, it's likely because you're not good at saving money. As a lender, not being able to pay your bills and spending too much money are two big red flags.

My best recommendation is to start working to improve your financial situation (pick up a couple books on money management, fixing your credit, etc) and start saving money. Once your credit is in better shape and you have some money saved, you can try again with the banks and private lenders.