What happened was they wanted to invest with me but I had no other property at the time with which to secure their investment.This is a very unusual situation and by no means is the norm for my business.

I am starting my business as a wholesaler, and as it grows, I will do fix & flip, buy and hold, & eventually apartment/commercial buildings.I am all excited about this business, because I meet people from every sphere, also being in my mid 50's, I need to build some residual income, to secure my nest egg for retirement.

He left an executive level corporate job to invest in real estate full time because he didn't have any job security.

why can't I collect the security deposit and 1st month rent to complete rehab?

We required pre-approval and $1000.00 earnest to secure it.

Some landlords collect last month's rent instead of a security deposit, assuming they weren't collecting both.

You will also not be able to qualify for any type of mortgage or finance to buy a regular single family either.My best advice to you would be to work, get a secured credit card ASAP (or two or three) to build your credit as I did (currently 3 years in with a 780 score) and get a multifamily (2-4 units) and get an FHA loan.

After this however, you hopefully have enough cash or equity in those 5 properties that you don't need to take out a conventional mortgage to fund your investments because you'll have either the net worth, or the other available options secured.

Environment, upbringing, assets, socioeconomic status, having stake on the line (career, assets, security deposit, something) affect these things.

I am looking into becoming a private money lender for a real estate investment company who secures their loans by placing the lender as the 1st lean position and uses a "Reverse Quit Claim Deed" to avoid the necessity of foreclosure proceedings.