It is a well-known fact that real estate investment is one of the best ways to achieve financial independence and sustainable wealth.

However, one of the biggest challenges would-be investors face is that it usually takes good credit rating and a strong track record to buy properties with the best lending terms.

Having a good credit rating is not only morally right, but it is also essential for raising investment capital. Although, I understand that life happens and things sometimes go south.

Bad credit doesn’t mean you can’t buy property as an investment. Fortunately, there are several ways to get around raising capital regardless of credit barrier and get into property investing. In this short piece are some of the best tactics you can use for buying an investment property with bad or below-average credit.

Five ways to get around bad credit for investment in property

1. Find a co-signer.

If you’re buying an investment property for the first time and can’t get a loan, you might be able to find someone to co-sign.

A co-signer effectively acts as a guarantor of your loan, putting his or her credit up for you. If someone with better credit than yourself, such as a close friend or family member, is willing to co-sign on loan, you can take the opportunity to build your confidence as you repay it.

Of course, you want to be sure that you can repay, even if the property fails to generate a return right away. Failure to meet your monthly payment obligations will not only negatively affect your credit score, but that of your co-signer as well.

2. Form a partnership.

Even if you can’t find someone to co-sign your loan, it doesn’t mean you can’t still use another person’s credit to facilitate investment. Consider finding another person who would be interested in real estate investment and partnering with him or her. Although this approach will require splitting any profits with your partner, it’s an easy way to get your property investing career off the ground.

3. Start with a distressed property.

Borrowers with lower credit scores are usually ineligible for loans that would cover the average price of a single-family home. Despite this, you might still be able to qualify for a loan that would cover the cost of buying a distressed property that can then be renovated and flipped for a profit.

From there, you’ll have to put in the work of repairing the property and making it livable. Though this method certainly requires more labor than investing in properties in better condition, it offers a substantial upside of requiring much less capital up-front. If you find the right property to renovate, you can even turn a very significant profit on the time and effort you put in.

4. Save a sizeable down payment.

Borrowers with poor credit history can still sometimes secure loans by putting up a larger than average down payment. If you can pay 20 percent or more up front, you are likely to qualify for loans that are above what your credit score would generally justify.

Putting a large sum of money down shows lenders both financial stability and an ability to manage money by saving it over time. Though you might still have a higher-than-usual interest rate, a substantial down payment will usually get banks and other lending institutions to consider you for a loan seriously.

5. Invest in a Real Estate Investment Trust (REIT)

Even with these different tactics for buying an investment property with bad credit, there will still be some people who cannot afford to purchase real estate. For these people, though, there are still good options that involve real estate investment.

Rather than buying a property of your own, you can pool your money together with other investors in a real estate investment trust, or REIT.

These trusts combine investment money to collectively invest in real estate, particularly at the commercial level. Though your goal should still be to get into investment properties of your own, a REIT can help you earn money in the real estate market while you build up your credit or work toward using one of the other tactics described above.

Buying an investment property without at least a decent credit score is difficult, but not impossible. Use these tactics, and you should be able to start making money in the property market soon.