Can You Invest in Real Estate With Bad Credit? (Maybe… Here Are 5 Ways to Do It)

by Brandon

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Can You Invest in Real Estate With Bad Credit? (Maybe… Here Are 5 Ways to Do It)

One of the most common questions I am asked each week on the live BiggerPockets Webinar is simply, “Can I invest in real estate with bad credit?

It’s a great question, considering twenty-five percent of Americans have a credit score of less than 600, according to the Wall Street Journal. That’s a huge chunk of individuals who are unable to obtain a mortgage, thus making real estate investing a difficult task.

So, can you invest in real estate with bad credit?

Well, I have good news, and I have bad news:

  • The good news is YES; you can invest with bad credit. Later, I’ll explain five ways to do it.
  • The bad news is you probably shouldn’t. Unless… (We’ll get to that. But first…)

Why Do You Have Bad Credit?

Bad credit can happen for a variety of reasons. Perhaps medical bills caused the issue, or maybe identity theft. Maybe a person lost their job and had to miss some payments. The economic recession that started in 2007 led millions of Americans into financial difficulties, destroying millions of credit scores in the process.

But also, sometimes bad credit is caused by good ole fashioned stupidity and ignorance. A credit card here, a credit account there. Vacations, new clothes and other “need-it-now” luxuries have caused thousands of people to lose their good credit score and wind up in a rough spot.

No matter what reason you have for having low credit, it doesn’t matter anymore. It’s done. You have bad credit. But the real question is:

(click to continue reading on BiggerPockets)

About Brandon

has written 199 Awesome posts in this blog.

Brandon Turner (G+) is the BiggerPockets.com Senior Editor and Community Director and owner of RealEstateInYourTwenties.com. He is also an Active Real Estate Investor (Flips, Apartments, and Buy-and-Hold), Entrepreneur, World Traveler, Third-Person Speaker, and Husband. Come hang out with him on Twitter!

P.S. looking for hard money loans in California? Be sure to check out my friends over at northcoastfinancialinc.com. They have very competitive rates, can fund within a week and specialize in fix and flip loans and other hard money loans.

P.S. Looking for more real estate investing knowledge? If you are interested in a top-notch course to help you understand the nuts and bolts of creative real estate investing, I would like to recommend Ben Leybovich's Cash Flow Freedom University. Ben is a close friend and has been my trusted adviser for years. He's a smart guy and CFFU is pretty awesome. The course is waitlisted, but while you wait for an opening Ben will send you tons of FREE content. Seriously. Click here to check it out.

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