Finance Flipin or Pie in the Sky? - Posted by kcc
Posted by kcc on February 03, 2001 at 21:06:35:
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!?