Need some sugesstions - Posted by CJ

Posted by dewCO on November 18, 2000 at 20:43:50:

Why aren’t you studying up on Creative RE? You’ve made your case that you need it (although you have a few facts wrong). You don’t need lenders. With a $40,000 cushion you could do lots of deals and not have sweat. Don’t be so anxious and spend some time learning creative RE by finding MOTIVATED sellers.

P.S. If you insist on going the tradional lender route, you need a GOOD loan officer. Your two credit dings may not be that important. Your job history was fine until you said you are now self employed. However, the loan industry is changing almost daily. Lots of new products and less and less down for investors with GOOD CREDIT SCORES. There are stated income loan programs, etc., they have higher interest rates and require larger down payments, because they are riskier loans to the lenders.

Need some sugesstions - Posted by CJ

Posted by CJ on November 17, 2000 at 03:55:55:

Hello all-

I have my eye on 2 properties in my area. A duplex for ~$125,000 and a 5 unit property for ~$160,000. I plan on putting cash down in the amount of $40,000 in whichever property I decide on but have just discovered a MAJOR problem with my credit report that I have to admit is legit.

I ran my credit report and found that I have a $125 charge off from a bank and a $250 charg-off from a credit card company both from 4 years back. Unfortunately like too many recent college grads at the time I got into much CC debt and was irresponsible with my credit. I know that once i pay these off (THIS WEEK), they still reflect on my credit for 7 years I believe. :frowning: I have been able to save quite a bit of money in the past few years but have never held a position in my industry (Information technology) for more than 1.5 years (another NEGATIVE in lending). To add to that I work most of the past 2 years as a TEMPORARY employee to gain experience in my field (ANOTHER NEGATIVE in lending)…I have now been a consultant for the past 4 months and realive that lenders will take an average of the past two years salaries into account, much like they do for Realtors.

This is my quandry…I am very apprehensive to even approach a lender wth my situation. I grew up (parents were successful Realtors) around real estate and am ready to take the leap, but would like to get some kind of idea what I will be up against with a lender if I ask to see what I qualify for and what I need to do immediately to improve my credit.

What should be my course of action? Should I just bit the bullet and speak to a lender?

Thanks to all in this group, you are most helpfull