Need cash out of a FREE and CLEAR property

[Troy Durrette]

I have a friend (Potential Private Money Investor) who owns a house free and clear with BAD credit. How can we get cash out of the situation. I was thinking less money than more, however, if it can be done, and its a lot to it, they are willing to pull out more vs less. Does the amount matter? I have some thoughts but not sure. 

[Jon Holdman]

No way.  Someone with poor credit has no business taking cash out of their residence to invest in a risky venture like real estate.  The fact the two of you are asking this question tells me he or she is thinking of borrowing against their residence tells me they have limited other assets to invest.  Not a great situation to start with.  Now you want them to put their residence at risk to loan you money.  That has a very high possibility of making a bad situation worse.  I've been a lender and investor in a number of deals.  Some worked out, some turned into total losses.  None put the roof over my head at risk.