Tag Archive for: credit score

DSCR Loans: What Type of Properties Qualify?

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DSCR Loans: What Type of Properties Qualify?

Today we are going to discuss DSCR loans and look at what type of properties qualify. DSCR loans are an excellent product because they can provide more flexibility than traditional lenders. Unlike Fannie and Freddie, or traditional lenders, DSCR loans do not have the same guidelines. Instead, DSCR loans are regulated by a few big investors and do not force people to fit into a computerized box. DSCR loans create an opportunity for investors to find the perfect loan to meet their needs. 

Unique properties require unique loans.

Many unique properties include ones that need a smaller loan, a rural loan, mixed use, or properties that are above 4 units.  Keep in mind that some lenders are not always able to meet your needs. Unlike traditional loans, DSCR lenders all follow different guidelines and requirements. While one will do a DSCR ratio of 1, another lender will require 1.1 to get their best rates. Your credit score also plays a role in loan approval. Some lenders will go down to a 620 credit score, while others will say that 680 is the lowest they will go. There are so many different options that are available to investors. Be sure to take your time to find the best option for you and your property.  

The lending box.

There is a lending box that 60% to 70% of investors fit into. This box requires them to have a 700 credit score, 75% LTV, and a 1 to 4 unit property. For these investors, it becomes a matter of price shopping to see which lender has the best price for their property. If you don’t fit into this box don’t worry! There are a multitude of loan options available that can provide the flexibility you need to succeed. Do you have a VRBO, Airbnb property, pad rental, or a rural property? Find the right loan and the right amount for your next investment project. Whether it’s $50K or $300K, DSCR lenders have the versatility that can open the door to endless possibilities.

We are here to help!

Are you in need of a DSCR loan for a unique property? Here at The Cash Flow Company we are happy to run through the numbers to see which loan is best for you. Most importantly, there is no need to run your credit! Don’t get stressed trying to fit into a lending box! Keep your options open and find the right DSCR lender today! 

Contact us today to find out more about DSCR loans! 

Watch our most recent video to find out more about: DSCR Loans: What Type of Properties Qualify?

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This Makes a HUGE Impact on Your Credit Score

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Business Owners: This Makes a HUGE Impact on Your Credit Score

Many business owners wonder what will make the biggest impact on their credit score. The answer is using personal credit for business expenses! If you max out your personal credit card with business expenses and fail to make payments on time, then it will show up on your credit report. In order to be successful, it is imperative that you maintain your credit score. Those who do will be able to get approved for business credit cards and loans in the future. How can you prevent any further strain on your credit score? Let’s take a closer look. 

What is the credit utilization rate and how does it affect you?

The credit utilization rate is the sum of your balances divided by the amount that you were approved for. If you are above 20% of your credit utilization rate, it will lower your credit score. For example, if you have a $10K personal credit card and use $3K of it, then it will decrease your credit score. However, if you have a $5K business credit card and use $4800, your credit score will not be impacted. In many instances, your credit score will by using a business credit card as opposed to a personal credit card.

Business credit cards are a key to success.

Once you get into business credit cards, the banks will start offering you business loans as well. I receive offers almost weekly that are offering a $30K business loan or a term loan. Investors are always finding ways to bring money into their business so that they aren’t in a cash crunch. Part of that is using credit cards for down payments and escrow. By just going through one extra step to apply for business credit cards, you can continue to use credit cards without affecting your score.

Buying a property has never been easier!

A business credit card is a tool that will not only help you pay for business expenses, but it can also be used to purchase a property. There are services out there who can help you use your credit card to purchase a property as long as things are set up correctly. For example, if you have a $10K limit on a business credit card and want to buy a property for $5K, they can take it directly off of the credit card. That $5K can be used to pay the title company for the earnest money or down payment. In doing so, you can put the property under contract easily by just using a business credit card. Once the property is refinanced or sold, the money can be paid back. 

Create the flexibility you need to succeed! 

Business credit cards provide the flexibility you need to be successful.. The most important benefit to using them is that they will not impact your credit score if you run up the balances. Almost every investor runs up their balance. You are not alone! Don’t fall for the deceptive leverage of personal credit cards. By using more than 20%, it will not only affect your credit score, but it will also cost you more. 

Don’t let your business expenses affect your personal life.

While investors are trying to use the leverage that they have available, using personal credit just makes it harder. If you are a business owner who is doing flips and rental using your personal credit cards, it will affect your personal life. For example, if your wife wants to get a new car or you need a HELOC, you may not have the credit score or DTI that you need to qualify. Just to clarify, DTI is your debt to income ratio.The lenders who will be lending you money are going to see that you have $75K in credit cards and you will have to account for that in your income.

