DC Fawcett Virtual Real Estate Investing club
Are you interested in starting a real estate investment company despite no cash, bad or poor credit score? If your answer is yes, the doors are open for you. What are you waiting for? Just grab or avail the opportunities wherein you can get financial assistance to establish yourself and free yourself from all the debts. DC Fawcett gives you some tips to start your real estate investment business without any investment.
Tips to start real estate investment without money
If you have huge debts to repay or facing the foreclosure, there is nothing to worry as there are plenty of options to start your real estate investment business. If your credit score is awful, it isn’t the end of the world. You can still avail loans from some of the sources. Here are the tips.
Hard/Private Money Lenders
If the banks don’t approve your loan application, owing to your poor credit score, you can resort to hard or private money lenders who can help you. There are certain criteria for loan approval in this option. The fees and the interest rates may be high.
You need not have a high credit score or large amount of money down. Real estate wholesaling consists of finding discounted properties that are given to the prospective and potential buyer who is getting paid to do that.
This is the most common way to start a real estate investment business. In this type, one investor can cover up for another. One partner will find the property at a concessional rate while the other will use his or her good credit score and working capital to get the business going smoothly.
This is another option for the investors who have no upfront money. It is an added advantage as the property value has gone up recently. The investor has two options to avail finance.
Rewrite the first mortgage and opt for a reverse mortgage.Keep the first loan aside and add a home equity line of credit.
With this type of financing, the investor directly deals with the seller or the homeowner and sign an agreement that states about the due date of paying the interest and the consequences of default that has been agreed.
Borrow money from family or friends
If you have little or no money, but are from a well-to-do family or friends, you can borrow from them with an assurance of paying them back. You can do this by writing a promissory note with payment dates and the rate of interest. You need to take certain factors into consideration before approaching them such as your relationship with them and how it will get affected if you are unable to repay them.
Understanding your credit score is more important if you wish to avail for further loans. Your loan approval depends on the credit score you have.