Getting financed by buying property? - Posted by Gary

import · February 25, 2004, 6:17pm

Posted by Gary on February 26, 2004 at 21:52:33:

can anyone answer the question directly?

import · February 25, 2004, 6:17pm

Posted by Gary on February 25, 2004 at 19:17:53:

I am looking to start investing in real estate. I have very bad credit but i just came across a chunk of money. My question is; after i buy my first investment property (under 50,000) will i still have a problem going to the bank to get a loan for another investment? What i plan on doing is to buy property then rent it out. I am new here, so please be gentle

import · March 20, 2004, 1:06pm

Re: Getting financed by buying property? - Posted by Lloyd Manley

Posted by Lloyd Manley on March 20, 2004 at 14:06:10:

Hi,
The answer is, yes. Having existing collateral will strengthen your position with a lender. But what they are trying to say is that having your finances in order (removing encumberances, paying regularly) will go farther in making you money than having collateral.

import · February 25, 2004, 7:48pm

Re: Getting financed by buying property? - Posted by Keith

Posted by Keith on February 25, 2004 at 20:48:50:

YES, If you buy your first home with cash you have done nothing to change your credit score. You need to get a copy of your credit report from all three credit bureaus and go line for line and attack all the negatives.
If you have small outstanding balances and collections take that chuck of money and clear those things up before buying your first investment property. Then go out and get a credit card (secured if you have too) and use it, then pay it off every month RELIGIOUSLY. Depending on how bad your credit actually is you may be able to finance that 50K investment property quickly rather than paying all cash. And of course, if you do obtain a loan and pay on it RELIGIOUSLY that will help your score out as well.

Just a couple of ideas for you,
Keith

import · February 26, 2004, 10:54am

Re: Getting financed by buying property? - Posted by Gary

Posted by Gary on February 26, 2004 at 11:54:38:

Keith,

Thanks for the info. But my main question is, Because i would own real estate, can i go to the bank and get a loan with bad credit, because i would have assets?

import · February 26, 2004, 4:17pm

Re: Getting financed by buying property? - Posted by Ken

Posted by Ken on February 26, 2004 at 17:17:19:

Don’t put the cart before the horse. Work on your credit scores first. Good credit scores will give you better interest rates thus saving you more money. Your best asset is your cash. Remember, Cash Is King.