Chapter 13 Bankruptcy & Real estate Investing

Chapter 13 Bankruptcy & Real estate Investing

Union City, CA · Member since 2017 · 35 posts · 13 votes

Hello BP Fam,

I'm totally putting myself out here but i'm really eager to learn. 

I filed for Chapter 13 bankruptcy in Dec 2012.  I finally paid off the trustee this month. ( Hallelujah!! )

I've learned a lot in this process and have worked really hard on my credit in the past 1 1/2 year. 

I went from the low 500's to almost 700 in a little over a year and i'm at the point in my life where i feel credit worthy now.  As i know that there are dozens of creative ways to finance a deal, my primary concern is executing that first deal with little or no mistakes.  I'm not sure what questions to ask but thought i can get some feedback from people who've been in Chapter 13 bankruptcy. How do i start taking action in my real estate business after bankruptcy?

Thank you =)

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Rockledge, FL · Member since 2016 · 493 posts · 427 votes
9y

Hazel,

I'll take a stab at this:

First things first - Congratulations on successfully coming out of a CH13.

Start where everyone else starts.. get your team together. Find folks that can advise you without being prejudicial about your CH13. Read, put a business plan together, execute. The best part of this... you know some of what not to do!

Put another way, get over your CH13. You are done, you've done your best, and now it's behind you. Move forward.

Oh, yeah forgot to add... you will make mistakes. Two tricks: 1) learn from them so you don't repeat them and 2) make mistakes that don't kill your business. Due diligence, a good team and business plan helps #2 immensely.

Good Luck!

Jim

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  • Rockledge, FL · Member since 2016 · 493 posts · 427 votes
    9y

    Hazel,

    I'll take a stab at this:

    First things first - Congratulations on successfully coming out of a CH13.

    Start where everyone else starts.. get your team together. Find folks that can advise you without being prejudicial about your CH13. Read, put a business plan together, execute. The best part of this... you know some of what not to do!

    Put another way, get over your CH13. You are done, you've done your best, and now it's behind you. Move forward.

    Oh, yeah forgot to add... you will make mistakes. Two tricks: 1) learn from them so you don't repeat them and 2) make mistakes that don't kill your business. Due diligence, a good team and business plan helps #2 immensely.

    Good Luck!

    Jim

  • Union City, CA · Member since 2017 · 35 posts · 13 votes
    9y
    James C. Thanks Jim! This is what I needed to hear! I'm taking the steps in moving forward!! Thanks for taking the time in reading my post and responding to me! You're much appreciated!
  • Investor · Chandler, AZ · Member since 2015 · 409 posts · 214 votes
    9y

    hazel

    congrats

    now go get a deal

    ya sure the people will let you know all about your past

    the past is the past

    go for the gold get you a deal done and don't look back

    enjoy

  • Union City, CA · Member since 2017 · 35 posts · 13 votes
    9y
    Stanley Parsley thank you! Moving forward and not looking back!! Thank you for taking the time to respond!
  • Investor · Dallas, TX · Member since 2016 · 60 posts · 65 votes
    9y

    Here's an issue!! Lenders/Banks are going to want to wait 2 years after you have discharged the bankruptcy before they will lend you any money. This means if you want to go to a bank  you have 24 months to go. Sucks!!!!

    Keep saving!! Don't do anything too desperate until you are free and clear in 24 months. If you can land a deal just plan to refinance it at the end of 24 months. Keep going!!! You are almost there. CONGRATS on getting this far. 

  • Investor · Columbus, GA · Member since 2014 · 2k+ posts · 1k+ votes
    9y

    The only people that will know about your BK history are you and the lender.  I would learn investing strategies that don't involve banks.  Wholesaling, Options, and owner finance deals come to mind. These are niches that some people use when getting started.  Once you have a stack of money, your credit score is less of factor.  Debt is like a snake. You don't have to be afraid of it, but handle with caution or you will get bitten. I wish you success.

  • Union City, CA · Member since 2017 · 35 posts · 13 votes
    9y
    Edwin Williams another BP friend of mine mentioned the 2 years to me also. YES, it does suck!! But I will not let that stop me from taking action. This has been such a learning process for me and I've made it this far, and I'm not giving up!! Thank you for responding my friend!
  • Union City, CA · Member since 2017 · 35 posts · 13 votes
    9y
    Anthony Dooley thank you for the tips!! You are much appreciated!
  • Spring, TX · Member since 2016 · 3 posts · 1 vote
    6y

    I know that you probably are past the 2 years, but simply to add to this thread, I am in Chapter 13 right now, and Quicken Loans told me that they will make a loan the DAY AFTER I finish Chapter 13.  Just saying...

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