No capital bad credit

[Account Closed]

I want to become an investor(all types). Current barriers- no cash and credit is in the 500’s. Currently in the Memphis area. Aside from hard money loans, I am at a loss where to start. Seasoned, in between, and newbies I welcome your opinion. Thanks.

[Erik Bood]

Shun, 7 years ago I was in a similar situation. I had lots of debt, no cash and credit that was in the low 600's since I had maxed all of my credit cards out. I worked out of the situation by doing the following.

1. Fix your spending. List ALL of your living expenses. Then RUTHLESSLY go through them and see what you can cut.
2. Cut all of the unnecessary expenses and re-look at your monthly income versus expenses. Start paying down your debt aggressively every month. Give things up, sacrifice.
3. Find a way to earn more money. Can you learn additional skills? Can you work extra hours? Can you find a better paying job? Hustle. Hustle and hustle. Don't accept failure, it can be done.
4. After doing the above for a couple years (less if you really get after it) your credit will improve. Then you can buy a 2-4 unit building, live in one unit and cut your monthly expenses by living in it. This will really accelerate your debt pay down and opportunity to invest in Real Estate. Coming up with a down payment doesn't have to be hard. Save a little money every month and look at borrowing from a 401k or any other source you have to get the down payment. 3.5% down on a $100k property is only $3500.

Overall you first need to get on level ground with your finances. Be honest with yourself, and start making things happen. Remember, things in motion tend to stay in motion.

Hope it helps.