I hope that works out for you. Someone I used to work closely with lost a 7 figure net worth at age 35 doing almost the exact same thing on section 8 properties. What is worse is that he mentored a friend of mine. That friend left a high paying job to go into real estate the same way. He went broke, too.

It can work, but they were putting a lot of eggs in the baskets of renters. Almost by definition, renters are not the most reliable people from a cash flow standpoint.

You ask about a small loan at your bank and tell them you will put the payment money in an escrow account that they can draw from. You put exactly the amount in that needs to be repaid. The repayment money is already in their hands and they will give you a "loan" against that money. (You can have them take all the escrow money to pay the loan in full) Its all free interest money for them. Your credit will reflect that you got a loan and repaid it. Do this as many times as necessary to establish better credit.

It has worked out really well, I've got 21 properties total and about half are now paid for. The area I live in has high rental demand . I am always able to have a property rented within 2 days of being available.

So real estate is your primary source of income and the 'hog jerking' thing is just a passion?

It is frightening to see how bad some people's financial advice is.

LMAO

Follow the Fed's rule, print more money and get China to buy the debt.

or

Use the Dave Ramsey rule !

First and foremost, you do not need to borrow money to improve your credit.

Pay your bills on time for a year and pay off any outstanding debt. If you can do that, your credit will be good enough to qualify you for whatever you need.

***Disclaimer: If you are trying to purchase a resort hotel or put a land contract on a major shopping center in Manhattan, you may need to do a little more. If this is the case, CP may not be the best counsel.

Do NOT use one of those services that say they can fix your credit. most of them rely on disputing everything on your report which you can do for yourself, free. But by and large they are scams. This system is engineered to be watertight. They way to have good credit is to manage your finances prudently and spend less than you earn. If you have racked up years of debt it might take years to pay off. There isnt any quick fix unless you can boost your income. You your choices might be to remain in debt he'll or spend time in debt purgatory... One is a lot better than the other because there is light at the end of the tunnel.

Most people with bad credit have bad credit because they don't pay their damn bills and they have collections, chargeoffs, bankruptcy, foreclosure littering their credit report.

If that is you and they are real bills that you owe - you can't just pay someone to "fix" your credit, any company that tells you they can is likely lying. The only way to fix it is to start paying derogatory things off, have good open and active accounts that are paid on time and a long period of time for those things to drop off (5-7 years).

I already gave him a strategy for repairing his credit, but the argument that everything should be purchased for cash always is fine, but highly limiting. Being debt free is a great goal and more of America should strive for it. If you want grow wealth you either have to save until you can buy assets or prudently use leverage to acquire them and then pay them off if it makes sense.

Even if you can pay something off entirely it doesn't always make financial sense to do so. If you have $150,000 in the bank that you could use to pay off your mortgage and your interest rate is 4.5% and you could invest that money elsewhere it may make sense to hold on to your cash.

"Don't pay it down until you can pay it off". If you give the money to your mortgage company as opposed to setting it aside, they won't give it back to you if you get in a pinch. And if better opportunity comes along, you also aren't liquid.

he doesn't care...you're a virgin

I'll be starting to get out of debt in January of 2011......hopefully it goes well.

do you mean consolidating your debt?

I pay cash for everything right now. I've got 1 neg thing showing on my credit right now and my score is now 640. I am not looking to go in more debt, but just want to fix mine in case I do in the future. I don't have any debt. No car payment, no house payment anything. I just did not used to give a shit before. Now I do. I do not know what the neg thing is. How do you get your credit run from all three agencies free? everytime I do a search , it looks like a scam. I may want to invest in something ,rental property or something in the near future that the renter pays the bill,but I want to get my credit better before I even try.