Make the change today!

Business credit cards make life easier for you in so many ways! Protect your credit score by separating business expenses from personal expenses today. Don’t make things harder on yourself! Those who make the switch to business credit cards will create the flexibility needed for business expenses, while maintaining your credit for future loans or projects.

Contact us today to find out more about business credit cards and how you can improve your credit score today!

Watch our most recent video to discover why This Makes a HUGE Impact on Your Credit Score.

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Why You Need to Understand the Lender Pie

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Why You Need to Understand the Lender Pie

Real estate investors often find that the biggest hurdle they face is learning the lending side of real estate. For over 23 years I have been working with investors. Many of them are just starting out and are learning how to build both income and wealth. Wealth in real estate investing is achieved by using other people’s money for leverage. It is important that you understand the lending pie, what it looks like, and how you can make it work for you. This in turn will also help you to better understand how to play the game and win in real estate. 

All lenders are looking for three things that make up their decision if they are going to lend to you. This includes your credit score, LTV, and your income.

1. LTV 

LTV stands for the loan to value. It is determined by evaluating how much money you have in a property, how much equity you have, and what is your piece of this property. Remember if your LTV or credit score is not the perfect piece of the pie, then you may have to compensate for that with a higher rate. We want to make sure that you understand this so that you pay the least amount when you’re investing. Investing is all about creating more wealth and income by paying less on the money that you are borrowing.  

2. Income and Reserves

Income and reserves can either come from you or from the property. If you’re looking at a DSCR or fix and flip, and you are going to sell it, then it is the income that the lenders will evaluate. Reserves include the amount of money you have put away in case something comes up. In regards to rental properties, it is how many months of reserves you have in case the property goes unrented for 3 to 6 months. If you’re a flipper, the reserves can help you make payments over the next 6 to 9 months until your property is sold. Depending on the situation, lenders may want a lower LTV, or may require a higher credit score to help balance things out.  

3. Credit score 

Lenders will evaluate your credit score and how you have paid people in the past before considering loan approval. Lending is primarily based on algorithms, and your credit score is a big determining factor. It is vital to your success as a real estate investor. The higher credit score will get you more money, a higher LTV, and it will provide more flexibility on income requirements. It is imperative for new investors to get their credit score as high as possible because it will lower the interest rates, the lower the mortgage payment, and decrease the amount of income you will need.

In conclusion

It is important that real estate investors understand the lending pie and how it impacts their success. While the lending pie is a mix between credit score, LTV, and income, the pieces are not always equal. This is because everyone’s pie is just a little bit different when lenders are looking. While LTV and income are more difficult to change, your credit score is a place where you can make the biggest impact. Be on the lookout for future videos that focus on credit and easy ways to raise your scores. 

Our goal is to make sure that you are as successful as possible. Contact us to find out more about the lending pie and how you can raise your credit scores. 

Watch our most recent video about The Lender Pie: 3 Key Loan Qualifications in Real Estate to find out more.

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The Biggest Piece of the Lender Pie

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The Biggest Piece of the Lender Pie

One of the biggest hurdles that many investors face is learning the lending side of real estate. Today we are going to go over the lender pie and how it affects you as an investor. For over 23 years I have been working with investors. Many of them are just starting out and learning how to build both income and wealth. Wealth in real estate investing is achieved by using other people’s money for leverage. It is important that you understand the leverage side, what it looks like, and how you can make it work for you. All lenders base their lending decision on three factors, which are your credit score, LTV, and your income. The biggest piece of the lender pie is credit score!

1.  Credit score 

Lenders will evaluate your credit score and how you have paid people in the past before considering loan approval. Lending is primarily based on algorithms, and your credit score is a big determining factor. 

2.  LTV 

LTV stands for the loan to value. It is determined by evaluating how much money you have in a property, how much equity you have, and what is your piece of this property. LTV is one of the biggest factors that lenders look at when

 determining if they are going to lend to you, how much they will lend, and what it is going to cost.  

3.  Income and Reserves

Income and reserves can either come from you or from the property. If you’re looking at a DSCR or fix and flip, and you are going to sell it, then it is the income that the lenders will evaluate. Reserves include the amount of money you have put away in case something comes up. In regards to rental properties, it is how many months of reserves you have in case the property goes unrented for 3 to 6 months. If you’re a flipper, the reserves can help you make payments over the next 6 to 9 months until your property is sold.  

