Using Private Money For Investing  With Little to No Credit

Utilize Private Money as alternative lending

You don’t have to use traditional financing. For example, years ago, credit cards were issued for people to buy primarily consumer goods, but using them to purchase and fix up properties. Then, banks would give a business line of credit much more easily than a mortgage.   These people, again, used these funds to rehab property.

By using private money, you’re not using your credit to do deals and you’re limiting your overall risk.

Joint venture

If your credit is less than perfect, consider joint investing with a partner on properties. It’s plausible that you may have money tied up on other projects and funding maybe difficult to aquire when an opportunity presents itself.  Why not bring in a partner who is eager to make a quick return

Think outside the box for investment opportunities

Sometimes, we can just invest without needing credit. This can often be done when you take control of an investment without it being in our name. A perfect example of this is the “sandwich lease option,” where you lease a property from an owner then turn around and sublease it to someone else. Now you’re getting a security deposit and a monthly cash flow on a property you don’t even own.

Another way to invest without needing credit is in “subject-to” deals. This time you’re taking title to the real estate with the existing loan remaining in place, and this is not attached to your credit. Additionally, you have ownership and control without using your credit?

Private Money Investments That Don’t Require Credit

There are some investments that give off cash flow without requiring credit like investing with notes. The one great thing about buying or investing in a note is you just need the money. So, whether you’re just starting out with a small amount of money or using a platform like Chicago Rehab Loans, this can be an excellent alternative to get projects moving and without delay.

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