Your Key Ideas for Self Starter Financing of Your Real Estate Fortune

There are two ways to self-start your real estate financing (1) acting on your own, and (2) using others to find the loan money you need for income real estate investing.

When acting on your own you can work as a Loan Originator, a Finder, a Financial Broker, a Loan Officer at a lender, or form your own mortgage company with investors to make mortgage loans. Each role has its advantages for you.
Before you become a Loan Originator, pick the types of properties you want to work with single-family, or multifamily. Your earnings per transaction will be smaller with single-family homes. But if you're just starting, single-family homes will usually produce earnings sooner.
Finders can set up easily. But you must know mortgages and how they work before you can really help people. So be sure to read this entire article carefully before getting started as a Finder.
Financial brokers handle both real estate and business loans. As with a Finder, you must get training and enough knowledge of loans and mortgages before you can really help people get the loans they seek.
Working as a Loan Officer can give you valuable experience and training. You might even have one of your associate Loan Brokers approve your Loan Application! Why? Because once you know what your lender seeks in a loan you can prepare a Loan Application that is almost impossible to refuse!
Forming your own mortgage company using investors to supply the needed funds is an advanced way of raising money for your deal. You should have experience with mortgages and lending before taking this step!* Using others to raise money for you can save you time and embarrassment, while you continue working at acquiring the real estate you want.

I've Found My "Dream Property but My Credit Is Bad

When these people come to me they've often found a "dream property. It's usually a multifamily building that will give them a strong Positive Cash Flow (PCF) often as much as $10,000, or more, per month, after paying ALL loans they've taken on to buy the property. The $10,000+ per month PCF has their brain spinning.

"What can I do, they moan. "I just have to have this property with that gorgeous cash flow!

My answer will vary, depending on the reader's credit situation. To help you, or a relative or friend, cope with such a situation, here are valuable answers.

Use Lenders That Accept Bad Credit

Some lenders will work with bad-credit applicants if:

The property you want to buy is in good condition and has a strong PCF.
You have a sensible Business Plan for the property showing how it will pay for itself when you're managing it. What kinds of lenders may overlook bad credit and look at the property instead?
Private Lenders see article 5 may overlook bad credit if the property (called the Subject Property) has a strong cash flow.
Yellow Page lenders may accept bad credit for loans backed by strong property. So look at your local large-city Yellow Page telephone book. Look under the "Mortgages, Loans, and "Real Estate headings. In it you may find lenders that advertise: "Bad Credit Okay; "Bankruptcy, No Problem; "Judgments, No Problem; and so on.
Read your local large-city newspapers. In these listings you may find ads for real estate loans using many of the same terms you'll see in the Yellow Pages.

Check Out Sub-Prime Lenders

As you know, Director of a large lender that makes many different types of loans. But the largest category of loans we make are real estate loans. More than 75 percent of the loans we make every year are for real estate.

In making these loans we classify borrowers thus:

A credit = a person with excellent credit (FICO score = 700+); no history of late pays, slow pays, or no pays.
B credit = people with a few missed or late payments. But the payments were eventually ALL made. Some payments, though late, were caught up with later with double, or triple, payments (FICO score = 600).
C credit = many missed payments, late pays, or other credit problems on loans (FICO score = 500, or less).
D credit = no, or very few, payments on loans made to the person. Such people may ignore any loans they receive and seldom repay the debts they have with lenders.

Any loan made to a borrower with less than "A credit is called a subprime loan.

To protect themselves, lenders charge a higher interest rate to borrowers having less than A credit. But lenders today are finding that: Sub-prime borrowers are worth giving another chance at receiving, and repaying, a loan. If you have bad credit, you could be given that second chance.

Sub-prime borrowers are nearly a $1 trillion market for lenders; to ignore such a market is foolish for people like myself and the lender.

Sub-prime borrowers are usually so happy to get a new loan they repay right on time, in an attempt to improve their credit rating while showing their appreciation.

Sub-prime borrowers today mostly seek loans for real estate either for an income property to improve their cash flow, or for a first home.

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