Why Credit Doesn’t Matter For Real Estate Investing
Foreclosure, Short Sale or Bankruptcy on your credit record? When it comes to getting a loan for investing in real estate fix and flip projects the borrower’s credit is never a deciding factor. The reason for this is that the loan is an asset based loan, meaning the lender is secured by the value of the underlying property. [pullQuote position=”center”]An asset based loan means that the borrower is being loaned money to buy a property that the lender can repossess if the borrower misses any payments.[/pullQuote]
This provides a great opportunity for someone who has had credit issues in the past to be able to get funding and quickly turn a profit. There are very few legitimate investment opportunities out there that provide the possible high rates of return, opportunity for seat equity and are also open to someone with poor credit history.