Ways to Do a Deal with Bad Credit and No Money Down

Real estate investing, whether doing house flips or commercial, follows the traditional axiom of “In order to make money, you need to have money.” Or so it seems. This article will showcase how this isn’t necessarily the case, and provide you options to acquire real estate with no money down, or with bad credit. Note that these are not guarantees, they’re techniques. Like all techniques, and most advice in real estate investing, they won’t do you any good unless you follow them carefully, and know when not to follow them to suit the deal you’re brokering.

First and foremost, you need to ask the classic question, “What’s my motivation?” Or, rather, you should know your motivation already – you should be asking yourself what the seller’s motivations are. These provide the key to understanding what the seller really needs (rather than what they want) and will provide insight into how to make the deal happen, even under less than ideal circumstances. Is the seller trying to get out from under the house to facilitate a new job? Have they experienced a financial setback? Are they in danger of a home foreclosure? It’s not quite a case of “search out the desperate sellers”, but knowing why they want to sell now and what they need is a clue on how you structure the deal.

Structuring the deal is a mind set, not a recipe. The mindset should focus on mutually beneficial arrangements. You benefit from doing the deal, the seller benefits from doing the deal, and both of you succeed. Again, knowing your seller’s motivations are important here, because they’ll tell you what the victory conditions are.

Making the deal happens means finding a way to meet the down payment. There are numerous options, and what follows is at best a summary.

First, and perhaps the simplest, is getting a loan. With good credit, getting a loan is easy – with bad credit, in the current subprime loan meltdown, it’s not. (To be fair, given the amount of truly horrific loans written in the last three years, the subprime loan meltdown is having a softer landing than any analyst expected). That’s all well and good, but if you don’t have good credit, this may not be a straightforward process.

To unbind the kinks in the process, try finding your qualified buyer first. When you have a buyer lined up for a home, finding a seller (and finding financing) is vastly simpler. Sometimes called the “forward flip”, the drawback of this option is time – you can lose the deal if you can’t find the inventory in time, so do your research on what’s available and for sale first, then run some ads, and try to do some matchmaking – the buyer pays you cash down, you use that to secure the loan to acquire the property, and to pay for the renovations to make the flip happen; provided this can be done quickly, it’s a win-win-win situation.

The second way to streamline the process is to find something the seller wants that you can provide – trading skills for equity can work nicely. In similar vein, leasing the property with option to buy can get your fingers into the property now, while you work to secure financing, and find a buyer to sell the flipped home to.

If you can gather up approximately 65% of the asking price of the home you’re selling, securing financing is straightforward, and often doesn’t involve a credit check at all. This is often called a “hard money” loan. The trick is gathering up the money to do so; the most straightforward method of doing this is getting an investment partner; either 50/50 or some other split. A secondary way to do this is to put another property up as collateral for a secondary loan; by staking the loan with something of comparable value, you can attempt to get your existing housing inventory to help you acquire new inventory. Variations on this technique can include getting a co-signatory on the loan, or investigating federal loan programs, this can get complex if you’re not careful.

Related to this, and again tying to the question of what does the seller truly want, is the option of swapping properties. Again this is a way to get your existing inventory cleared out to something you feel is better suited to the marketplace you’re in. Indeed, even if you don’t have the exact inventory desired for the product swap, making a two way or three way transaction to do this can help convert a property rich portfolio into a capital rich one.

The last variation on this theme is having a seller carried loan. A seller carried loan allows the seller of the property to “sell” the equity that’s been accumulated to you, and receive it back in payments at mortgage interest rates, which are typically higher than the rate of return he’d get by putting the cash directly into a bank account. There are risks involved, and you’ll want to do a partial equity deal on this sort of structure, because a lot of sellers don’t feel that a sale has been consummated without money changing hands. This can be combined with hard money loans and cosigner loans, though; again, there is the potential for a lot of complexity if you aren’t careful.

All in all, by focusing on structuring the deal, it’s quite possible to get into a real estate investment with no money down and poor to mediocre credit. Focus on making the deal a mutual win-win-win, and you’ll be significantly happier with the outcome.

