Pre-Approval For Hard Money Loan

[Anthony Adanandus]

Hello People! My name is Anthony and I'm planning to invest in my 1st fix and flip property in Bay Area Sacramento Area. With No steady income, no assets, no credit, no-cosigner, no large cash reserve or experience. How Do I Get Pre-Approved For Loans With Just Great/Good Knowledge, Some Home Improvement Skills, A Fix and Flip Team Ready To Deploy, Great Planning and Lucrative Profitable Deal Appraisal Skills? 1st post.

[Michael Verkruyse]

With no credit/assets/income/proven history you're going to have to leverage relationships you have in order to get funding, and even then, it'll be an uphill battle.

The best bet would be to find a partner/investor willing to take a risk on you, if you have a portfolio which details your experience that would be a good first step.

[Jeff Lezark]

You are a perfect candidate for The Bank of Mom & Dad!

Seriously, any lender looking at you right now will shy away for all the reasons you stated in your message. Build up your cash position and make sure you are very aware of what's contained in your credit report. Try to find an experienced investor or two who'll allow you to velcro yourself to them to gain working knowledge. Don't be afraid to intern for learning.

[Chris Music]

Anthony, where there is a will there's a way, I'm sure if you find an amazing deal you could find a lender willing to work with you if you search hard enough. Even if you can get a loan, I'd suggest you partner up with an experienced investor the first time out. Considering you are just starting out, you can not afford to have your first project go bad, you will make less money on the house but you will gain experience and be in a position to easily attract lenders on your second project. I am a fix and flip investor in the Bay Area and would be interested in projects in Sacramento. If you're interested in discussing further send me an email. 

[Anthony Adanandus]

1st I want to thank everyone for taking the time to reply to my post. The advice is truly appreciated. So is it any way to acquire property(get under contract) without being pre- approved? What would be a worse case scenario if a lender was to approve me for a loan? I plan to pay a 15% interest on the loan because I know average is about 8%. I even expect to get charged 300 a sq. ft. for remodeling cost knowing could shop for 180 a sq. ft. and sell lower than A.R.V. and still make Profit. Prepare for the worst and hope for best Approach. I know if I can get a seller to trust me then that's a way but seems impossible for some1 to take me serious without pre-approval letter. THIS SITE IS FULL OF CREATIVE REAL ESTATE KNOW HOW. I could collectively use the information and mix formulas creating a true NO Money, No Credit, No Co-Signer, No-Experience and No Assets way. I Think I have with the Ideas & Information I've calculated Excellent Deals and Looking for a way to get Pre-Approved Letter from Lender. Thank you for the comments in advance.

[Account Closed]

I like the Bank of Mom and Dad. Study real estate investing, attend auctions, get your real estate license, go to REIA's. Sit in rent court every other day, go to housing court, listen to the cases, farm areas.

Look at 50 houses. Start a journal with information on every house u look at, make copious notes especially the cost per SF of every property you look at. Do not make an offer until you look at 50 properties

Hang with people you want to be like.

Have fun, set and follow your goals

[Jesse Hinaman]

@Anthony Adanandus @Account Closed gives some great advice. To paraphrase, real estate is not something you can jump into overnight and get rich quick. It's a chess match that takes years of strategizing, making many small moves that develop and snowball after many years of right (and sometimes wrong) choices.

If you can't prequalify now, plan for the future. Establish your credit. Get a steady job in a career that aligns with your passions and goals. Save what you can, and you will be in a great position in 2 years.

Just like everything in life, we are continuously learning and developing, with each passing year. Like any long term investment, our time and effort compounds with age. Its taken me almost 9 years from the date I purchased my first property to get to a point where I feel I have found my stride. Even so, I have so much more to learn, and new phases and opportunities to embark on.

Keep the positive attitude, never give up, and you will get to your first destination. The best part is, once you get there, the train is ready to take off to the next milestone.

[Account Closed]

https://www.biggerpockets.com/users/AnthonyA Nice comments, very sincere. But, what if this person is impatient and wants to get into the game now and start making money immediately in this business?

Some ideas:

• Become a part time auctioneer associate with an auction company
• Meet with investors, offer to bring them good deals in return for a percentage of the equity or a referral fee
• Get a real estate license now, get into that culture to learn the business
• Talk to home improvement companies (only the owners), offer to bring them leads (home improvement leads for windows, kitchens, bathrooms siding etc.) in return for cash
• There is a great book that's been on the market for a long time; 500 Ways to Make Money Without a Job, look it up.
• Put together a friendly joint venture (family, friends associates) to raise money for investments. Works best if you have a property under contract first, show your potential partners how much they will make and how long it will take.
• Look at 50 houses in one area, become an expert in that neighborhood  of values
• Do something to earn an extra $100.00 per day (read the book)

Good luck

[Tim Ivory]

@Account Closed I cannot find that book anywhere, got a link?

[Greg K.]

I've only read about 1000 posts out of the millions on this site.  This is the best so far.  It's amusing how the content of OP's opening post is normally flame-bait.  But I see now that this is mostly because of the scummy or entitled attitude that often correlates with such "How do I get everything for nothing.  Please do it for me" Posts. 

But OP is not one of these people at all, is he?  The tone between the lines glows of true wanderlusting entrepreneurial spirit.  More importantly, it's joyfull and positive.  Not schemy, demanding, critical, or preachy.

The responses are pure gold. I'm going on 2 years of reading, experimenting, and almost getting scammed, and I've learned a wee bit about REI. No profit to show yet, either.

OP:   "No steady income, no assets, no credit, no-cosigner, no large cash reserve or experience"

Is this because in real life you are so charming, that you've literally been able to get by on your charm?

Probably going to meet-ups or leveraging radically powerful social skills will land you an equally adventurous, but inversely experienced investor/mentor.

-source = same boat(ish)