Posted by Brent_IL on August 16, 2003 at 23:35:44:
If you expect to follow your game plan, I would let the cash where it is. As you say, few will ask for your FICO score when doing lease options or subject-to’s. If you can learn to make good deals with little money, using cash for mega discounts will be a snap later on.
Bad Credit or use 401K Money? - Posted by NJ Investor
Posted by NJ Investor on August 16, 2003 at 23:21:36:
I have some minor credit issues…and also want to begin REI. Should I utilize 401K monies to correct blemishes and establish myself as a good credit risk… (since my goals with properties are to hold for long term income)or should I just attempt to purchase properties via “lease options/subject to” with credit “as is” ? (and of course I plan to correct the blemishes, just not as fast)
Opinions?
Re: Bad Credit or use 401K Money? - Posted by Randy
Posted by Randy on August 17, 2003 at 09:39:31:
There are many ways to correct blemishes on your credit, some require money some don?t. If you haven?t heard of them you might check out Lexington Law http://www.lexingtonlaw.com for a small monthly fee they will assist in improving your credit. 401k funds are best left where they are? if you need to borrow from your 401k for a solid investment then do so but be very careful it?s a winner, that can be a very expensive mistake if it goes south not only the cost of the loan but the loss of future gain and possible tax consequences.