Posted by James Strange on September 19, 2004 at 18:01:26:
They prefer that it is all your money. But they will look at it as long as you have 10% and closing cost of your money in the deal.
Plenty of money with BAD CREDIT - Posted by Theo
Posted by Theo on September 19, 2004 at 12:20:02:
I want to get into investing but I have very bad credit. However, I have about 60k of personal cash. Is there any way I can use this money as some sort of collateral to get into investing?
Re: Plenty of money with BAD CREDIT - Posted by James Strange
Posted by James Strange on September 19, 2004 at 13:18:13:
Theo,
Large down payments can often take the place of good credit. Lenders like to see that you have something in the deal.
But since I don’t know how bad your credit is and how big the deals are that you want to do I can only give general advice.
If your credit is kind of bad you can get away with 20% down.
If it is real bad you can do deals with 30% down. I know one lender who with 30% down and a good plan they will lend to almost anyone. But the plan must be solid and min loan size is 100k.
Re: Plenty of money with BAD CREDIT - Posted by kris
Posted by kris on September 19, 2004 at 15:53:14:
"I know one lender who with 30% down and a good plan they will lend to almost anyone. But the plan must be solid and min loan size is 100k. "
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Can Seller finance that 30%. Or must you have your own cash in the deal. What if Seller will carry a second for 30%, would your lender do the deal regardless that buyer may have zero money in the deal?
Kris