Please Help!!!!!

5 Replies

Hey Guys, Please refer to my "A Tad Bit Confused" post to find out more about my situation

From: NYC

Interested In: Single and Multifamily Houses...flipping, buy and hold, and now wholesaling (please read below)

I recently went to annualcreditreport.com as well as credit karma.com to find out more information about my credit history and my score. I'm currently at a 420 which is discouraging...It'll probably take me years just to even qualify for a mortgage let alone rent out a house.

Right now I'm waiting on a paycheck from my new job to come in so I can apply for a secured credit card to (I'm not sure how long and difficult this process is) restore my credit. Credit Karma recommended a couple of cards to choose from but I think I should go to a bank and see someone in person to help me with my situation. Also I'm looking for a place to give something of a professional input on how to raise my score. Maybe a company that's helps people with bad credit. I'm going to look through Credit Boards and see if I can receive more assistance.

I'm currently thinking about wholesaling to get myself active in the real estate career but what do I do? What do I even say. The beginning stage is so foreign to me that I don't even know where to begin. If I wake up tomorrow and say "today I'm going to wholesale" What exactly do I do? I know the basics....connect a buyer with a seller and receive money from connecting the two but what do I say to buyers? Do I just call and say "Hello buyer!! Are you looking to buy some houses" -__- I don't know any sellers so I wouldn't know what to say. And vice versa....what do I say in the beginning interaction with the seller? "Hey I can help you sell your house?"-___- I don't even know if someone will buy it......because I don't know what to say to either. It's a never ending cycle. I'm not too worried about paying for marketing. You get what you put in. It's just what do I even say to these people after meeting or talking to them out of the blue? And where do I find these people? Is there somewhere I can go to give me a script to use guide me while talking to a potential client?

I've read the Bigger Pockets Ultimate Guide but I'm going to go through it again to help me better understand how everything works.

Thanks for your support guys

@Ryan Charles what you need to do to start is listen to all the bigger pockets podcasts. You can learn a lot from those episodes, everything from flipping to wholesale to marketing etc. If you are looking to wholesale you need to know how to find and analyze a deal. Typically investors use the formula ARV (after repaired value) x .70 less repairs less your wholesale fee. You don't need to worry about finding buyers or building a buyers list. If you have a deal, the money will find you. You just simply put an ad on Craigslist or take it to your local REIA. You need to set up a lead generation system (yellow letters, door knocking, driving for dollars) and stick with it. Send letters to the same list for 6 months (so 6 letters to each person). You really should read J Scott's books on flipping houses and estimating rehab costs. The biggest mistake whplesalers make is underestimating rehab costs. As far as what to say to seller, write down a script of questions (why do you want to sell, what do you want for it) and follow that script.

good credit means having : credit cards , installment loan(s) and real estate mortgage loan
- do not bet on just one type of credit account
- find out the reason your score is that low.. maybe collections, late payments..
- there are banks that offer secured credit lines, they are better than credit cards and you can start with only couple of hundred $
- get to know and improve your Debt-income ratio
- and obviously get better at what you do and get more practical skills

I know this works I tested it time and again.

Good luck !
God bless our troops !!

Ryan, you need to get your credit report printed out from all three bureaus, Experian, Equifax, and Transunion. Go through each of them line by line and find all the derogatory items (passed due, charge offs, late payments) and contact those creditors and pay them off or at least work out a payment plan. This needs to be your priority before you worry about wholesaling in my opinion. Once you get your own house in order, then start learning about how to acquire other houses.

I agree with James Perez from the above post. Find out why your credit score(s) are so low and start fixing that before you start whole saling. Finish one project before jumping into a new one.

DO NOT work out a payment plan on old debt. If you acknowledge the debt or make a partial payment you re-age the debt again.

420 Is very, very low.

Once  a year you get a free report www.annualcreditreport.com

You can dispute from there accounts although they do not give you the credit score it doesn't matter. You are looking to get rid of negatives on your report.

There are ways to get things off of your account with a "payment for deletion". There could be multiple entries from the same collection account on your report. If you have a judgment sometimes it is entered twice by mistake. Even if an account is yours but you dispute it and they cannot validate it then it comes off. Sometimes it comes back on later but not always. One trap credit agency companies have is they allow you to be descriptive on a problem and then use it against you later as you having validated the debt. Be very vague and just check an option and that's it to dispute.

There are many other strategies that work to get things off.

No legal advice given.  

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