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How to Invest in Real Estate Even With A Low Credit Score

By: Elite Legacy Education, November 21, 2017

If you’re wondering how having a low credit score affects your ability to invest in real estate consider this. Your credit score is used by lenders to determine how risky of a borrower you are. Thus, a low credit score suggests you are a high-risk borrower. And being a high-risk borrower may leave you exposed to higher interest rates and unfavorable lending conditions.


But there’s no need to give up hope – here are 6 ways to fund your real estate investment even if you have a low credit score:


  1. Seller Financing


Seller financing is always a viable alternative to investing in real estate - even if you have a low credit score. Typically, property owners don’t check your credit score and if they do, perhaps you can still negotiate with them. This works best with properties that are mortgage-free. Otherwise, avoid properties that still have a mortgage tied to them.


  1. Hard Money Lender


Hard money lenders often focus on high-risk borrowers in exchange for a higher interest rate on short-term loans. 


This is especially ideal for those who flip properties or engage in the BRRR (buy-rehab-rent-refinance-repeat) strategy to real estate investment.


Some hard money lenders won’t check your credit score, although it’s becoming more commonplace nowadays. One option to overcome this hurdle is to present properties that offer extreme profit potential, so the lender can recoup losses by foreclosing on the property if anything goes wrong. These people are still lenders so you must make them feel secure about their loan.


  1. Wholesaling


Using certain wholesaling techniques that require no money down, you can wholesale a property without ever requiring a credit check. However, this option is not for the faint of heart. Wholesaling is a great place to start but it requires lots of work and sheer hustle.


  1. Private Money Lender


Private money lenders are yet another option to finance your real estate projects. These tend to be people you know whether online or in person. These people are looking for diverse projects to earn higher returns compared to typical investment channels. This could be your friend, a family member or anyone else you may know through mutual friends, organization and so on.


  1. Partnerships


Never rule out the option of a partnership when it comes to your real estate business. Often, you can find others with complimentary contributions to the team. One person may be the high credit score and funding source, while another is an expert in the hands-on portion of real estate investment.


  1. 401k loan


If you have a 401k you may be in luck. Many 401k plans allow you to take out a loan against your balance. Keep in mind, this is not the same as withdrawing from your 401k.




There's never a shortage of money looking to back a great deal. It's simply knowing where to find it. By attending an Elite Legacy Education event, you will be introduced to a variety of funding sources and our Elite Legacy Education speakers will demonstrate which sources fit different types of real estate investments.

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