Bad Credit And No Money
is there any way i can get a deal done with bad credit(520 fico), no checking account,(chexsystems) and no money(live paycheck to paycheck). what would you recommend to get started with this mess im in.
[ Edited by garythompson9122 on Date 10/16/2005 ]
maybe you should consider wholesaling since you do not need any money for that. Just make sure to have a good exit strategy in case you do not find a buyer...
explain wholesaling with all my issues how do i go about that?
I just do deals right now every now and then because I lost my edge and slowly getting back wanting to play. Years ago I was taught the best time to buy real estate and take the risk is when you are dead a** broke and look hopeless. What have you got to lose? Try to find a multi-unit property you can get into to use the first months rent as your down payment.
Maybe another something you would do an equity participation with an owner and sell at a predetermined time all costs and money expended by owner could be protected and he gets his return.
Another thing how about finding an owner that wants to unload but wants to make a profit. Offer him nothing down nothing a month and a balloon payment when you sell.
I absolutely agree with others that have said...find the deal the money will follow. YOU ARE A PROBLEM SOLVER, it is not about the money it is about solving the problem, the money will show. WHAT is your monthly payment capacity. THAT is important to start some deals. Most mortgages that you get that is what they want to know. Your credit score is only part of the picture. If I were you I would act like a buyer and concentrate on solving the problem....HOW MUCH DOWN AND HOW MUCH A MONTH? That is the gist of it all. Hope I offered something here.
rbjj-
What about seller financing (your house)? That way you could have money coming in each month from the buyer. Bob Bruss had an interesting article about it a few weeks ago (link below):
http://www.inman.com/bruss/index.htm
Thanks drandom for your reply.
I read the article, and it was very informative. The only thing I was unsure of If you can Seller finance with a mortgage still on the house. He talked alot about sellers that had free and clear homes.
Is there any difference between lease option and seller financing ?. I know the buyer has an option at a certain time to purchase or walk away on a lease option, but are there different contracts used for seller financing.
I guess it would be a good concept for me also when I try to buy a smaller one, with my credit and credit score being on the low side right now.
rbjj-
I am not very mortgage/note savvy, someone else on this board might be able to answer those questions. But I did see a book on amazon that would be helpful Streetwise Seller Financing
http://www.amazon.com/gp/product/0974363103/qid=1137311506/sr=8-1/ref=pd_bbs_1/002-9219908-8108036?n=507846&s=books&v=glance
Under those circumstances I think the equity loan is a good option although a refi would probably get better rates and maybe lower payments even with a bad score.
I refinanced with bad credit ( bills not on autopay went unpaid while I was ill) after I too became disabled at 28. I stuck to the same lender and based on the good payment history was able to refinance.
Imagine disabled at 28. I had to fight like heck for the disability but depending on the type and on where the payments are coming from you might be able to get a part time. It took me almost 5 years but I got myself some new training, spent a lot of time learning on my own and reading and decided to employ myself. That was the best choice as now I have jobs tailored to overlook my disability. And I am now self supporting to the point I was able to terminate the disability payments.
Building some business credit might be your best option. If you do not have a business name register one, get a business bank account, and follow the advice in this thread to get lines of credit http://www.thecreativeinvestor.com/residential/ViewTopic51732-22-15.html It is good info and while I am just rying it now I know several folks that got cash quickly ( in less than 3 months) using similar info.
Look over your personal credit - is it bad because of over extended or lates? If lates consider disputing with the credit bureaus. That works sometimes.
I think you need a full proactive approach - way to reduce current debt, way to increase current cash flow and clean/improved credit.
Good luck. I know you can do it.
Linlin,
Thank you so much for all your good advice and support. Sorry to hear about your disability at such a young age, but glad to hear you are not letting it stop you from pressing on.
After much prayer and all the good advice from this site, I think I have a good idea what needs to be done now, and my spirits have been lifted .
Refinancing seems to be the best thing to do because any smaller home that I would be interested in would cost more than what I owe on my home now, and I have done a lot of improvements to this one.
I am going to try and pay some of the small credit card bills off, to raise my credit a little before I apply. I am going to check on how much work I can try and do, and see if I can find something part-time to do to help pay those bills off.
Thanks for all the help.