Bad credit doesn’t have to derail efforts towards building passive retirement for your income through real estate investments. While conventional lenders may turn you away over your past transgressions, they are not the only option available for funding investment property. While the perfect scenario would be to repair your credit issues and then gain financing on your own at lower interest through conventional methods, this could take years. The sooner you invest, the sooner you can increase your current cash flow and the more your long-term returns will be.
Read on to discover five ways to buy investment property in Detroit when you have bad credit.
Networking, gathering with like-minded Real Estate Investors allows you to begin building Connections in the real estate industry. Having a support team around you that you can rely on is imperative to success as an investor. By spending time getting to know other investors, you can find someone you click with and offer a partnership, bringing the skills you have to contribute to the table, with their financial backing to buy investment property in Detroit when you have bad credit.
A private loan is a secured contract or a mortgage created by a private individual that may be a friend or family member or by an investment firm that will allow you to buy investment property in Detroit when you have bad credit. Because of the risk, they can charge you a higher interest rate, though there are limits in place setting a maximum amount allowed. The lender will benefit from helping you through the passive income they will earn on your repayment of the principle and the interest over the life of the loan.
Borrow from Family
Family is often ready to help you buy investment property in Detroit when you have bad credit because they understand that an investment for a more extended period allows it to earn higher passive income. Providing for a better life quality during your retirement years is their desire on your behalf.
While handshake agreements among families are often acceptable, it is wise in such a financial matter of import to have the loan secured by a promissory note to avoid any possible issues down the road. Typically these loans carry a much lower interest rate than you would otherwise be able to qualify for, with a poor credit score. The IRS has set a minimum on the amount of interest that The IRS will impute upon the lender if they do not charge interest to you on loan.
Sell Other Assets
It may be time to trade in your treasured collection of baseball cards to buy investment property in Detroit when you have bad credit. If you don’t happen to have a valuable collection or a vintage car to trade in for investment property, you would be amazed at the gems you can find when raising funds. Necessity often forces people to discover just what they have in all those boxes. You may be surprised at the value hidden within what they consider dust collectors sitting in the corner of an attic or basement.
Work with We Buy Houses in Detroit
The experienced professionals at We Buy Houses in Detroit make it easy to buy investment property in Detroit when you have bad credit. We Buy Houses in Detroit has inventory available, and private lenders are looking to work with people who can find deals with high returns. Working with We Buy Houses in Detroit means you can still purchase investment property no matter your credit score. At We Buy Houses in Detroit, we are happy to answer any questions or concerns you have with no obligation. Just call We Buy Houses in Detroit at (313) 246-4551 or send us a message today!