Beginner Seeking a starting Place, (Bad Credit) - Posted by Michelle Johnson

Posted by Tia Gordon on August 13, 2004 at 09:35:12:

Hello Ed,

I wanted to follow up with you in your response to my post, and thank you for responding and giving me very useful information. I am a complete beginner, I have no idea where to begin, but I have a very strong will to become successful in doing this because I know it can be done. I would love to attend on of your work shops to I may further my knowledge and understanding on making deals, HOW to investigate a deal, and exactly how I can get around the credit issue. I want to follow a step by step process, I would like to be walked through everything from start to finish, I know that is pretty unlikely but I learn best that way. How do I get information on attending your workshop? Do you have a website? Phone number? or Email address?, where I may contact you, I clicked on you link and filled out my basic information.

I have read through the nine ways to deal with bad credit,

1 - partnership, is not a likely option for me, friends or family are either too skeptical or their credit is just as bad.
2 - Flip, I live in a pretty bad market (I feel - the Fairfield county in CT) and once I find the buyer, and then the house where do I get the money to purchase the house? or is it that I am just finding the person the house and charging a finders fee?
3, 4, 5, 6, 7, 8, & 9 - Don’t quite understand how to do, and/or how to work around credit situation in order to do the items listed, and I would not have anything to bring to the table, I would absolutely need a ZERO money down deal, I would not be able to front the 15-35% down payment.

I NEED HELP! I want to be proven wrong. I need someone to show me that this CAN be done. I keep hearing the same thing from everyone, “oh yeah, there are ways around your bad credit” but I have yet to see how. I wanted to see this happen yesterday.

This is what I want to do:
*I want to flip my first deal
*NO money down
*Bring home at least $6K.
IS THIS POSSIBLE? If so show me!

Thank you in advance for your time.

Tia Gordon

Beginner Seeking a starting Place, (Bad Credit) - Posted by Michelle Johnson

Posted by Michelle Johnson on August 11, 2004 at 15:10:04:


I am a new investor, and I am seeking information on how to become a successful investor. I NEED HELP. My credit is bad and I am living check to check I want to get out of my current situation (YESTERDAY) Please send me a message and give me some insite on what I need to do to get started.

Thank you.

Re: Beginner Seeking a starting , (Bad Credit) - Posted by Ed Garcia

Posted by Ed Garcia on August 12, 2004 at 10:26:51:


I hope that this helps,

Here are the (9) ways to do deals with no money and no credit.

9 ways to do a deal with bad credit


In my workshop, I teach that there are at least 9 different ways you can do a deal with poor or bad credit.

Now before I give them to you, I want you to know that I’m really supportive of learning deal structuring. The first thing you need to do is, “investigate your deal” to know what I call (where the bodies lie) another words what is the seller’s main objectives or motivation. That allows, you to have an idea of what approaches are going to be compatible with the sellers needs, allowing you to do the deal.

Here are the 9 ways that I’ve mentioned.

(1) PARTNERHIP: Find a 50/50 partner. It don’t have to be 50/50, it can be what ever you can negotiate.

(2) FLIP: the best way to flip is to find a potential buyer first and then find a property. You can do this by running an ad on a property to see what kind of action you get. Once you have a potential qualified buyer, you’d be surprised how easy it is to find them a house.

(3) LEASE OPTION: Many times you can buy and sell with a lease option. We call this a “Sandwich Lease Option”. Jim, I’m not going to go into any great detail, you can find this information all over this forum.

(4) SELLER CARRY BACK: This is one of, if not my favorite way to buy. Now the best way to utilize this system is to do a second seller carry back in order to give the seller some cash in the deal. If money doesn’t exchange hands, many times the seller doesn’t feel that they consummated a sale.


I find a house that has a small balance on the first. Lets say the house is worth a $100,000; the balance on the first mortgage is $30,000.

If I wanted to buy this house for lets say $80,000, I could ask the seller to carry back $15,000 and go to a hard money lender to borrow 65%
of AMV (appraised market value) of which is $65,000 and the seller carrying $15,000 in second position, would ad up to $80,000. It would also give your seller $35,000 new cash, and $125.00 income on the $15,000 loan that they carried at 10% interest only, for 5 years.

(5) HARD MONEY: Hard money, is an equity loan made at approximately 65% LTV, based on the equity of the property only. Credit is not a consideration.

(6) HARD MONEY/SELLER CARRY BACK: Again, You can have the seller carry back a second and refinance the first, giving the seller some money. You can do variations of this system.

(7) SUB PRIME FINANCING: Many National lenders will provide financing at 70% with poor credit and won’t verify money down.

(8) SUB PRIME/ SELLER CARRY BACK: Again this combination can provide money to the seller, rather than ask them to carry the whole thing. Also there are local independent portfolio lenders that will lend as well as mortgage co’s and I always recommend seeking them out. National one’s would be Associates Finance, American General, Beneficial etc.

(9) CREAT YOUR OWN MORTGAGE: In our workshop, Terry Vaughan covers this, and shows you how to discount it and market it.

Ed Garcia

Re: Beginner Seeking a starting Place - Posted by Juana Holder

Posted by Juana Holder on August 11, 2004 at 22:27:44:


I am in the same situation. Educate yourself thoroughly on real estate. Join a local real estate club. Learn those creative deals.

Look for hard money/private lenders. They don’t care about your credit. But the term of the loan is short and the interest is high. They lend anywhere from 50% to 100%. They key is to find a property, work out the deal on paper and sell it quickly(remember you have a short time to pay the loan/high interests!). All this has to be considered when working with hard money. Ascess the property(any repairs needed and how much), meet the seller’s needs. Fill out the paper work. Show your plan to the lender to prove what a good investment it is. When you get the funding. By the house, then sell it. Everyone gets their money and so do you!

Another idea is a Rent to own/ lease option.


Re: Beginner Seeking a starting , (Bad Credit) - Posted by fitzroy wedderburn

Posted by fitzroy wedderburn on August 26, 2004 at 18:37:31:

Im a investor that is seeking a hard money lender. If you could give me a helping had. Thank you fr your time