0 down and rebuilding credit looking for finance options

[Walter Olmstead]

I am trying to secure my first deal and have been evaluating properties for a few months now. My biggest hurtle right now is the first "D" dollars. I'm tired of sitting on the sideline and I'm looking for advice on overcoming that hurtle so I can realize that first deal.

I'm looking to invest in rental units and would like to start with no less than a duplex. 

[Charles Carillo]

@Walter Olmstead

It is difficult to purchase a property with $0 down, and low/fair credit. Lenders want the buyer to have skin in the game to secure their position. You could find a seller who is interested in selling with seller financing but, it is going to be the same story. In most instances, they want the buyer to make a down payment to ensure that the purchaser follows through. Yes, you could find a seller who will accept a $0 down payment but, it is hard enough to just find a seller that is looking to sell on terms, and then to find one who will seller finance with no $0 down is going to be more difficult.

Lastly, is the fact that when you purchase a property, in most cases, it is going to require (a lot of) work. If you do not have the funds to cover these upfront repairs, along with a reserve fund for issues that will happen, you will find yourself in a difficult position. The property will be more of a curse than a blessing.

Purchasing real estate without cash for repairs, and a reserve fund is a recipe for disaster. I would focus on rebuilding your credit, and maybe start wholesaling or some other side hustle until you are able to correct your credit, and set up a savings account to save for a future real estate investment.