One of the requirements for making a real estate investment is having a high credit score. Though this is the case, you can still start investing in real estate in Beirut for letting business and make money from it without a good credit score. You, however, need to ensure that the investment has the potential to generate high returns within a limited duration.
The first tactic you can use to invest in property with an average credit score is considering a rehab property. It is possible for you to get a loan that covers the cost of purchasing a distressed property. Rehab property needs renovation before leasing it out for business.
The price of such property is lower compared to others in the market making it affordable. It is upon you to make the necessary repairs on such property to attract potential business owners. It may need more labour compared to other properties but purchasing it may cost you less than other types of properties. Investing in rehab property can encourage you to improve your credit score.
A co-signer is another option when you are purchasing for the first time without a good credit score. A co-signer can be a friend with a high credit rating. They are the guarantor when you apply for the loan as they put their credit up for you. Choose this option when you are sure that the investment will give you returns for you to repay the loan. You must make monthly payments to avoid lowering your credit score and that of your co-signer.
You can also find a partner who is interested in investing in real estate. This option may call for splitting profits that you make from investing in the property. It is worth considering when investing in property to let to business owners since there is a high chance of getting returns quickly.
Alternatively, you can apply for a second mortgage. If you already own a home, you can use this option due to the presence of collateral. It can, however, be a risky tactic since you should have sufficient income to pay for the mortgages. Take time to make proper preparations before applying for a second mortgage to avoid losing both properties.
A significant down payment can also help you secure a loan even when your credit score is not as high as expected. A large down payment tells a lender that you are financially stable due to the ability to save a good amount over time. They can consider you for the loan since you show the potential to repay it even if your credit score may be low.
It may take time and the interest rates may be high, but it can help you invest in real estate without depending on someone else’s credit. You can also work with other investors to invest in certain properties collectively. A REIT is a good place to start your investment as you work on improving your credit score.