Does Horrible Credit=No Life?
hello everyone....
very new to real estate though i have read alot and believe now that there is only one way to re structure this life financially. it is with l/o.
i have very ruined credit and one bankruptcy. i know i must fix this but its very hard with little income. my father fixed his life, just like mine, with real estate. things are different now than in his days.
i know good to excellent credit makes life easier. i can work hard though.
i would appreciate complete honesty when i ask all or any of you this question.
with the picture i just gave you, do any of you for a fact! know that ones financial life can be re done with l/o. short sales require too much $$ up front and i worked hard for the 7K i have to start in l/o. hard work is no fear to me, but unrealistic and impossible is fearsome.
all input is very welcomed and needed.
JMillson
am I realistic?
JMillson
Nice to meet you and welcome. Don't give up the fight. You just have to start thinking more outside the box.
May I suggest spending some time reading in the Sub To Forum. I have John Locke's course. On the very first page it says
No Big Money Outlays!
No Credit Checks!
No Job!
No New Loan!
No Kidding!
You absolutely will not find a better support system. I am working on my first sub to deal right now. You can do anything you want if you want it bad enough. You have already mentioned you're willing to work hard. That's the first step.
Good Luck
Larry
1. Find Seller who needs help with making their mortgage payments (bought a second home thinking their first home would sell quickly).
2. Give them a L/O for three or more years (12 months with a right to renew at your discretion) with a rent payment equal to their mortgage payments. Make sure it is something you can afford.
3. You'll probably get it at 90 to 95 percent of today's FMV, since it has been on the market for months.
4. Move in.
5. Pay the Seller with checks.
6. After a year of appreciation (or maybe two years), go to a mortgage broker with microfiche copies of 12 canceled checks. Keep looking until you find an acceptable plan and terms. It will be treated as a refi. You will have a house worth around 110 + percent of what you paid and will borrow 90 percent of the FMV. You will borrow all the closing costs and broker fees (rolled over in the loan). RESULT: You now own a home in your own name with absolute zero down and are well on your way to attaining a new life. Many of these lenders will give you a competitive interest rate if you are 24 months into a Chapter 7 with reestablished credit (B + credit rating for the purposes of determining the interest rate in this program). How do you reestablish credit? Get a couple of unsecured "bad credit" credit cards--like Household Bank.
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Larry and LeaseOptionKing;
thank you very much.
i have heard l/o and subject2 can be a good combination. also john locke's course came very recommended to my attention. it is 700 dollars that i am willing to spend for the knowledge.
i wonder if i get a business license now, can i write off the course as an expense?
lok,
nice l/o anatomy.
this plan can help solve 2 birds with one stone....ownership and credit.
if i found someone willing to quit claim their prop over to me, is it likely that they will expect a large down pmt? i have immediate ownership but no credit opportunity, which is bad.
ty,
jm
The IRS doesn't care if you have a business license or not. Once you decide to pursue self-employment, you are able to deduct expenses. In some cases, a Course would be deductible (to better your education in your current field). In most areas you do not need a license to invest in real estate. Never get a Quitclaim. Always go for a Warranty Deed (Grant Deed in California). You'll be dealing with people whose motivation precludes their need for much cash.
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