how to finance a flip? - Posted by DJ MacGown

Posted by nancy on June 06, 1999 at 01:19:29:

Thanks for the reply, DJ- maybe you could pose the question to the legal.wiz.com discussion group? I’ll post here if I discover any firther info. NC

how to finance a flip? - Posted by DJ MacGown

Posted by DJ MacGown on June 03, 1999 at 12:59:37:

I am a new investor with poor credit. I feel like I have to mention that because everything seems to revolve around credit records. My investment strategy is to flip handyman properties. I don’t want the agent I’m working with know I’m flipping,because they won’t want to work with me for long. how do i secure financing in this case? Do I tie up a purchase agreement and assign the contract before the mortgage company discovers my credit history? Or should I find a partner who is willing to put up the dough for a split in the profits. I have understood that if you find a good deal,find an investor to sell to,that you don’t have to worry about money… They will bring the money to the table. But I still have to worry about getting pre-qualified! What do I do!?

p.s. I read a book by Bob Hammond. In it he suggests creating a new file by bypassing the identification system used by major credit bureaus. This is known as file segregation. He states that this is the only completely LEGAL method of erasing bad credit over night.
Has anybody tried this? Is this really legal?

Re: how to finance a flip? - Posted by nancy

Posted by nancy on June 04, 1999 at 13:22:49:

I’d love to hear more details on the Bob Hammond method of erasing bad cedit overnight? Would you mind providing a short synopsis/and or book title-?
I don,t know how you could be listed with the credit reporting groups without your SSN-- Thanks much
nancy

Re: how to finance a flip? - Posted by Redline

Posted by Redline on June 03, 1999 at 13:16:29:

  1. If you’re flipping to someone else who will close the deal then your credit should not be a problem. If sellers/realtors INSIST on a prequal letter, call an investor you plan to work with and see what they can give you. Perhaps they’ll ‘lend’ their credit for a god deal. Consider the fact that if the seller is consumed with your credit and a prequal - he/she probably isn’t motivated enough in the first place! Also, talk to a good mortgage person - you might be surprised what they can do for you. Explain what you’re trying to do.

  2. I’m not aware of ANY ‘legal’ way of erasing bad credit overnight. The only way is to pay your bills on time. Be ware of ANYONE who tells you otherwise.

RL

FILE SEGREGATION!: illegal or amazing secret? - Posted by DJ MacGown

Posted by DJ MacGown on June 05, 1999 at 15:56:17:

Hi Nancy,
The book I’m reffering to is titled:"How to get all the credit you want-and erase your bad credit record."
As you know, many “credit repair” companies are scams. They tell their clients to aquire a new employers inentification number(EIN). This is what businesses use for tax purposes. This is ILLEGAL!
People go to prison for this. One of the steps suggested by Bob is to apply for a new social security number(SSN). Any employee may have his account number changed at any time by applying to the Social Security Board and showing good reason for change. ie… stolen wallet resulting in unathorized credit purchases.
Not once does he mention EIN’s. If there are any lawyers reading this,please answer this question…

Are Employer Inentification Numbers the same as Social Security Numbers? If not ,what is the difference? This would answer the question of legitimacy for file segregation. Thank You,
DJ