Posted by Bud Branstetter on February 03, 2001 at 23:34:24:
This sounds like one for Ed Garcia over on the financing board. Why couldn’t you put these in an LLC with it’s own tax ID and not show up on your personal FICO. You have to sign personally anyway.
Finance Flipin or Pie in the Sky? - Posted by kcc
Posted by kcc on February 03, 2001 at 21:06:35:
Hello,
I have been a sole real estate investor now for 3 years - I left my 17 year Software Engineering career after doing both for 6 years. But now because of the unfairness of the FICO scoring system coupled with the fact that I have a lot of real estate (i.e., much debt) my credit score is 620 or maybe alittle below - the system doesn’t bother to take into accout the persons income! Thus, it is a serious hinderance to me in this industry of Real Estate investing. I am liquadating all of my rental property and am buying smaller buildings (1-4 units) for flipping and need to pursue financing for these rehab projects. Also, because I am not gainfully employed on a 9-5 job now the banks need to see proof of income from my tax forms etc. But how can they determine the real picture since every real estate investor I know always shows less than they really make every year? Do you have any suggestions on what the best approach is for this scenario? I am in Illinois and currently have several projects (single family homes) that need funding quickly - particularly acquisition and rehab costs. This ridiculous scoring system is so bad that everytime you simply want to check your own score it causes your score to drop, go figure!?
Keith