First, get the help of a cosigner. If you get a cosigner, the mortgage lender will look at your cosigner’s credit history not yours. Hence, with this you will most likely get lower interest rate. When finding a cosigner, make sure you get someone with a very good credit score to increase the chance of your loan of being approved.

Second, purchase a property with high value. Most hard money loan lenders take into consideration the value of the property that you are planning to purchase. Since loaning money involves high risk of default, lenders would want to choose properties that are high in demand, so they could sell that property if they needed to, to get their money back.

Third, be ready to take the loan-to-value ratio for the hard money loan. This simply means that as a borrower, you need to be ready to shell out more cash from your own pockets so as to avail of financing. In most cases, hard money loan lenders offer around 50% of the total amount of money that you need.

Those are just three simple tips on how you can get hard money loan even with a bad credit. To start looking for lenders who can help you with your loan needs, you can ask mortgage companies, real estate agents, and title companies to refer you. You can also use the easier way, by using the Internet and just running a search for hard money lenders.

So how does hard money loan works? Let’s take this scenario as an example. You need funds to repair your investment property, let’s say your house. The present value of your house is $70,000 and the cost to repair it would be $20,000. After repairing it, the value of your house would be, let’s say $100,000. Since hard money lender can only give you up to 70% of After Repaired Value (ARV), in your case, they can give you loan of up to $70,000

Although inertest rates for hard money loan is higher, it’s beneficial for borrowers who need financial help in renovating their properties before they sell it or have it rented out. In most cases, hard money loan lenders consider offering funding for income-producing properties such as motels, office buildings, shopping centers, apartments, restaurants, hotels, and medical institutions.  Aside from these, they too offer loans for bank workouts, bankruptcies, foreclosures, land acquisition, and much more.

If you are looking for lenders that offer hard money, there are hundreds out there just waiting for you. To find them, you can ask mortgage companies and ask them to refer you to a hard money lender. In addition, you can also ask help from real state agents or title companies. There’s also the Internet that you can check by just running a search for hard money lenders.

So many times – and particularly in this economy – people who want to get started in real estate investing come from a place of bad credit. And I mean BAD credit – even foreclosures and bankruptcies on their records.

The question is: “How can I get started in real estate – with bad credit and a very tight budget to boot?”

In other words, the traditional ways of real estate investing are definitely not an option for you. You can’t go out and get a loan to buy investment property. You don’t have either one of the two main requirements: Down payment, and excellent credit.

The answer is – of course there are ways to get started in real estate for you right now – actually quite a few!

Once you start looking, you might have a tough time DECIDING which way to go, because there are so many different options available.

For today’s tip, what I want to recommend is that you download this free report: Investor Cash Cycle Report

It was written by a good friend of mine who went THROUGH the very issues that you are facing right now: Poor credit, no money, even BK… after having amassed Millions of Dollars of wealth in real estate. But he got tripped up when things started to change, and the techniques that he had learned in the seminars stopped working all of a sudden.

However, he figured it all out and came back – and in this report he shares how he did it – and how you can do the same.

Please share this story with your friends – bookmark it, twitter it…, and leave me a comment below! (And of course, make sure you get this FREE report ASAP!)

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