Instant Approval Personal Loans Solves Your Monetary Needs Swiftly

Time doesn’t wait for anybody whether the individual in concern is a business tycoon or a small full time working employee. Everyone is treated in the same coin when your payments are due and you fail to deposit money on time. In such situations you are in dire need of loans that gets approved in a nick of time and satiate your monetary needs. Whenever people have immediate cash requirement, instant personal loans is the best option available online and offline as well.
If you have a good credit history i.e. you have never been a defaulter previously, you won’t face difficulties in getting instant approval on your loan application. And, if you have been defaulter in past, moneylender needs an assurance of the timely repayment of the loan. In the former case almost any moneylender or financial aid institution will readily give you instant approval personal loans in UK. Since, past credit records ensures your credibility for the repayment of the loan on time. Sometimes due to your good credit scores moneylenders do not even ask for your house as collateral which becomes an additional benefit of instant approval personal loans.

Information technology has tremendously changed the communication scenario. Earlier, loan application in a financial institution or bank had been such a cumbersome and time devoting task and now everything is done swiftly and quickly on wires i.e. online. If you are applying online, you are free from hassles of filling lengthy application forms, documentation copies, etc. You can easily fill online loan application form and submit it there and then along with documents required. Your application is processed as soon as you submit the form and with in the span of a day you get confirmation call from the banking or financial institution executive who confirms your professional and personal detail on phone call. After the verification is done your money is transferred to your personal banking account instantly.

Instant approval of the loan application is the most important issue to be worked on after the rate of interest. Besides if you have to meet payday demands and your loan doesn’t get approval on time, what would be the use of loan sanctioning after you have become defaulter? And, people seek for personal loans only when they have such a pressing demand of money.
In order to apply for instant personal loans you must qualify the following criteria as laid by financial institutions:

o You must be a UK citizen with id proof
o Must have good employment record
o Must belong to age group of 18 years and over
o You must have a current personal banking account and a verified debit card

Usually instant approval personal loans have lower interest rates as house is used as collateral against the amount of money borrowed. Apart from this if you also have good credit history; there are chances of further reduction in the interest rates. Usually these loans are borrowed for longer time period and this is why the rate of interest is comparatively less.

Personal Loans With Bad Credit – General Information

The economy is in a slump, everybody knows this these days. If you are a victim of this bad economy or just made some bad decisions when you were younger and now have bad credit, you know that trying to find a loan for anything is nearly impossible. Forget it if you want to get a mortgage for a home! Yet, even in this tough financial time, there are many companies around who know that there are honest people struggling and who are willing to help them out. They can do this often through what are known as bad credit personal loans. The following information will help you to get these kinds of loans, even with bad credit.

Why Personal Loans

Because of the nature of this economy and the reality of the discrimination that is faced by those with bad credit, personal loans are seeing a real renaissance in the lending industry. Even someone with a credit score of 100 can get a personal loan, and the process of paying it back will help that person in the future by improving his or her credit score.

Personal loans are a great way to get money quickly when you are in a pinch and they are widely available from several different lenders because of competition. Basically, there are so many lenders out there competing for a limited business that you are likely to find several who are willing to offer you a line of credit at any given time.

Who Can Get Bad Credit Loans

Like I mentioned before, even those with a really low credit score can gain these loans from someone. This includes those with CCJ’s and IVA’s, as well as arrears and defaults. Personal loans are literally for everyone. Also, they can be used for anything from paying bills to home improvements.

Types of Personal Loans Available

Personal loans can be taken in both secured and unsecured fashions. A secured loan generally carries a lower interest rate because it is borrowed against some real asset such as a home. Basically, by offering something as collateral, you give a financial institution insurance should you be unable to pay the loan back, leading to less risk and a lower interest rate as well as a higher line of credit.

Who Will Offer Personal Loans

Obviously, you can get a personal loan from a bank, but there are other options as well especially if you have poor credit. A really important step in this whole process is research. Be aware of your option in terms of lenders as well as the details of the loans that they offer, such as interest, penalties and payback schedules. Find the loan that is most affordable as well as one that has terms that you are best able to meet.

Where to Apply

The internet is a great resource for those in the market for a personal loan since it will provide you with several options in terms of lenders with little leg work. There are ways to receive several quotes at once which will help you to compare the deals that each institution offers. This way you can literally put the offers side-by-side and make sure that you are getting the best deal.

Generally, all you need to do is fill out a simple online form and then you will be contacted directly by the lenders. Once a loan is approved, you can expect to get the money within one day and it can be sent directly into your bank account.

Even if you have bad credit, you can get a loan if you know what to look for and where to look. There are so many lenders out there who are willing to compete for your business, you just need to find them.