My Credit

5 Replies

Should I clean up my credit before I even think about being a real estate investor?

I believe it will depend on two things:

1) Is debt a major life issue? Are you being hounded by creditors? Are you not sure with your next meal is coming from? etc. If so, then maybe get your financial house in order first while you continue to learn about real estate. Don't let a bad financial situation stop you from learning about real estate. 

2) Are you planning on using your credit to buy real estate? If you don't have a good credit score, you are not going to get the best terms on bank mortgages. Depending on your credit score, you may even not be eligible for a loan. Having the ability to use bank mortgages is just one other tool to acquire houses.

There are tons of ways to get property without good credit like seller financing, hard money, private money, etc. Don't let bad credit stop you from learning about and using those techniques if they are the answers to getting around bad credit. 

I hope that helps.

Oh my goodness no....I know where all my meals are coming from.  haha!  I am working with a mortgage professional to get my past debt cleared up.  I am not pulling a score from any bureau at this point .  I haven't utilized credit in over a decade.  I am going to learn everything I can and when it comes time to buy my first property....my house will be in order.  Thank you!

Originally posted by @Suzie Wheeler :

Should I clean up my credit before I even think about being a real estate investor?

Susie I work with people that terrible credit but they want to build a real estate operator business, which isn't exactly investing but it's making money with residential real estate. 

Some of tools are used are subject to existing financing, lease purchase and lease options, installment sales, doing joint ventures with Sellars, and Wholesaling

None of this requires any credit whatsoever 

Suzie, move forward and get going. If you can't make money in real estate without directly using your credit, you probably won't make more using your credit. The point is, you have to be creative and know what your doing regardless. Don't let anything stop you.

Originally posted by @Brian Gibbons :
Originally posted by @Suzie Wheeler:

Should I clean up my credit before I even think about being a real estate investor?

GREAT advice Brian! I sleep very well at night because all the property I own is paid for! I'm not worried about how long it might take for a certain property to sell.

I especially agree with Brian's joint venture & wholesaling tools. I know many successful individuals who started out slowly, but never borrowed money. 

(I'm also a Dave Ramsey fan and he does not believe in credit scores.)

Good stuff!

Jill

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