Which factor is the most important to lenders? 

The answer is that It’s always a mix between the three. However, your credit score has the largest impact on the other two pieces in the lending pie. Here is an example that illustrates how your credit score can affect both your LTV and the flexibility on income requirements.

Example: Credit score 

Your credit score is the most important factor in being approved or denied for a loan. If you have a good property, but a bad credit score in the 500’s, it won’t matter for most lenders. To clarify, a good property could be one that is 50% or 60% LTV. However, most lenders won’t even look at you. This is due to the fact that all lenders have guidelines and have to take into consideration certain things. If you have a 600 or even 620 credit score, then you are going to be limited. Your credit score is vital to your success. The higher credit score will get you more money, a higher LTV, and it will provide more flexibility on income requirements. It is imperative for new investors to get their credit score as high as possible because it will lower the interest rates, the lower the mortgage payment, and decrease the amount of income you will need.

In conclusion

The lending pie provides the perfect visual of how important leverage is for investors. Again, leverage is how you create wealth and income. While the pieces of the pie are not always equal, it is imperative that you understand how your credit score, income, and LTV work together. Remember, a lender is going to look at every piece and make sure that your pie is where it needs to be for approval. While LTV and income are more difficult to change, your credit score is a place where you can make the biggest impact. Be on the lookout for future videos that focus on credit and easy ways to raise your scores.

Our goal is to make sure that you are as successful as possible. Contact us to find out more about the lending pie and how you can raise your credit scores. 

Watch our most recent video about The Lender Pie: 3 Key Loan Qualifications in Real Estate to find out more.

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From Denial to Approval: Credit and Interest Explained

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From Denial to Approval: Credit and Interest Explained

Our goal today is to show how interest rates, credit scores, and LTV can affect your ability to not only qualify for a loan, but also to cash flow on the property. As a result, investors are walking a very fine line between being denied or approved for a loan. Learn how to shift from denial to approval today!

Type of property Purchase price Appraisal 

average 

rents in area 

 Amount down Financing 

30 year loan

 Fees

Taxes

Insurance

HOA

 DSCR 

(LTV) 
Rental $250k $1,950 20% 80%

($200K loan) 

 $300 75%
Credit Score DSCR rate Payment amount 

principle and interest

 Payment amount plus fees  Cash flow 

based on appraisal 
Client 1 680 9.75% $1,718 $2,018 -$68.00
Client 2 720 8.99% $1,608 $1,908 +$42.00
Client 3 780 8.75% $1,573 $1,873 +77.00

The power of credit scores.

Your credit scores not only affect your rates, but they also will impact your cash flow on the property. Do you need to raise your credit score in order to qualify? We can help you get your credit scores back on track with our 911 loan. Contact us today to find out more. As credit scores go up, you will be able to not only capture more monthly income, but you will also create wealth.

How do rates affect cash flow?

As rates continue to rise, your payments are going to increase as well. This in turn causes your cash flow to suffer, and in most cases it will be a negative. Cash flow positive on the other hand, means that there are going to be more properties available for more investors. So keep your eye out for this change!

Rates are decreasing!

Over the past three weeks rates have been decreasing. We may be at the peak right now and many are predicting that rates are going to significantly drop in 2024. It is imperative that you stay up to date and keep track of current trends. We have created a Weekly Investor Mortgage Report for you! Reach out through our website or email to find out more.

Keep increasing your leverage!

In real estate investing leverage is the key to success. It is what makes your wealth and creates your income. By using banks, other people’s money, and filling your leverage buckets, you will set yourself up for success.  

In Conclusion.

This example paints a very clear picture showing how 3 different people compare side by side on the same property. Nowadays, investors can either be denied or approved just based on their credit score, or where the markets are. While being denied is discouraging, it is important that you understand why you didn’t qualify in order to make a change. If you want to impact where you are and where you are going in 2024, then check out our website. We have a lot of ways to positively impact your credit, as well as a weekly newsletter. We are here to help you get on the path to success. 

Watch our most recent video to find out more on How High Interest Rates Impact Real Estate Investments.

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The Lender Pie: 3 Key Loan Qualifications in Real Estate

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The Lender Pie: 3 Key Loan Qualifications in Real Estate

The biggest hurdle that many investors face is learning the lending side of real estate. Today we are going to go over the lender pie and how it affects you as an investor. For over 23 years I have been working with investors. Many of them are just starting out and learning how to build both income and wealth. Wealth in real estate investing is achieved by using other people’s money for leverage. It is important that you understand the leverage side, what it looks like, and how you can make it work for you. This will in turn allow you to better understand how to play the game and win in real estate. Let’s take a look at the three things that lenders are looking for when making their decision for approval.

