Because the buyer has poor financial discipline which is why they can't qualify through a bank.If you have good financial discipline but just have bad credit due to unfortunate events outside of your control (e.g. medical issues) then my recommendation is to work hard to recover your credit and save up the funds necessary to purchase.I'm using seller-financing right now to purchase six apartments but it's because the terms are more favorable to me and the seller, not because I can't qualify through a traditional lender.

Look into the area that invent communities are building, midcity, medical district, and the Mill districts.

My wife doe snot participate in the business and understands probably 10% of what I say about REI (she's in the medical field so is much smarter than me) but she is on board. 

It is very new and a lot of medical industry popped up there.

I have a 1 bedroom apartment in the medical centre near NRG stadium Houston Texas.

So PLEASE spare me all that wholesaling hate when you are simply not educated of what wholesaling is and what it can do for sellers.We helped one mother's sick child once as they needed funding for a medical procedure.

If it was medical and most actually are medical, then when the bankruptcy is discharged, they can't file again for 7 or 8 years so they are now a pretty safe bet.

If the rules change that you now need to rent to 30 days minimum guests, then you can target corporate rentals (business travelers on project, traveling nurses, traveling medical personnel).     

The local medical community is a factor for that group as well.

Some of my best renters have had bad credit although most are due to medical bills or a divorce.