How to buy in a bad credit market

How to Buy in a Bad Credit Market

Real estate investing is a great way to generate wealth because it works in any economic market. Whether times are good and the money is rolling in all around the country, or times are bad and people are feeling “the squeeze,” if you understand how to adapt your real estate investing strategies to accommodate the market, then you can literally accomplish anything.
Once characteristic of a troubled real estate market can be the issue of credit. For example, in the current market even people with reasonably good credit may be required to put down as much as 20 to 30 percent of the value of the house as a down payment. In a real estate investor’s case, it will usually be closer to 30 because real estate investors often own more than one property and may have multiple mortgages at any given time.
Unless you are working with major amounts of cash, then coming up with this type of down payment can be tricky. Add in how important fast action is to the motivated sellers you are probably working with, and waiting for the results on a loan can be not just frustrating, but actually a deal-breaker.
So how can you succeed as a real estate investor and buy in a bad credit market? The answer is simpler than you might think. You just need to know your options – and know how to explain them in a persuasive manner to your potential sellers. By now, you are probably pretty familiar with the terms “subject-to,” “lease option” and “owner financing.” However, the key to buying in a bad credit market using these options is not just knowing how to implement them, but knowing how to explain them to sellers so that they understand that their interests can be protected in this type of arrangement too.
Peter Vekselman has been successfully investing in real estate since 1996.  He has completed over 1200 real estate deals, owned a construction company, been a private lender, and owned a property management company.  Peter currently works with clients all over the US helping them achieve riches in real estate.
Peter Vekselman has been successfully investing in real estate since 1996. He has completed over 1200 real estate deals, owned a construction company, been a private lender, and owned a property management company. Peter currently works with clients all over the US helping them achieve riches in real estate investing. For more information please visit. www.CoachingByPeter.com.