Life Anyone have any experience or ideas to fix my own credit? - Page 3

**Saul Good** · 12-10-2010, 09:13 AM

Quote:

Originally Posted by Hog Farmer

Here's a little trick I'll share.

I bought 8 rental properties at different times over about 7 years that the previous owner financed 20% with a balloon payment at the end of 5 years.

When the balloon payment came due and I did not have the cash to pay it ,I would write a check on a 0% CC offer that I received. I get them almost weekly in the mail. That gave me another year or 18 months to pay it off without any interest.

My goal was always to let the tenants rent pay for the property without any cash outlay from my pocket.

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.

Earthling · 12-10-2010, 09:18 AM

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.

Hog's Gone Fishin · 12-10-2010, 09:25 AM

Quote:

Originally Posted by Saul Good

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.

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.

trndobrd · 12-10-2010, 09:29 AM

Quote:

Originally Posted by Hog Farmer

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?

**Saul Good** · 12-10-2010, 09:29 AM

Quote:

Originally Posted by Earthling

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

Earthling · 12-10-2010, 09:31 AM

Quote:

Originally Posted by Saul Good

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

ROYC75 · 12-10-2010, 09:33 AM

Quote:

Originally Posted by ChiefsNow

I would like to repair my credit , but don't want to get scammed . Any clues?

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

or

Use the Dave Ramsey rule !

**Saul Good** · 12-10-2010, 09:42 AM

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.

chiefsnorth · 12-10-2010, 09:52 AM

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.

Bill Lundberg · 12-10-2010, 10:02 AM

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).

mesmith31 · 12-10-2010, 10:21 AM

Quote:

Originally Posted by Bugeater

I could be wrong, but I highly doubt the thread starter is looking to buy a 30 unit apt building.

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.

Hootie · 12-10-2010, 10:27 AM

Quote:

Originally Posted by kcchiefsfanGoJC

Taking your mom out to dinner is out of the question, I don't care how much it costs.

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

**The Franchise** · 12-10-2010, 10:52 AM

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

**2112** · 12-10-2010, 12:23 PM

do you mean consolidating your debt?

**TimeForWasp** · 12-10-2010, 12:25 PM

Quote:

Originally Posted by Saul Good

"Repair your credit" is pretty vague. What are you trying to accomplish that requires better credit?

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.

12-10-2010, 03:39 AM
TimeForWasp Sprinkle in some Mahomes Join Date: Dec 2005 Location: Butte Montana Casino cash: $7658507	. . Last edited by TimeForWasp; 08-30-2011 at 09:54 AM.. Reason: .
Posts: 8,271

12-10-2010, 09:18 AM	#32
Earthling MVP Join Date: Apr 2001 Casino cash: $10008447	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. __________________ AND SOMETIMES IT'S NOT SO EASY ESPECIALLY WHEN YOUR ONLY FRIEND TALKS SEES LOOKS AND FEELS LIKE YOU AND YOU DO JUST THE SAME AS HIM -Jiimi Hendrix
Posts: 5,995

12-10-2010, 09:42 AM	#38
Saul Good Quit your bullshit Join Date: Jul 2005 Location: Bored of winning Casino cash: $10052799	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. __________________ Today is not a good day to be a pussy.
Posts: 41,870

12-10-2010, 09:52 AM	#39
chiefsnorth Veteran Join Date: Apr 2010 Casino cash: $10004900	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.
Posts: 1,808

12-10-2010, 10:02 AM	#40
Bill Lundberg American Join Date: Jun 2003 Location: Overland Park Casino cash: $10004925	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). __________________ Many men go fishing all of their lives without knowing it is not fish they are after. ~Henry David Thoreau
Posts: 3,919

12-10-2010, 10:52 AM	#43
The Franchise Most Valuable Villain Join Date: Dec 2006 Casino cash: $2065047	I'll be starting to get out of debt in January of 2011......hopefully it goes well.
Posts: 92,316