All lenders are looking for three things that make up their decision if they are going to lend to you. This includes your credit score, LTV, and your income.

1. LTV 

LTV stands for the loan to value. It is determined by evaluating how much money you have in a property, how much equity you have, and what is your piece of this property. LTV is one of the biggest factors that lenders look at when determining if they are going to lend to you, how much they will lend, and what it is going to cost.  

2. Income and Reserves

Income and reserves can either come from you or from the property. If you’re looking at a DSCR or fix and flip, and you are going to sell it, then it is the income that the lenders will evaluate. Reserves include the amount of money you have put away in case something comes up. In regards to rental properties, it is how many months of reserves you have in case the property goes unrented for 3 to 6 months. If you’re a flipper, the reserves can help you make payments over the next 6 to 9 months until your property is sold.  

3. Credit score 

Lenders will evaluate your credit score and how you have paid people in the past before considering loan approval. Lending is primarily based on algorithms, and your credit score is a big determining factor. 

Which factor is the most important to lenders? 

The answer is that It’s always a mix between the credit score, LTV, and income. This is because everyone’s pie is just a little bit different when lenders are looking. Let’s take a look at a few examples and how one piece of the pie can impact the other two. 

Example 1: LTV

First let’s start by looking at LTV. The more money you have into the property the lower the LTV. This lower LTV allows the lender to be more flexible when it comes to your income requirements, or even your credit score. An example of this would be an individual who has owned a rental for a long time and is refinancing it with a 60% LTV. When your LTV is lower, they can overlook and maybe stretch the DTI or even lower the credit score requirements. On the other hand, if you have a property and you are into it for 90%, the lender will then be very diligent in making sure that you hit both the income and credit requirements. Remember if your LTV or credit score is not the perfect piece of the pie, then you may have to compensate for that with a higher rate. We want to make sure that you understand this so that you pay the least amount when you’re investing. Investing is all about creating more wealth and income by paying less on the money that you are borrowing.

Example 2: Income 

The question is, does your personal income make the payments, or can it make the payments on this new debt? The more income you have to cover the expenses, the more lenders can look at a higher LTV or they could even lower credit limitations. On the other side of it, if you have more reserves, the lenders can look at giving you a higher LTV. Just to clarify, reserves include 401K, IRA, stocks, bonds, and savings. Reserves are anything that is liquid. Let’s say your expenses are $1000 a month. This includes your mortgage, HOA, flood insurance, taxes, and insurance payment. If this property is bringing in $300K, the lenders will be a little more flexible on your credit and LTV because they know that this property is able to sustain. However, if the expenses are $1000 and you’re only bringing in $1100, then there is less of a cushion. The lender will see the income as being less sufficient to take any hits or damage if the property goes vacant for a month or the market shifts. They may want a lower LTV or require a higher credit score to help balance things out. 

Example 3: Credit score 

Your credit score is the most important factor in being approved or denied for a loan. If you have a good property, but a bad credit score in the 500’s, it won’t matter for most lenders. To clarify, a good property could be one that is 50% or 60% LTV. However, most lenders won’t even look at you. This is due to the fact that all lenders have guidelines and have to take into consideration certain things. If you have a 600 or even 620 credit score, then you are going to be limited. Your credit score is vital to your success. The higher credit score will get you more money, a higher LTV, and it will provide more flexibility on income requirements. It is imperative for new investors to get their credit score as high as possible because it will lower the interest rates, the lower the mortgage payment, and decrease the amount of income you will need.

In conclusion

These examples create a great picture of what real estate investors need to understand about leverage. Again, leverage is how you create wealth and income. Remember that it is not just one piece of the pie that is taken into consideration in the lending process. Instead, a lender is going to look at every piece and make sure that your pie is where it needs to be for approval. While LTV and income are more difficult to change, your credit score is a place where you can make the biggest impact. Be on the lookout for future videos that focus on credit and easy ways to raise your scores.

Our goal is to make sure that you are as successful as possible. Contact us to find out more about the lending pie and how you can raise your credit scores. 

Watch our most recent video about The Lender Pie: 3 Key Loan Qualifications in Real Estate to find out more.

