Investor with bad credit - Posted by Timbrekus Grier

Posted by PBoone on August 07, 1999 at 21:43:37:

Start looking for the properties that are vancant, run down and / or have been on the market for sale by owner for awhile.
Realtors usually are looking for the easy buck and haven’t a clue about REI. Use the 95/5 rule with realtors. 95% clueless or lazy 5% know the game.
You probably can purchase many properties, but the key is to purchase and make a profit.

Investor with bad credit - Posted by Timbrekus Grier

Posted by Timbrekus Grier on August 07, 1999 at 20:06:58:

This is my situation. I am in the military and I am in debt. My credit is very poor because I got my first credit card at 15-years old and did not have a job. I don’t know how that happened but as you can guess I messed it up. So I guess I was very creative back then. Anyway I own a vehicle that I can’t afford but I have managed to keep it by the grace of God for almost 2 years. I live in government quarters and I am 23 years old and married with a lovely baby daughter. Now!!!
I own the C.S. course and I have started to use it,however everytime I get on the phone and question sellers about properties they want to know my credit worthiness before I can even start asking questions about the properties. And some of them show flexibility in their ads. So when I tell them that I have no money to put down and no line of credit they don’t even want to talk to me,especially real estate agents.
My question is am I even looking at the right properties or what kind of properties should I be looking at with my situation. This feels like I am wasting my time and my time is very precious and limited especially being in the military. With my situation what kind of properties and sellers should I be looking for EXACTLY.

Re: Investor with bad credit - Posted by Jim IL

Posted by Jim IL on August 15, 1999 at 23:58:21:

Brian hit the nail right on the head.
I too used to think like you. I would look relentlessly for “properties” and see which ones would “work”, in creative Real Estate Investing.
You know what? I did that for 2 years, and did not do one single deal!
Then, I read the articles here, posts and even went to the chat room and watched the conversations.
Once we realized that we needed to look for “sellers” and not properties, we moved ahead.
I am not by any means rich, nor am I close to my goals, but I can most assuredly see the light at the end of the tunnel.
We (my wife and I) have now done several deals, and NOT once have we used our credit.
We have had motivated sellers ask about our credit, but we never gave a credit report. (Thank goodness too, because my credit is BAD, from the same things you mention).
For the sellers that asked about our creditworthiness, the concern was not that we had good credit or not, it was whether or not we would perform and fullfill our obligations.
We answered that with references.
On that deal, we generated a letter that listed people they could contact about us.
Since we were new, we included friends, associates and other people we had done business with, just not REI.
Most times, when the seller is motivated, they only want assurances that you will make the payments and that you can solve thier problem.
Act professional and do what you say.
Your first impression is important.
Also, for your first deals, forget RE agents, they are a waste of time.
Most do not understand what we do in Creative RE, and therefore reject it outright.
As J. Behle told me recetly, “a confused mind always says NO!”.
He was/is right.
Get out there and look for motivated sellers.
Call all FSBO ads, signs, and make yourself known.
Post flyers, business cards and run an ad in the paper.
It will take time, but eventually it will pay off.
It did for me, and is continueing to do so now.
We are now Full time REI’s and enjoy freedom of choice.
We have yet to obtain financial independence, but I can see that my efforts are paying off.
In two years I WILL BE where I want to be, maybe sooner.
Just keep pounding the pavement and you’ll find those “Sellers”.
Also, when you get a chance, go read the “How to” articles here. Jim Piper has one about talking to sellers and it is good as gold.
I use some of his methods and they work!
Bottom line is, listen more than you talk.
Allow the seller to tell you what they “NEED” not want.
Hope this helps,
Jim IL

Re: Investor with bad credit - Posted by B.L.Renfrow

Posted by B.L.Renfrow on August 13, 1999 at 19:01:40:

What you need to do is stop focusing on finding “properties” and focus on finding motivated sellers.

A seller who is about to be foreclosed on, or who needs to move to another state to start a new job next week, or who can’t pay his taxes, won’t give a hoot about your credit situation.

If the people you are calling are asking first about your credit, you’re not talking to the right people. Don’t waste your time with real estate agents, not at this point. As you’ve already discovered, you won’t be taken seriously, so don’t bother.

How do you find the motivated sellers? For starters, like Pat said below, the ones with places falling apart, abandoned, needing lots of cosmetic work and so on are likely to be in that catagory. It really doen’t much matter if they live in a shack or a mansion, if they are sufficiently motivated, that’s who you should be working with.

Check out some of the posts on Newsgroup 1 and look at some of the books/courses available, decide where you want to start and as soon as you can scrape together the money for the one(s) that sound right for you, that’s what you need to do. CS is a start, but from my understanding (I don’t have it and have never seen it) the info is pretty basic and maybe a little dated.

(And just a thought here, but if you can’t afford the vehicle you’re driving, dump it and get a good used Hyundai or something like that. I’ve been there.)

Good luck to you…

Brian (NY)

Re: Investor with bad credit - Posted by Donielle Head

Posted by Donielle Head on August 12, 1999 at 18:16:10:


First off don’t sweat it. There is a book you can buy on the internet. Go to ‘Alta Vista’ and type in real estate investing. Under that you should see something a long the lines of ‘How to by Real Estate when you’re Broke & Bankrupt’. I ordered it and am waiting for the book. My credit is not good either but that won’t stop me from becoming financially independent.