Is Fair credit enough?

[George Dempster]

Thank you for taking a moment to read this: I live in Queens NY. would like to start investing in real estate in Queens. I only have fair credit, 700, how can I get a loan to buy my first property, when of course, I find it? 

[Ryan Blake]

@George Dempster

That all depends on your strategy. There are loans you can easily get with that credit score but it may not fit your investment. If you are looking to BRRRR or flip, you can get a HML pretty easily. After 6, 9, or 12months, whatever the term you go with, either sell the place for flip revenue or refinance it. When it comes to refi, look for mortgage or small banks that will refi based on the asset, not your ability to repay the debt. They still may require a personal guarantee, but you will qualify based on revenue generated by the property.

You can also start talking with smaller banks in Queens or the area you plan to invest in. When you find one willing to work with you, move all your banking to them. This shows them that you are not looking to just use them for one deal but to generate a relationship with them.

Good luck in your investing and don't let your credit become an excuse for not starting. There is always a way.