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Is it actually possible to buy property/real estate and rent it out with no credit history?

I am very interested in purchasing property and renting it out but have no credit history. Would that be a problem? Also is there a way you can get money back after it closes escrow. And do those TV programs about buying and selling real estate tell you information thats hard to find out for yourself?

Public Comments

1. Yes, you will probably need to find someone that owns the home free and clear, then ask them to finance the loan. You will still need closing cost which comes in at a couple grand. Also need cash reserves. People don't always pay and there are aways repairs and taxes. Don't want to discourage you. I think it's great that you are investing vs all the young people I see blowing their money on trinkets (rims, cars, clothes, ...) As for the infomercials. Let me put it this way. If the money was so easy why are they selling their system instead of practicing it?
2. you can buy property if you watch for owner finance with little money down. Some programs do, but you can find out almost any information about tax sale property at your local court house.
3. There are three parts to determining whether or not you can qualify for a loan. They are Credit, Income, and Cash. Generally you need 2 out of 3, but it's possible that you could get away with just one.. First where are you getting the money to purchase the house? If you are paying cash or borrowing money from a family member who doesn't care whether or not you have a credit history, then you won't have any problems whatsoever. Also do you have any income? Even if you have little or no credit you can still get a loan (albeit at a very high rate) if you have a decent income. This is called a hard money loan and usually the intereste rates are like 15 %. If you have income, but little or no credit you still should be able to get this type of loan. Once you have purchased the property (with cash or a personal loan from family or hard money loan, etc.) you can rent it out without any credit history because the credit history needed is for your tenant only. If you are the landlord you do not need a credit history. As far as the buying and selling programs you see on tv, they are just in the business of selling you some DVD or other product. My opinion on them is they won't be the factor in your success probabilities. What I mean by that is two things. First they won't help you succeed if you don't have the ability to succeed in the first place and second if you do have the ability to succeed in this field you would have succeeded without any of these programs.
4. you can pay all cash for the place or get in with other investors to put up all the cash, but i'm assuming you are really asking to get a loan to buy real estate. I'd really don't think it's possible in todays down market. also i don't think the numbers add up in most neighborhoods... ie. the payment on the loan with all deductions would greatly exceed the rent you can get for the place
5. only if you have money to put down. you can also use alternate credit to establish trade lines i.e. utility companies, cell phone, cable, ...
6. Hard money lenders (investors) are the answer. We deal exclusively with a company in Michigan that can likely help you. Contact us via email here or through our website at : www.totaldebtsolutionsllc.com