If you are looking for real estate with a troubled financial history, you'll want to learn how to buy an apartment complex with no money and bad credit. Although you are not in a good position for getting the best credit and financing offers, you still stand a chance of making your apartment complex owning ambitions come true. Simply understand that you will be paying more in interest rates and that you may be best advised to wait until you can improve your credit. If waiting is not an option, follow these steps for how to buy that apartment complex with any credit history.
- Obtain a copy of your credit report. No matter how bad you suspect your credit report is, you want to know exactly what is on it. Some people are surprised to see that their identity has been used for someone else's credit or identify fraud, which can result in a much lower score than you imagined you had. There are things that you can then take to correct the situation. No matter what the case, you want to go into any meeting with a copy of your credit report and credit score on hand, claiming ownership of the less-than-stellar circumstance.
- Consider your rent-to-own options. Especially in this economy, you may find that owners are willing to work with you, even if you can't get approved for the amount of money needed to buy their property. If they know that you are an interested buyer who is seeking to improve your credit, you may find that you can rent-to-own an apartment complex. You will be required to make a down payment up front, but the amount of that down payment is negotiable and is sometimes deferred. A rent-to-own scenario works for the seller, as he can keep fees paid and the deposit if you ultimately decide that you don't want to buy the property. It works for the buyer, because you can make a substantial investment in the property, then make sure that it's for you before making the full investment. The loan terms for rent-to-own can be from one to approximately three years. Make sure to have a lawyer look over the contract and look out for your best interests before committing to any rent-to-own terms, and remember that you must get everything notarized and in writing for your own protection.
Look for an apartment complex that isn't too expensive. If you have bad credit, you are likely to be approved for only a smaller loan. Nobody is going to trust someone with bad credit with a large loan. If rent-to-own options aren't for you, finding a cheaper complex is key to making your property ownership dreams come true and turning a profit from your investment.
- Try legitimate lenders that are smaller in scale for an apartment complex. Avoid the big name banks, as they have their choice of the best customers with stellar credit histories. Smaller banks and finance companies are more apt to take your special circumstances into consideration. If your credit was damaged from health bills or other financial devastation, be up front and let the potential lender know this. You just may be given a second chance by a great bank.
- Opt for subprime lenders only as a last resort. Yes, you are most likely to get approved from banks or financial companies that specialize in lending to people with bad credit. However, the reason that they specialize in this is often because those individuals are easy victims. With nowhere else to go for credit, people often get in over their heads with subprime lenders, paying huge fees and interest rates, then ultimately losing their cars and properties, making it a win-win for the subprime lender and an overall failure for the customer. If you must, though, you will find a lender who will work with you in this category of lender, who can help you get an apartment complex with no money and bad credit.