In all the years that I have been a Real Estate Investor & Real Estate Agent, I have been asked this question way too many times. Can I invest in Real Estate with no money and bad credit? The
3 Foundation Walls to Build your Real Estate Empire
- Good Credit Score,
- Handsome Income,
- Decent Down-payment
CID, or Credit, Income, and Down-payment are like the three foundation walls of a property; the stronger these three are, the more you can build upon them to set up your property empire. It is best to have all three equally strong so you have more of a chance to be successful in regards to owing or renting out a home or property.
If you are looking to create extra income by eventually owning more properties, you need to be in good standing financially which is why CID is so important to keep track of. Owning properties requires having good credit, a steady & decent income, and some form of down payment. If any of these three is lacking, then it can make it difficult for you to reach your goals.
This does not mean that you are incapable of succeeding in this goal if your credit, income or down payment are not all where they should be. The goal is to get started so that you can reach your true potential in homeownership. If your income is not as high as it should be, look towards earning some extra income. If your credit is lower than expected, see why that is, and get yourself out of any debts* you may have as that will put a stall on the lifestyle you want. *(There are various ways how you can do that, which we will discuss it in the following blogs)
Once you have succeeded in purchasing a home, you have to work towards maintaining your CID, so you can continue to invest in properties and increase your income. This is where you have to repeat the process that you started, to eventually be a successful multi-property owner. If you continue to have your CID in good standing, and money starts coming in from your first property, like rental income, you can repeat this process until you have numerous properties and are generating positive cash flow.
The great thing about repeating this process and investing in another property is that the down payment (or a major chunk of it) comes from the existing property that you initially purchased. This saves you money in the long run and keeps a steady flow of income going into your pocket. If you have the previous property rented, then the rental income from that property could add on to your existing income, so really all you have to do is maintain good credit.
Having a rental income property even helps you maintain good credit because now you have additional income from this property, so there is no reason to be behind on your bills or miss a payment! Just enjoy the additional income to improve your lifestyle or save towards downpayment of your next investment property, it all depends on what your long term vision is.
I am Raj Sharda, Real Estate Broker, Author & Coach, specializing in first time home buying & income-generating, self-sustaining investment properties. With 15+ years of personal & professional Real E....
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Good Credit Score,Handsome Income,Decent Down-payment CID, or Credit, Income, and Down-payment are like the three foundation