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How High Interest Rates Impact Real Estate Investments

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How High Interest Rates Impact Real Estate Investments

Today we are going to paint a picture of how high interest rates impact investments for those who fix and flip properties or have rentals. Our goal is to show how rates, credit scores, and LTV can affect your ability to not only qualify for a loan, but also cash flow on the property. We all know what is happening with the Fed and how it is impacting us, but what does that look like on paper? The example that we are reviewing today will provide an excellent visual of how everything plays a role in the real estate game. DSCR is the product we are using today because it is one of the most popular out there.

Type of property Purchase price Appraisal 

average 

rents in area 

 Amount down Financing 

30 year loan

 Fees

Taxes

Insurance

HOA

 DSCR 

(LTV) 
Rental $250k $1,950 20% 80%

($200K loan) 

 $300 75%
Credit Score DSCR rate Payment amount 

principle and interest

 Payment amount plus fees  Cash flow 

based on appraisal 
Client 1 680 9.75% $1,718 $2,018 -$68.00
Client 2 720 8.99% $1,608 $1,908 +$42.00
Client 3 780 8.75% $1,573 $1,873 +77.00

What about Conventional and Fix and Flips?

This example is also representative of a conventional, and fix and flips as well. In a nutshell, the more you pay on interest, the less properties you can handle. 

What is the appraisal?

An appraisal determines the average of rents in the neighborhood and uses this amount in the underwriting. The amount can change depending on if you have a couple years of history with rents that exceed the determined amount. The increasing rates are making it extremely difficult for properties to hit the expected rent amount.

What is the DSCR rate?

DSCR rates are determined based on your LTV. A credit score below 680 typically lowers the LTV from 80% to 75%. Therefore, you would need to put in more money up front on each purchase. If you’re looking at a DSCR with a credit score of 679, you will either be declined or it will flip you into a non ratio DSCR. Which means that your rates are going to be higher. Is a DSCR loan right for you? Visit our website to find out more.

The power of credit scores.

Your credit scores not only affect your rates, but they also will impact your cash flow on the property. Do you need to raise your credit score in order to qualify? We can help you get your credit scores back on track with our 911 loan. Contact us today to find out more. As credit scores go up, you will be able to capture more monthly income and create wealth.

How do rates affect cash flow?

As rates continue to rise, your payments are going to increase as well. This in turn causes your cash flow to suffer, and in most cases it will be a negative. Cash flow positive on the other hand, means that there are going to be more properties available for more investors. So keep your eye out for this change!

Rates are decreasing!

Over the past three weeks rates have been decreasing. We may be at the peak right now and many are predicting that rates are going to significantly drop in 2024. It is imperative that you stay up to date and keep track of current trends. We have created a Weekly Investor Mortgage Report for you! Reach out through our website or email to find out more.

Keep increasing your leverage!

In real estate investing leverage is the key to success. It is what makes your wealth and creates your income. By using banks, other people’s money, and filling your leverage buckets, you will set yourself up for success.  

In Conclusion.

I wanted to paint this picture so you can understand how 3 different people compare side by side on the same property. Investors can either be denied or approved just based on their credit score, or where the markets are. While being denied is discouraging, it is important that you understand why you didn’t qualify and why properties are not cash flowing right now. If you want to impact where you are and where you are going in the New Year, then check out our website. We have a lot of ways to positively impact your credit, as well as a weekly newsletter. We are here to help you get on the path to success. 

Watch our most recent video to find out more on How High Interest Rates Impact Real Estate Investments.

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Boost Credit Scores Overnight With 911 Loan

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Does your credit score need some CPR? We have a 911 loan that can boost credit scores overnight.

In the current economy, credit scores are one of the primary determiners in whether or not you get a loan. Previously, there were more loans available for people with lower scores. More flexibility meant a larger safety net.

However, currently people with low scores are struggling to find loans.

If you do manage to get a loan, your credit score will likely affect your rates, terms, etc. 

Essentially, a good credit score can make you money. But a bad credit score can burn a hole in your pocket.

What is a Credit Score 911 Loan?

A Credit Score 911 Loan essentially comes in and pays off your credit card. It moves that balance to a non-reporting loan.

This lets your credit score skyrocket the moment the next report is processed.

This loan also moves quickly. We can work through the process efficiently on our end, meaning you could see results in as little as two weeks.

Should You Get a 911 Loan?

If your credit score needs an overnight boost, the first thing to do is figure out why your score is low. 

Typically, it’s due to one of two reasons:

  1. You haven’t paid on time
  2. You have a usage issue

If you haven’t paid your bills on time, then unfortunately, there isn’t a quick fix. You’ll just need to heal your score slowly over time.

