I think you have some options even though your credit score might not be the best. First, I would keep working on getting your credit score back into acceptable levels so you can finance in the future. Having the capability to acquire lines of credit or just conventional/commercial financing is critical to any investor. Right now or at any time I would not advise paying high interest rates to acquire cash. I would rather obtain some sort of creative financing like a land contract. Sellers that have investment property usually prefer land contracts because they can defer high capital gains costs. Buyers like it because it will offer them the same opportunity that a bank can offer but with more flexibility. Usually the buyer and seller along with their agent will structure the agreement to include down payment, term and interest rate. The closing process is the same as any other loan. The great thing about these loans is that you can close in a matter of weeks and there are no limitations on how many properties you can close. Your down payment funds could probably be structured from your current properties that are already paid for. You would probably have to pay for an appraisal on your current properties and re-finance to draw a percentage of money to use for down payment on future properties. This is a really good way to acquire more properties and not use direct funds in order to buy. If your credit scores are an issue for a re-finance you might be able to include another investor. When your credit score is at an acceptable level you can re-finance your land contract into a commercial loan or sell your property and make a profit before the land contract expires. You really have many options to acquire property or to make a profit on the sale. Think outside the box and think about ways to obtain financing in a creative way. Stay away from high interest rates to obtain cash.... more
Keep in mind that home values in Wisconsin are greatly different than California. Have you had the opportunity to review homes in the Wisconsin market? We could start by reviewing some listings to see what your dollar will get you in Wisconsin compared to California.
Next, we would want to talk to a lender, as mortgage programs are changing on a daily basis, it would be best for us to get in touch with some good mortgage lenders to look at your financial picture to see what programs they have available for your scenario.
We then would work together to determine what you are looking for in a home and begin the home search process.... more