For most people, a house can be a costly acquisition. Chances are, the house you live in is one of the biggest purchases of your life. And the property investments you acquire may not cost as much but it’s possible that you might be thinking about using loans and mortgages to buy those investment properties.
You might be wondering, like a lot of investors, how to buy an investment property with bad credit for savvy investors in London.
Fortunately, there are at least 4 simple ways to acquire investment properties even with bad credit.
These 4 Ways Describe How To Buy Investment Property With Bad Credit For Savvy Investors In London
Strategy #1. Use the money you already have. Many investors have money they may not even realizse. For example, you might have equity in your home or business that you can borrow against, which you might not need an additional loan. Or you might have money in your ISA or retirement account that you can invest with. Few people realise that this is even possible – but it is!
Strategy #2. Use seller financing. Seller financing is when you acquire a property but instead of getting a mortgage through a traditional lender (like a bank) you instead get financing from the seller themselves. You simply pay the seller your “mortgage payment” every month until the house is paid off. The seller may not require good credit because ownership of the house would revert back to them if you default on your financing.
Strategy #3. Partner with another investor. One very common strategy is to find another investor who has good credit and then partner with them. You combine their good credit with your skills, sweat equity, network, or some other contribution, and you split the cashflow between you.
Strategy #4. Find a cash buyer. This is an advanced way if you’re looking at how to buy an investment property with bad credit for savvy London investors. A cash buyer is someone who has access to the money right now, perhaps sitting dormant in an account or maybe in one of the ways described above, such as in an ISA or retirement account. In some situations, you can acquire a property and then sell the property to them without using any of your own money.
There are other ways too, but this is a great way to invest in property even if you have no credit.
Summary: How To Invest With No Credit
No credit? No problem. Property investing is one of the ways that you can invest, even if you have no credit or bad credit. You just need to get creative, connect with the right people, and put deals together in different ways than you might be used to… but credit is not needed.