However, if you have a usage issue, then you’re in luck!

Credit Usage Explained

Credit usage measures the percentage of your total allowed balance you use each month. 

For example, if your usage limit is $10,000, and you’re frequently using $7,000 of that, you have 70% usage.

Ideally, FICO wants to see you using about 20%-30% of your available credit. Any higher than that, and you become riskier for banks.

Especially when you’re beginning as a real estate investor, it can be so easy to rack up the usage: getting supplies at Home Depot, paying contractors, etc. with your personal credit cards.

When that usage percentage goes up, your score goes down.

When your score goes down, your costs go up.

That’s where a Credit Score 911 Usage Loan comes in to pay down that debt and boost credit scores overnight.

What’s Next?

If you’re wondering if a Credit Score 911 Loan is right for you, what steps should you take?

  • Look at sites like Credit Karma or TransUnion. See where your score is at, and run simulators to see what would happen if you paid off certain credit cards.
  • Consider the qualifications for a 911 loan. Are you paying on time? Do you need to fix the problem quickly?

If you’re ready to take the next steps or have questions, reach out to us at Info@TheCashFlowCompany.com. 

We’re always happy to talk you through a 911 loan, how it can pay down debt, and how you can set up your business to avoid this problem in the future.

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Understanding the Credit Score 911 Loan

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If you’re struggling with a low credit score, a 911 loan could help you get back on track!

A Credit Score 911 Usage Loan is essentially a non-reporting loan that pays off all credit cards, allowing your credit score to shoot upwards.

These loans act as a fast-acting antidote to your credit score usage problems. The next time your credit report generates, you should see significant improvement.

Essentially, it’s a quick fix for people who pay their bills on time.

Who Should Use a 911 Loan?

If your credit score is weighed down by a long history of late payments, this loan is not going to help you very effectively. 

These loans are perfect for people whose credit has been plagued by high usage, who need to fix their credit score FAST.

In short, here’s what you should know about a 911 Usage Loan:

  1. 911 loans pay down debt that accumulates through usage issues, not late payments.
  2. We’re an asset-based lender, so make sure you have some real estate to secure your loan.
  3. You need an exit strategy. We want to make sure you have a way of paying that loan back.

Real estate investing is a fast-moving business. It’s important to have a quick solution for an issue that could otherwise cost you thousands of dollars in higher payments or declined deals. 

How Long Before it Pays Down my Debt?

We call this a “Credit Score 911” because we understand that a low credit score can be an emergency need.

It can take as little as 2 weeks (or up to 30 days) to get this loan and see results in your credit score. The timing depends simply on when your credit cards report and when your statements come out.

You still owe the money, but now you owe it to a non-reporting entity.

Although it can be daunting to take out an unexpected usage loan, a delay of a month is far better than a long term delay where you can’t refinance or buy.

 

Read the full article here.

Watch the full video here:

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Does Credit Score Matter in a Bad Real Estate Market?

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When the real estate market tightens up, you might ask “does credit score matter anymore?” The answer is YES! Credit score matters now more than ever.

Once you’ve been in the business for as long as we have, you start noticing patterns. The investing world goes through cycles every few years where things tighten up before flowing normally again. 

However, a ‘bad market’ doesn’t necessarily mean bad news. 

If you’ve prepared beforehand, you can actually take advantage of the challenging landscape to build some wealth.

What is a ‘Bad Real Estate Market’?

Essentially, what’s happening right now is banks are tightening up. This means most are lending out less money, making it harder for investors to get the money they need.

This also means that, over the next 6-9 months, people are going to be getting rid of some properties and fewer people will be buying.

If this sounds like bad news, don’t worry. If you’re ready for these market changes, it can actually be the perfect time for you to buy. 

Get Your Credit Score in Line

In the past, 660-680 used to qualify you for an okay loan. Not anymore! As lenders tighten up, most will be looking for scores closer to 750-799+. 

Lenders are depending more and more on credit scores. Make sure your credit score isn’t holding you back!

If you’re using personal credit cards for your investing projects (using them to buy supplies, pay vendors, etc.) stop now! 

Personal credit cards aren’t made for that level of usage, and most cards will drop your credit score if you’re using too much of your balance on a regular basis.

This can lead to a significant usage issue. There are two things you can do to help fix this problem:

Once you raise your credit score, make sure you maintain it. Since lenders look so closely at your score, you should too!

 

Read the full article here.

Watch the full video here:

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