what now

Question

I paid cash for my house in march.. it took all I had and im broke now and poor credit but I want to invest real bad cause I know once I start I will be great. Idk what to do next, how do I get private funding? Do I put a first mmortgage on my house? Im lost I need help please HELP. im stuck now and my market is aawsome I think I can really make a difference if only I can get started.. who do I turn to to get as little as 10- 15k cause that's all it takes for me ... any ideas

Jason Farmer · Answer

@Jasmine Wilkes

What your doing is exactly how i started...The first thing you should is stop and take a deep breath and smile...You bought a property all cash..that something most people on here have never done or never will do...Congrats on that....

Your next move should be a refi cash out...But first as everyones telling you get your credit right, thats what everyhthing will rely on...It might take you a few months but do it, that move can change your entire life. The next thing is to nail that what your ARV  of that property is so you can detetermine how much you can actually even take out...If you nail that ARV you might be able to get enough cash out do small reparis on the current property or even out right buy another property all cash..I bought my frst property for $6800 from a tax sale, i put 10k into it and was able to get my AVR at 85k...i pulled out 40k....I paid myself back, and i bought another  rental...I repeated that process 9 times...Of course each time was slightly different but the concept is the same...I buy cheap properties out of state so this method rocks for me...

My personal advice would be to stay away from private money or HML....get conventional financing...the rates are way better, i have two 40k mortgages out and i pay less than $185 a month for each on 30 yr term... And i have one cash out mortgage for 70k and i pay $323 a month...also 30 yr terms....My other properties are paid off...By using this strategy...I used the cash out method to pay cash for the next property all cash...And it only takes one of my rentals to pay all mmy mortgages out the rest after PM, taxes, insurance etc...is net cash to me...

Your on the right track...Fix that credit and nail down your ARV and your investing career can take off from here..Congrates and good luck...And look at the positive here stop focusing on the negative, you did a good thing...

Account Closed · Answer

catch 22, cant get a mortgage without good credit. work on credit first. use incomero pay stuff off and see credit repair specialist, then get mortgage, then use money to buy first investment property.

Jared DeValk · Answer

Have you considered Hard Money?

Here is the link to a US list of Hard Money Lenders by State:

http://www.biggerpockets.com/hardmoneylenders

Jasmine Wilkes · Answer

Account Closed thanks alot.. im on it asap. Im thinking of a first mortgage and use some of it to pay off  some credit debt

Account Closed · Answer

work on your credit first, then people will do business with you

Jasmine Wilkes · Answer

@Barbara Riley thank u.. that is a great idea. I will definitely look into it.. and if anybody is interested I have a 3bd 2bath  for sale for 20k. . Great investment property .. I also have a few other homes and alot of leads for homes here in st.louis

Barbara Riley · Answer

I too had credit problems. It was holding me back from buying a house, or investing. (My interest is wholesaling to start). I had a disastrous and expensive experience with a repair service (recommended by an investor's association, btw). After that I decided to do some studying on my own about how to improve my score.

I found a book called "Guaranteed Credit" by Arnold S. Goldstein (be sure to use the middle initial when doing a search!). The book I have is a 1995 edition. I think there is a newer one. It is easy to follow and has numerous sample letters to creditors, the credit bureaus, etc. I was able to get my credit score up significantly, to 720, and qualify for a mortgage in less than a year. It's been a long time so I don't remember what my score was to start with, but it wasn't good.

Arnold S. Goldstein has some other books which I haven't read, but which I bet are good...dealing with the IRS, asset protection, more. You can find "Guaranteed Credit" at www.Half.Com for less than $5 including shipping, and even the 1995 version should be of a lot of help because of the links it has to updated sites such as the Fair Credit Reporting Act. Addresses to the credit bureaus are probably out of date since they keep changing, but you can find them elsewhere, of course. Repairing my own credit this way cost me only the price of the book and Certified Mail postage...and it was "private."

Chavis Atkins · Answer

Very interesting topic although it doesn't fit me right now but in the end, I need to fix my credit as well.... just need the right income to be coming in and that is why I'm wholesaling. Looking to make that first wholesale deal happen and then EXPLOSION!

Jasmine Wilkes · Answer

@Brant Richardson thanks @Jason  Farmer I really appreciate it and I am going to look at the positive. . I will work on my credit and continue to go on as planned. . We should connect its many of property here and I can help u obtain a cpl

Brant Richardson · Answer

Listen to the last podcast, #70.  The speaker is doing 10 deals a month with no money down.  Subject too and other seller financed options are a good option for you.

With several foreclosures on your record it might be awhile before you will qualify for traditional lending.  Do everyhing right and nothing wrong as far as your credit goes, make it a top priority.

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