If you’ve got bad credit, you probably think that real estate investing is a pipe dream. Something other people do, people with money, and credit. I mean, if you can’t get a credit card, there’s no way you can start investing in real estate, right?

Well, you might think so, but actually, you’d be wrong. There are ways you can get started in real estate with bad credit, and here’s how:

Conventional Loans

You can get a no money down conventional loan with a credit score well below 620. In fact, people with scores as low as 527 have got credit this way. You will pay more in finance and interest charges, but you can do it.

Rehab Loans

Rehab loans are intended for people who plan to flip property. They use the property you buy as collateral, so you may be able to find a financier for your real estate investing goals this way. The loan will be for a maximum of a percentage of the after repair value of the loan, so you’ll need to find a great fixer upper that you can make a lot of money out of to finance the project.

Wholesaling Houses

Wholesaling houses as a real estate investing strategy is based on finding a cash seller, and a cash buyer, at the same time. Your role is purely as an intermediary, and you make your money off charging the buyer more than the seller’s asking price.

Since you never technically own the property in question, there’s no need for credit, and since the two deals are set up at the same time, there’s no wait for your profits.

Start a REIT

A REIT, or real estate investment trust, is a company set up to buy property, that offers certain tax benefits. Since a REIT can have many shareholders, and will have a separate credit rating based on all of those members, you might be able to use the REIT to access credit.

On the other hand, if you start a REIT, with say, ten members, and each member contributes a small amount, which you may have saved up, or can borrow from family or a financial institution, or even take out of your 401(k), you should be able to buy your first property to flip cash. You’d have to split the profits, but it will minimize your individual risk.

As you can see, there are ways to get into real estate investing without a great credit score, if you use a little ingenuity and creativity, and you set your mind to it. Property investing really is for everyone, and if real estate investing is your dream, there is a way to do it.

Why not look into some of the options mentioned above, pick the one that meets your needs, and get working on that first million today?

By: Alex Nghiem

About the Author:
Learn More About Real Estate Wholesaling Download the FREE Wholesale Manifesto Now: Click Here

Alex Nghiem is the co-founder of several Real Estate investment websites and is a well respected coach. His latest project is the just completed Wholesale Manifesto. Learn All about – Real Estate Wholesaling Here.