If your credit and your cash are low, you may want to stay away from making offers through a realtor at this time. They’ll want a down payment. Even if you get an “investor” loan, the lender will still want to review your credit and will probably penalize you with high interest or other restrictions.
Always know your numbers and your exit strategy before you make an offer. Are you planning to rent this house out? Lease Option? Rehab and Retail? Wholesale? Let me know your thoughts on this and what other prospects you’re looking at.
A friend sent me this site the other day. and its great! ok, I am looking at doing my first deal. I have gone through the carlton sheets program, and have sat on my thumbs long enough. I am a single mom and recently divorced (so my credit kinda sux). I am taking the first plundge so to speak in the real estate world, by myself. I have found several properties that have potential. The one I’m looking at has an out of town owner and has been on the market since last November. Hasn’t sold because of the price ($71K). The realtor has told me they want to make a deal and are willing to go down to the low 60’s. I was wondering if I should low ball my offer since the property needs updating (no major work) and that would give me some built in equity. I would like some advise as to whether I should go ahead and get approved for an investment loan as a back-up incase the current owners will not finance. (The property has a very small loan on it at present aprox 10k). Thanks you.