House Rich, But Cash -and Credit- POOR! =(
when i recently made the big move from nyc to signal hill, ca, i could not get a mortgage cuz i write and wrote off most of my taxable income to uncovered medical costs (was blinded in both eyes couple yrs back while doing humanitarian work overseas, but can now see again after multiple surgeries), and relocation expenses for the past 2 years.
so, i purchased at around market value with half a million in cash savings. it really depleted me, and by the time i'm done with rehab, will be BROKE! all those charges at home depot quickly added up to thousands upon thousands, and the past 2 months i've been behind on payments, and i'm not even nearly done yet, heck im still doing some demo.. so i've decided to negotiate with my credit cards to close the accounts, pay off less than the full amount owned. after the settlements on the credit card,
most other homeowners i've seen that claim being house rich but cash poor, have mortgages to pay on top of not having capital so at least i'm not in that predicament. nor have any kids (that i know of=).
but, im still cash poor. i've calculated i will be left at some point with barely $1.00 in my last still open bank account!
so far i have never done business under business entity, but am contemplating that, if its not too late. what i dont understand is how does one build a new businesses credit, if their personal credit is a mess already?! granted, i've never filed for bankruptcy, never had an auto loan, nor had any judgments or anything and the few credit cards i maxed out, i have already settled but the damage is done because some had already reported as 60 days late and they would not remove that reporting as part of me settling because i got them to settle for half the credit balances.
it would be nice to invest in another property but at this time i'm just glad i have a roof over my head thats paid. i dont wanna sell as its the biggest lot i could find in this overpriced city (quarter acre lot!) and i'm an avid gardener and all so it fits me like a glove.
i have net income re sales/rental commissions averaging around $3,000 a month these days (which is one third of what im used to when i was a boutique realtor in nyc) but its cuz im just gettig warmed up here on the west coast.
i'm also wondering if banks/lenders do house title/deed loans anymore or if they still require 2 yrs tax return (which i dont have) and good credit (which i dont have either)?
i'm perfectly fine with saving up until i have say 100 grand to invest again cuz for me it happens in just a couple years for as i dont spend much on anything other than on home improvement, but wondering if in this day and age of underwriting if theres any other options like secured/collateral loans (not from loan sharks though!) as my home is fully paid for or is it just a useless heap of overpriced stucco & dirt?!