It is possible to invest in real estate with no money and with bad credit. To do this, you must find a trustworthy network. There are a number of sources you can get money from.
Hard money lenders set forth fees on a point scale from three to five, which represent an upfront percentage fee based on the amount borrowed. This fee is in addition to an interest rate of 10 to 18 percent.
Private money loans can be obtained for 6 to 12 percent of the amount borrowed. These loans come from individual persons and businesses expecting a return on investment.
Wholesaling is finding discounted properties and getting paid to assign a contract to a potential buyer.
Equity partnerships divide the responsibilities of credit score, working capital, and finding discounted properties between two or more people.
Home equity is the process of rewriting an existing mortgage to do a cash refinance, or add a home equity line of credit to the mortgage.
Option to buy allows one to obtain properties without actually taking legal ownership initially, and instead renting the property on a long-term basis with a contract to buy the property at a later time for an amount that has already been established.
Seller financing is where the homeowner sells the property and draws up a contract for repayment.
House hacking is where unoccupied portions of a home or property are rented out to contribute to the mortgage.
Government loans are another option to obtain financing, but may take months to receive approval.
Microloans are issued by individual persons instead of banks.
Finally, no matter how you proceed to obtain capital for your investment, it is important to know your credit score and understand how this works with or against how you decide to invest.
Got the will but not the fiscal way? Don’t let that stop you from real estate investing! #Ironclad
- 1Leveraging other people’s money to acquire real estate is a successful strategy
- 2Having an excellent credit score will provide you with better investment options and financing
- 3Don’t be afraid to crowd source your funds to purchase real estate or find soft partners willing to let you do the leg work while they provide the capital.
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