Posted by Rick on December 02, 1999 at 24:23:27:
What area do you live in?
Need Help repairing credit - Posted by CJinPA
Posted by CJinPA on December 01, 1999 at 10:01:03:
Boy, the stupid things we do when we’re young…
I’ll be 29 this month and I’ve recently finished (June '99) paying off old CC debt from my early-mid 20’s. I own a home ~$180,000 w/ $100,000 eqity…actually only ~$90,000 equity because I took out a Home Equity loan of $10,000 to help payoff the remaining debt.
I am ahead of schedule on paying off the HE loan (terms 5yrs/9%) I plan on completing the payoff of the loan by the end of 2000.
My goal is to buy 1-2 single family homes or 1 2-unit property by the end of 2000 and would like to know the best way to go about doing this? I have approx $35,000 in the stock market that I am willing to pull out to invest in RE.
Also, would it be wise to possible use $5000 and deposit $2500 in two banks and take 2 $2500 loans out to establish further good credit? I need ideas, any ideas.
Thanks in advance
CJ
You don’t need all that money. - Posted by Tony James
Posted by Tony James on December 01, 1999 at 14:28:56:
I have read in a book, thats a good Idea to establish credit. Deposit $5,000 in one bank, get a loan on it, depostit the $5,000 loan in another bank, and do that to 5 banks…Then pay them all off. Then you will have a $25,000 line of credit.
I just Bought a Duplex with no money down, and got a check for $2,500 at closing, and will make $500.00 after expenses each month off of the property. You will need money for things like Earnest money or appraisals…but you can get all that back at Closing. And it all depends on how you structure your purchase agreement. Keep your $35,000. Or even use it as collateral. There are many houses you can buy at $35,000 here in Minnesota that are worth $70,000. But many people don’t have the credit or money to buy them. You can buy a house fix it up and sell it for $70,000. You know the rest.
But Actually, the name of the game is O.P.M other peoples Money, use other peoples money if you can. But when you have $35,000 to work with, Who needs credit? Applying for credit is a pain in the you know what. I have lost a couple of houses already because of the Company I was working with were no good. and the sellers couldn’t wait any longer. I would have made $20,000 on both houses, had my buyers set up and everything. However, the more I read the post on this page, I see I can do faster closing without Mortgage companys. I could use investors or create notes and sell them.
The short while I have been into real estate I see there is a vast amount of options you have to make allot of money.
Hang in there