In general, you may assume that a person who does not have access to mortgage credit in a bank cannot invest in property. With this limiting belief, many people who could invest in property don’t even try. They think it is something for the richest and most empowered, so they continue to perpetuate their precarious situation, and they never get out of the ‘rat race’. Luckily, thanks to the Internet, you can all access information and more and more options and alternatives are emerging for all kinds of people and situations. Is it possible to invest in properties if in principle they do not grant you credit? The answer is yes, as long as you know the options you have.
Without Credit
How do you purchase an investment property without access to credit? If you have the desire to buy a property, but you cannot access bank credit, you still have some options. First of all, make sure that the bank does not really give you credit because not all banks have the same policy. Maybe, you can try other financial products offered by the bank or ask other entities. Now, if you are clearly not qualifying for bank loans, you still have other alternatives:
A Joint Loan
Apply for a joint loan with another person, for example, your partner. If you supplement the income of both, you could opt for greater bank credit, taking advantage of the debt capacity of both combined. Try to get direct credit from the selling part of the property. It is not easy and requires negotiating power, but sometimes you can access these types of options. You could also participate in real estate crowdfunding where the investor acquires a stake in the property generally through the acquisition of shares in a company.
Conclusion
In short, open your mind to the opportunities and remember that buying a property without being able to access credit is possible, just as you can also enter the real estate market without money. Get out of your comfort zone, and don’t settle for the limitations you have in your current mindset. Surely if you start to question yourself and investigate, you will discover that the opportunities are many more than you thought.
