No matter how good your credit is or how much of your own capital you have to spend, eventually you’ll hit a brick wall as an investor if you don’t start leveraging other people’s money and credit for your portfolio.

Here are some ways to use other people’s credit to invest in real estate…

1)      Create a joint venture deal with a financing partner, where they assume the mortgage and the expenses of a real estate investment property, while you handle strategy and management.  Very likely both the loan and the title to the property will be in your partner’s name, so a sound contract needs to be spelled out to protect you both.  Although your associate is assuming all the financial risk, they have a chance to profit while you do all the work.

2)      Purchase a property by taking on someone else’s mortgage loan payments.  This is known as a “subject to” purchase, because the purchase is subject to your making the payments.  The other party agrees to keep their name on the loan, so there is no institutional credit check on you.  Motivated sellers who need a quick closing due to impending foreclosure, a divorce, job transfer or other personal situation are more open to this option.  There may be legal issues in your state, so be sure to ask an attorney before you proceed.

3)       “Wholesale” a property.  This involves putting a purchase contract on the property, and then finding a buyer (at a profit) to assign the property to before closing.  There is no credit check or loan application for you, because your buyer’s financing will step into that position at closing.

Have you successfully used any of the strategies discussed in this blog post?

For more information on how you can escape the rat race for good and create lasting, generational wealth with real estate, download my FREE ebook, “How to Find Underpriced Properties: Secrets for Creating Wealth with Real Estate in ANY Economy.”