The first way that I want to share with you, it’s not very exciting. It’s called credit repair. There are reputable companies out there that the good ones will charge $1,000 and $2,000 and in a matter of months, usually, 2 – 3 or6 months, They are able to go on to the credit bureau and refute some of the things that have created the bad credit and what they’ll do is they’ll bring a legal team to the table and lawyers and these lawyers know how to write letters that these credit bureaus and companies are not prepared to respond to so they have to drop it. Whether it was legitimate or illegitimately their credit isn’t good, frankly, credit repair is something with a reputable company that can take care of that for you. But today you might be sitting here thinking, but Kris I don’t want to write a $1000 or $2000 check and I want something even faster.
Have Someone Else Secure The Loan
So here’s option number 2. Have someone else secure the loan for the property that you want to get. Now, this is different than cosigning. I’m not suggesting that you take bad credit plus good credit equals good loan. No, bad credit plus good credit mix and creates not so good credit. So instead, you need time to work on your credit and make sure you got a plan for that. Eventually, do those credit repair things, but what I want you to do is, think, who do you know in your life that loves you? That cares about you? That trusts you?
That would basically get the loan and then let you use the house. That’s a very fast option. But again, you might be sitting here thinking, but Kris I don’t know anyone that would take on that amount of debt or I don’t know if I have anyone that is in my world that would trust me that way. So we don’t have the $1,000 or $2,000 for credit repair maybe. We might have the person that would go ahead and get the loan, so I’m going to share with you something really cool. This is my favorite. This is the one that I would use.
If I lost everything, if I had bad credit, if I had no money but I wanted to get right back into a home, then I would do it through a lease option. Ok so here’s the deal on a lease option. There are homeowners out there, and there are investors out there and what they want to do is they are looking at putting you in the home, not just as a renter, but do like a rent to own. Or what’s called a lease option. Or what’s also called seller financing and basically, this is an unconventional way of getting into a house. So for example, there’s a house out there, and, you got to be flexible, because it’s not like you get to be picky and choosy, with the exact house that you want. But you can find a house with equity in it, when you make your monthly payments, just like if it were to a bank, you could say “hey, every time I make a payment on time, I want some of the money to credit towards the purchase price of the house and then #2.
When you are doing that, what you are really doing is buying time. Because you are getting a house now, but what you are saying is, I’m buying time to be able to repair my credit, or let something drop-off my credit, and ultimately allow myself to get into a house and have all the full rights of ownership today. I’m a huge fan of seller financing and lease options and you’ve got a link to my book below, and I wants you to read it because it’s all about the least option system, and it’s all about exactly how it works and I’ve got all sorts of tools in there that will help you. But if I had to start all over guess what? If I had bad credit, that is exactly how I would get into a house, am I would negotiate that. I would make sure that I set the price upfront and I would make sure that when I’m being a good steward of the home, and taking care of the home, or fixing it up, that all of that become credits that apply towards the time when I eventually buy it.
Do a 5 or 1-Year Contract
The last piece of advice I’d give you on this, you can do a 5-year contract or a 1-year contract. Give yourself time. Number 1 problem with this strategy, is you get immediately gratified by being in the house, but you don’t take the steps that you need to eventually buy it. So if you put yourself on the title. This is the strongest position, that some people will let you do, and some won’t. If you get added to the title, what it means is that you can refinance the home instead of purchasing the loan and a refinance loan is always way easier to get, then a purchase price loan.
So that would be the cake topper, of, get me on there so that within 2 years, I can refinance it. If you’ve got bad credit do yourself a favor. Make sure you’re going through the process, and keep your eye on the ball, of getting your credit repaired. Because once you buy it from them, you advanced yourself all the benefit of having the house today, and when you bought it, then 2 or 3years later when you refinance it or are able to qualify to purchase it, it’s now yours and you didn’t have to wait for your credit to get good.