Many Americans will find themselves in the position of having “bad” credit at some point in their lives. However, bad credit does not have to keep you from your dreams of real estate investing. With hard money loans Texas, credit problems can be no problem at all.
If you have bad credit, you may feel like you can never catch a break. Everything from car loans, to home mortgages, to store credit cards may be out of your reach. However, it is important to know that you are not alone. Bad credit is classified as a FICO score of less than 640 and nearly one in four credit using Americans fall into this category.
A low FICO score might make it seem like real estate investing is out of your reach. This is simply not true. With hard money loans Texas from Texas hard money lenders, the real estate investment market is within your reach. This is because hard money loans Texas are not based on your credit score. Instead they are based on the merit of the property you want to invest in. Texas hard money lenders are in more than the business of giving out loans, they are in the business of making money, for you and for them. If you have an idea that will yield substantial profits, they are usually willing to look past your less than ideal credit score.
If you are going to invest in a property with Texas hard money lenders and you have bad credit, you need to keep a few things in mind.
1. You will pay a higher interest rate for the loan. You are a high risk borrower so your hard money loans Texas will come with a higher price tag. Keep in mind that this is meant to be a short term, for profit loan and make sure you have an exit plan.
2. You need to be taking active steps to repair your credit. If you come to your Texas hard money lenders with terrible credit, no job, and are late on multiple payments, you can expect to not get a loan. You need to be able to show that your credit problems are a minor setback, not a regular habit. This means start making payments on time and have a source of income.
3. Come in with a plan. Have a property you want to purchase and timeline for selling it, as well as a realistic budget. Convince your Texas hard money lenders that YOU are a good investment.
4. Get to work and make money. The faster you complete your project, the less interest you will pay.
5. Enjoy your profits, rebuild your credit, and keep investing in real estate!
That’s it, pretty simple, right? Call us today to get started!
Texas Tel: (512) 516-1177
Dennis has been married to his wonderful wife for 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.