how to invest when filing chapter 7

Advantage · #1 01-25-2008, 01:44 PM

I recently had a business fold on me due to the changing economy and wanted to know if I could get into investing with poor credit.

I have not been discharged from bankruptcy yet and wanted to know of strategies to invest while I am in the process of filing chapter 7.

flipitbig · #2 01-25-2008, 01:51 PM

Advantage,

While I understand your pain and want to help I want to first say this is risky and I have not tried it.

You can always take ownership on property SUBJECT TO the existing mortgage which does not require credit to be pulled etc as you are utilizing the loan already in place for the property. You are assuming the payments and liability for this property and I would only do this with a LAND TRUST as your name will not be anywhere on the recorded DEED.

You can view more information on what a LAND TRUST is here.

JaredfromIndiana · #3 01-25-2008, 02:15 PM

Or you could use a hard money lender. I know some of the take credit in to account but some just look at the deal and if it's good enough they'll do it regardless of your credit.

Stevebuyshouses · #4 01-25-2008, 02:30 PM

I agree with both of the prior comments.

Use the subject to strategy to acquire property for the long haul. Note this also works for people that are over leveraged and cannot any longer obtain financing due to debt to income issues.

Hard money lenders or private lenders are the next and the best for buy and sell strategies. You may also want to form a partnership or two with people that will be on the hook for a loan while you do the work and execute the sale.

Next I would say try being a bird dog or employee of an investor in the area. Pic one of the big guys that are good and earn your keep. By doing this deals will start to fly your way, you will also learn while you earn and not have as much to risk.

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