Can i pull money out of property with bad credit?

[Jodi Paulovich]

Hi, i currently own a 3 family with a 4% mortgage, which is doing very well. I am about to purchase a SFH foreclosure for $65k cash (this week), and wanted to find out if there was a way to pull out some cash to pay down debt since it will be paid for? My credit score is only 603. Also, the first property is in an LLC, and this one will be purchased in another LLC.

[Andrew Postell]

@Jodi Paulovich thanks for the post.  I appreciate any time someone is looking to help but the scenario you are describing would absolutely be declined by a bank.  No traditional lending institution would grant you a loan if your credit score is really 603.  That doesn't mean you can't get a loan, but just not through a bank/institutional lender.

My suggestion here is that if there is any chance of success it would  need to go through a private person.  However, this space has it's issues as well.  There are many a dubious person lurking in this lending arena so we need to protect ourselves as best as we can.  Let's reach out to some other investors in the market of the subject property.  Go to facebook and search for "Real Estate Investor (with whatever state the property is in) and join some of those local groups.  You can even substitute the city (or a close city) for the state and join those.  And then we ask for investor recommendations.  Again, I appreciate whenever someone is offering to help and promoting their own company...but how do we know they are any good?  And while not foolproof, getting a recommendation from another investor is what we need.  That's kind of what you were doing here...we just need it on a more local level for you.  Ask about private lenders and see which people/companies get recommended.  

Hope all of that makes sense.