Posted by John on October 23, 2003 at 16:45:32:
Thanks, that sounds like a great idea but please clear up a few things:
- I open a savings account with $400 cash.
- A take out a loan with that account as collateral
- I open another savings account with the money just borrowed and then take another loan out using that account as collateral
- I go to a third bank, deposit that money into a savings account and take out another loan.
- I pay off the loans weekly using my checking account
Is this correct? Would it help any to do it with a larger amount of cash? Would it help to do it again a few more times? After I do it should I start taking out larger loans? Do you have any advice that would help me build credit faster once I get a credit card, other than using it occasionally and paying it off right away? Does it help to get multiple cards? My goal is only to be able to finance $75K - 100K (80-85%) on a multi-family investment property within a year or two and then take things from there.
I know these are a lot of questions but I am very serious about starting in real estate investment as soon as possible, and this is currently my only major obstacle.