Guilty of sitting on the fence?

[Macguyver]

I've spent years ghoasting the boards and hundreds of dollars on R.E.I courses and kits, even joined the one local rei club they have here for a while. Still haven't made my first offer on a property... I know, "I'll never find a property without making any offers" it's that fear thing, plus a complete lack of confidence in acquiring financing, that have been my main excuses for sitting on the fence for so long. I'm jumping off that fence and have decided to just do it, somehow. I'm still more than a bit concerned with finding financing for the deals I'll eventually find. I'd like to be able to make offers confident that if it's accepted I'll have the financing already. How do I go about this if I'm an underworked self employed (plumber) with a credit score under 630? Doable? Or should I just make my offers and hope that if my offer is accepted I can get financing of some kind based soley on the property/deal. Getting the fixup money's no problem for me(I already have someone who'll lend me that if I need it), just acquisition and short term holding money.

I'm going to jump off that dam fence, regardless what happens. I'd just sure like not to jump into mudhole. Any suggestions/words of wisdom/HELP! here would be greatly appreciated.
Mike.

[Dan Auito]

Well Mike it looks like you have studied some and been inflicted with that disease of paralysis analysis. Yep, time to jump in the pool. I will ask if you read the book yet? http://www.prweb.com/releases/2005/2/prweb206557.htm maybe after all you have already read you don't need it. A 630 credit score is not that bad, most lenders start out with 680 as a minimum (acceptable rating) and numbers below that will get more scrutinization, slightly higher interest rates and so forth. But they will make loans on good property so don't fear your scores.

The best thing to do is to go ahead and visit a couple local lenders in your neighborhood and ask them to pre-qualify you for a loan amount, this process will help you find out if you need or can fix any blemishes to bring your score up while at the same time seeing how much they will lend right now!

It's good you have a lender for the fix up costs, you might ask them if they will co-sign on the acquisiton loan itself, your credit will get better with every loan you take out and payback on time.

Go see some banks and let them take you through the prequalification process, this would be a very good first step.

Here are some financial links if you care to investigate options along the way!

Financial
www.nfns.com (your states mortgage rates & news)
www.myFICO.com (get your credit score)
www.annualcreditreport.com/cra/index.jsp (new law mandatory free reports)
www.icreditcentral.com (bad credit, no credit! go here)
www.creditforum.org/ Ask the pro’s
www.compareloans.com (Charles allows you to compare loans)
www.experian.com 888-397-3742
www.tuc.com 800-888-4213
www.equifax.com 800-685-1111
www.creditboards.com (Fix what you find)
www.bankrate.com (today’s rates and more)
www.bankrate.com/brm/mortgage-calculator.asp (calculator)
www.interest.com (mortgage trends)
www.mbaa.org (solid mortgage news and resources)
www.eloan.com (financial/loans)
www.lendingleaders.com (finance)
www.honestmortgage.net (good definitions)
www.mortgagequotes.com “
www.quickenmortgage.com “
www.mortgage-referral.com “
www.lendingleaders.com “
www.mainstfinancial.net/Loan%20Programs.htm (100%cashout, non-owner occ)
www.interest.com/discussion/ (mortgage discussion)
www.mastermindforum.com/resources/1003app.pdf (print out and fill loan app out)
www.brookviewfinancial.com (rehab lenders)
www.access-100.com (more rehab funding)
www.mtgprofessor.com/calculators.htm (calculator heaven)
http://www.mortgage-investments.com...s/downloads.htm
www.decisionaide.com (32 different calculators)
www.cybernetmortgage.com (calculators/loans - Texas)
www.mortgage101.com (calculators and more)
www.algebrahelp.com/calculators/index.htm (higher math)
www.homefair.com (calculators & relocation info)
www.homebuyingguide.com/default.asp (4free finance books) PDF
www.homewarrantyexperts.com (find a good warranty co.)
www.orhp.com (home warranties)
www.homeloans.va.gov (military forms resource)
www.alta.org/consumer/hud1.cfm (hud-1 settlement statement)
www.notary-services.com/scclist.html (Find a local notary)
www.corporate.com/index.jsp (incorporate yourself)
www.housingfinance.com/ahf/ (Affordable Housing Finance)
:shocking:

[Macguyver]

Thanks for ther reply. No I havent read it yet but I certainly will.

