What type of loans can I get with basically no credit

If you dont want to rely on your credit, use private lenders. There are plenty of them around. Also you can consider hard money lenders, they dont base your lending on your credit score but the type of deal you bring them to the table. I like working with private lenders as most times they are easier to work with and likely flexible to better terms when compared to CDs, stocks, saving accounts, etc.

PML and HML charge high interest rates; you use them for short term loans or transactional funding only, not for a longterm loan.

Valerie

You said your credit is aboutg 626, which could qualify you for an FHA loan. Typically FHA loans require a 620 credit score with about 3.5% down. Also there is a USDA loan that requires about the same credit score but does not require a down payment, but it is area specific. Both of these loans are only for an owner occupied home. If you are looking for loans for investment properties you will need 20% down to start with. I would suggest that you talk to a loan officer or a banks mortgage department to see what they require for you to qualify depending on what type of loan you are looking for.

That sounds like OK credit to me.

WHERE OR HOW DO YOU FIND THEM?

Yeah, where do you find them?

You can start by going to your bank and getting a unsecured/signature personal loan. Just ask whats the most they will lend you and take it.

After you get this loan, pay the paymnts 4-5 days early. Pay the 2nd paymnt double. then continue to make your paymnts early for 7-8 months and then payoff the loan. Keep the loan active for at least 6-8 months so that its reported on your credit.

A month later, go back to the lender and do it all over again, except this time ask for 4 X MORE, this will build your credit and score quickly.

Example:
1st loan $5,000

2nd loan $20,000

3rd loan $50,000

Remember this is an unsecured/signature loan and if asked what you want the loan for, its to build your credit, personal loan.

After a while of being responsible and repaying early, you have built your credit/score and a relationship with the lender which will lead to be able to obtain large amounts just by signing your name.

DON'T mess up and buy TOYS

Jill & I have 800 credit scores, own 3 houses free& clear, have a S-Corp for max. tax deductions, own 3 new vehicles free & clear & can NOT get a loan from a bank due to debt to income ratio. We have tried looking for private lenders but can't find any to pay 10% APR, despite living here in Fl. where there are many older people with money in the bank getting less than 3% APR. We have done about 40 houses where we have bought/rehab/flipped. We have to buy all our houses using our cash which limits how many we can do at a time! These are properties we buy & are deeded in our names, we do not wholesale. Even having about 20 credit cards with "0" balances only leaves taking cash advances & paying high % fees despite low interest rates. While we have bought a house using a credit card prior, it was when the market was better & I knew we could flip it quickly with a 45% to 50% return on our investment. Now with our profit margins less, I am more uneasy to acquire more debt!

That was very good information. While I do have good credit it also tell me how to get a small loan to start out in this business if I need it.

There is only so many loans you can get these days, and banks are very leary about lending to corporations these days.
I've also been using some of my credit cards with a 0% interest for 12 months and a 3% fee...

It's a no win situation; either you pay a lot of taxes or you can't get a loan!

Learning and progressing every day,
Valerie

Although it is true that PML or HML normally charge higher interest rates, they are good source when you hold for the short term. You can find them anywhere. They are people who are probably tired of investing in Certificate of Deposits in the banks, stocks, mutual funds, IRAs, etc. Those investments are not paying that much right now. They could be family member, friends, friends of others (attorneys, doctors, etc), ads in the local newspaper, CL, etc.

You could tap the equity of at least 1 of those properties, use your credit cards, and/or find a partner.

You guys are my heros and mentors. I have read your posts and your story on DG's website. I own 2 SFR's that I rent and am working on a short sale presently. It's been taking a while for the bank to sign off on my offer, but all indications show to an agreement shortly.
I have funded both properties with a private lender. We bought foreclosures at a great price and have since refianced and paid him back. He is now backing this short sale. We hope to have people in by the first of the month and to have a lease/option contract signed. I have also heard the debt to income dance before from the banks, but am blessed to be able to keep on with REI'ing. My privat lender only charges up 9% interest only with a minimal down payment. I lucked out. On the other hand, faith and action go a long way.
Bill from Minnesota

Thanks Bill, we had 4 rentals in NJ & a couple of lease options here in Fl. on properties that we own free & clear. Finding good tenants is difficult here, so that's why we buy, fix, & flip. We've done about 40 right here in the town we live in, it's the most convenient!
DP2, getting equity lines of credit on investment properties from banks is next to impossible, at least around here ... as for credit cards, we have actually bought a house on Chase credit cards using convenience checks; it was a promotional rate of .99% on one & 1.9% on the other. We bought the house for 71K, put 8K in for rehab & sold it for 135K. Dean liked that transaction so much that he put it in his book "Your Town" when he dedicated Chapter 12 to us; I think it was because he also used a credit card to buy property years ago.