A lot of uson here do not have good credit or finances that would allow us to get up and go out there and just start purchasing. I get a lot of mail asking about how to get started so I am going to drop a few suggestions. I am sure they probably have been addressed on here somewhere but I am putting them out again.
1. Ask family member with good credit or credit strong enough to get a loan. Most will say no, but you might try telling them that you will make them an equity partner and pay them back a percentage of the profit upon the sale of the property.
If you are just wanting to use their credit to get a pre-approval letter to lock up the property and assign it before closing, then tell them that and offer them 5% of your profit for letting you use their letter.
2. Find a Hard Money Lender or a Private Lender and do all of your paperwork with them beforehand. Then once you get assigned a person that you will be working directly with, get the Proof of funds letter and start locking up properties. As for your portion 15-20% that they may want to see in reserve, set your top price on purchase, lets say you will only look at properties under 50K then you need will only need to show 10K in funds for yourself, so go find a friend or relative and get a copy of their bank statement and cross out all of the personal info and use that. They only want to see that you have access to it. Or better yet, have the person that has the money transfer it to your account then get bank printout showing it in there then transfer back to friend/relatives account. You have to use our mind and be creative sometimes.
2. Ask the owner if you are dealing with a FSBO (for sale by owner) to raise the price enough so that they can carry your down payment and closing cost, yous should should only have to pay for insurance and appraisal if that.
I know there are a ton of other ways but I just wanted to post this up as a quickie to get the info out there. I hope it helps. For more in depth info, use the search bar in the upper left and type in your keywords and search the forums for more great answers.
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