When I said below 630 I meant WAY below 630, closer to 6 0 3 rather than 6 3 0 . Combine that with no (or very limited) verifiable income and never having filed a tax return, ever, and I know better than to waste my time with comnventional lenders. I also know however there are supposedly ways to acquire or flip properties regardless of my credit or income. For me, everything comes down to that first deal, getting the ball rolling. I'm sick and tired of waiting for "Things to get better" or waiting till I can improve my credit scores or...etc. Good credit's not supposed to be necessary, well alright then dam it no more waiting, I'm going to see if that's true. All I know after all this time is that sitting around waiting for an opportunity to come my way hasn't and will not work. Good things don't always happen to those who wait, at least not in my case. "I'm" going to have to make it happen somehow, story of my life. It's going to be a frustrating pain in the ass as usual but, again as usual, I'll fiure it out and do it myself. I'm supoposed to be the smart, tough as nails, one in the family so... I just wonder how much this one's going to cost me (beside money) in the end, how long it'll take, and how bad I'll skrew it up at first. Oh well, ya cann't make an omlette... Besides, what's the worst that can happen... My credit rating gets even worse than it already is? Price I'm willing to pay if I can just get things going. Credit rating will improve once I've finished that first house/deal since I have very few debts.
Forgive my ranting, was on the computer doing property searches checked my previous post here and felt like venting. Anyway, thanks again and wish me luck.

Mike. :smile:

[Dan Auito]

Where are you located Mike?

[Macguyver]

Or just southeast of Longmont.

[RosewoodTx]

Nice to meet you!

Yep, I'm on the fence here in Texas. This dang barbed wire is startin to give me a rash. :SM062: Just the motivation I need.:SM139:

I started reading Dan's book last night (finally got it unzipped) and a lot of stuff started coming together in my head. I made tons of notes to disqualify and qualify the concerns that I have about my abilities and resources, and then made notes of my plans of action and resolutions for all of my concerns.

I also went to my computer and made business cards to motivate myself and to start handing out when I can get the rest of my head gear together. Funds and financing are an issue at this time for me as well, due to my divorce that will finalize in June. When that's done, I plan to refinance my property to pay debts and get some operating capital. In the mean time, I will work on getting all the info and contacts lined up that I will need.

Of course, I'm also thinking that I should just jump off this dang fence and call, call, call, until I find that property that will give me an opportunity without funds and credit. I know they're out there. We just have to make the calls. My credit score is not all that great either. About the same range as yours. I don't have a huge amount of debt, but still my D/I ratio is not favorable at this time for bank loans.

Well, I just thought I'd share my own fence story. Just keep thinking about the !BARBED WIRE!. Besides, being on the fence means your trying to go over it. Also, remember when it comes to barbed wire fencing, the quicker and more careful, the better. And yep, your going to get caught on it a little, but just put a little neosporin on it and it'll be better in no time.

Dan, thanks for the links, the book and especially this site.:SM049:

[Dan Auito]

The honor is all mine. :SM065:

[Macguyver]

Barbed wire and bits left behind :SM126: :SM126: I'm off!! :praise: I can"t go on, the mere thought is just too painfull!

Hi yerself, and thanks telling your story, it's nice to meet you. :grin:

[REIaddicted]

OK,
I have noticed many people stating they are lurkers or fence sitters...

For the lurkers, You posted so the title has been SNATCHED away from you. :icon_aets

Fence sitters, whatcha waiting for ? Rome wasn't built in a day and neither will your investing career... get a move on their lil doggies :SM122:

Remember to share your experiences so we can all answers your questions, encourage you, cheer with you and be elated for you.

Those in between deals will live vicariously through your experience and those newbies will be encouraged by your success.

This is a new day.. :SM041: .... :SM052: and move off the fence!

Lisa