Bad Credit And Dreams Of Getting Debt Free And Into Real Estate
Hello All.
Anyone tell me the best way to getting out of bad credit quickly and rebuilding so that I can get into real estate? no bankruptcy. just many many things in collections; creditcards, lots of little stupid stuff I have let go. I would like to be able to get approved for things and I get denied on everything? But in the meantime, I would also like to start dabbling in real estate as it really interests me. I am 25 with a lot of ambition but had a bad run with finances in the past. I would really like to start bird dogging. Anyone got any ideas for me. I have no real-estate training or experience at all.
You have a good idea. Bird dogging will bring in a cash flow.
Look, study and do from the web site http://www.creditboards.com. You can fix your own credit this way. I have and am now helping friends do the same.
Good luck in real estate. It is great.
credit has nothing to do with making money in real estate, unless you place it into play... I mailed 155 post cards to fsbo's, about 20 got returned, made 15 bids, and bought 3 houses on lease options for $10 each, credit never applied , this was in the last 3 weeks, have many other deals from it.
In the meantime start buying back your credit and paying off debts...
need help... holla!
Dave
Dave:
You sent out post cards to fsbo's and did lease options and these people never asked to check your credit at all? Being a newbie I just assumed that the seller would require that info. How long did you set up the lease for? Can you purchase the propty at any point during that time or just at the end? Not that this is any of my business, but, how do you pay the monthly lease payment?Do you use renters? If so, how did you find the renters? I am so confused.
I keep hearing about lease options but I have unable to find out what they are. Dave could you explain it a little on how you did this. I also would figure that a FSBO would check your credit to see your past history of repaying debt. What about owner will carry. Do they not check your credit either. I am so confused and keep getting conflicting reports. Dave could you please clarify
DaveREI: Could you please provide a sample of what you send the people? thanks
1st it is good to see that you are ready to start making better financial decisions. I hope that you will work hard to make sure all future decisions take in consideration future consequences of EVERY financial decision. One of the hardest things people have to learn is cash flow, living within or under their means and controlling debt. Until someone fully understands these issues one will not understand how to become successful. I hope that you are not looking for REI as an answer to solve your money problems because unless you understand these 3 issues you will be looking for another answer. Now enough said about that. 1st look at your debt, contact all creditors and see about working out an agreement with each of them. 1 way is to get them to lower debt amount, interest or payments and begin paying off the highest interest or lowest amount due (2 different strategies for debt consolidation), so that you can see some progress. This will also be a good indicator to determine if you will be able to stick to a plan. I would recommend starting as a bird dog, earning money and working with others to gain the knowledge of REI. Keep the day job work out the debt problems, read and study as much as you can and you will begin to make better financial decisions. Remember EVERYTHING you do is a decision even when you decide not to do something. You decided to post for help here and that is a GOOD decision. Listen to the opinions here and make good sound decisions after careful review of each suggestion. GOOD LUCK!
basics of a lease option:
1. find a seller who will be willing to work with you( very important step )
2. since you may not have the money to purchase the property at that specific time, you tell the owner " if i give you $XXX as a down payment would you be willing to lease this property to me for $xxx a month (usually a nice higherthan the mortgage payment) this way all you have to do is pay the taxes and mortgage payments."
3. then you add " i will lease this property for xxxx years and at the end of my lease i will have the right to purchase if i choose" Still smiling " also if i choose to buy it i would like 50% of the lease payments to go towards the purchase price."
4. sign papers
[addsig]
Per raymo28, I am sort of at a loss. If I am able to do this, exactly how do I make money on this. By renting out the property? This is more than likely a dumb question, but I don't believe in guesswork. I am not intuitive enough for that.
what if you have no $$$ for the down payment?? and also, do you negotiate the purchase price then?
Thanks!
First things first. For all the new guys and gals on the forum if you have a question post a topic you kinda stole this forum away from dtucker. Just a suggestion but it is professional courtesy.
Dtucker...
Before you do anything do your homework! You really need to have a semi-strong grasp on real estate gargain not to mention how things run. I have beed studying this since I was 19 so 2 years I have been reading and just about 6 months ago I started to get my feet wet. I haven't made a deal yet but I am being cautious as to not make too many mistakes in the early going. Birddogging is a good way to go but if you don't have somekind of handle on what you are doing noone is going to respond to you. It's like applying for a bartending position without knowing how to mix a drink, it just doesn't work like that. As far as your credit goes mine sucks too!! That is why it has taken me so long. I just bought John Locke's course and I am steedily on my way. I talk to Mr. Locke often on the phone and in email and you can too. Work on your credit but it isn't exactly necessary for some forms of investing. I am starting to realize how long this is getting and I don't want to bore you, so PM me if you would like to talk and I will forward you my home telephone. But remember that knowledge is what you seek at the moment. Fix your credit while you study up on what you want to do.
Jim