Beginners guide to becoming WEALTHY

[Guitar_Whizz]

STR8UP, PLEASE reply to my questions if you get a chance, I'd be most grateful!

 

[Abnigh9]

Bump.

I might need it. So will others.

It's good info.

 

[StockTrader]

Here is my ultimate guide to becoming wealthy:

I've read alot of books by Tony Robbins, Napoleon Hill, Rich/Dad Poor Dad, Stock Trading books (hence the name), Business, Marketing, you name it.

This is what they don't teach you in school

The core foundation for wealth starts in your mind. No, this isn't new age, motivational talk. To become wealthy, you have to first believe that it is possible! When you don't believe in something, you won't take the necessary action to make it happen.

When guys were AFC's, did you believe girls would like you? No. How much action did you take to go after the hottest cheerleader in the school if you're the class nerd? Probably none. Because you didn't believe it, you thought, what's the point of even trying.

I improved my beliefs by hanging around people who were much more successful than I was. Tony Robbins gives the analogy of a tennis game. If you want to play tennis and get good, you don't play someone at your level, and you sure don't play someone at a lower level. If you want to get good, you've got to play a much more powerful player to lift your game. It may be difficult just to stay on the court at first, but if you want to stay there and compete, you've got to improve yourself. The people in my Toastmasters group and in another goal setting group have raised my game considerably. Who you spend time with is who you become

New beliefs provide the foundation for taking more action, aiming higher, working smarter, and reaching your goals.

Most people dabble in life. They never really master anything. They never get great in any one subject. Suppose Tiger Woods had a choice.

He could either be a very good computer programmer, a very good golfer, a very good real estate broker and an ok swimmer.

Or, what if he focused just on mastering one particular thing (golf)? Being good or ok in a subject doesn't make you wealthy When you get really great at something the money follows.

My last quote comes from a friend who is the top salesman for Investors Business Daily in his office. "If you want to break a table in half with your bare hand, don't aim for the table, aim for the floor below it". Go beyond your limitations.

 

[strong like bull]

quite possibly the greatest thread ever.

is this in the bible? it should be.

great job, STR8UP and those whove contributed.

 

[Lt dan]

i love this thread. i think this was actually a big influence in my current way of thinking. how i plan on never having a "job" again in my life. and although, i think str8up has a very good knowledge of how to make money.
str8up, i want to talk to you. do you have an aol screen name. i think you could probably help me with some stuff.

 

[Abnigh9]

Indeed, quite possibly the best thread ever.

Real estate is very easy for beginner, almost as easy as it is for an expert.

A dropout, a homeless, anyone, I mean ANYONE and EVERYONE (well, except those on the run ) can get a house or a mansion no question asked IF they are a great negotiator.

I mean this.

I got a property costing over $7,005,000 (a hotel in fact) with no money down. It generated a gross worth of $1,500,000 and the expense is not even close to $100,000.

John T. Reed is a pessimistic. Robert Kiyosaki is a optimistic. Get the difference. Although I still have a mortgage (in fact, I love mortgage, keeps me alive and well) on that property, I can spend my life well and best part is, I contribute to the society and it makes me feel like.. God.

How? I built church. I gave a free house away (I know, single family but still, better than being a homeless) to a homeless and taught him a little of real estate. He's now off having a job.

All my kids are masters in real estate investing (well when I say masters, I mean they are well-knowledgable of REI) and they all have their own home. When most of them are 18, they can get rid of the "co-signed contract".

It sucks that laws in America and Europe are getting worst.

At first before the 80s, all you need is to have the know-how and money to get you started. Now you need to be 18.

PS - the best part about REI is, I get to wear my favorite "lucky" ecko sweater and sean john pants all over the place without having to worry about "I gotta wear this suit for this meeting, that clothes for... etc"

The disadvantage of REI are heavily, and I mean BIG-TIME, outweighed by the advantage of REI.

 

[One on One]

You mentioned it was a good idea to go out and get a bunch of credit cards. Does it matter what credit cards you get or will it not make a difference as long as you pay them off on time? Also, when you mention "buy assets," what do you mean other than properties, business assets, etc? I'm still in college and I can't really afford to buy appreciating assets. Sure, I shouldn't waste too much on partying, but it's not like clothes and food are real assets.

 

[Abnigh9]

Originally posted by One on One
You mentioned it was a good idea to go out and get a bunch of credit cards. Does it matter what credit cards you get or will it not make a difference as long as you pay them off on time? Also, when you mention "buy assets," what do you mean other than properties, business assets, etc? I'm still in college and I can't really afford to buy appreciating assets. Sure, I shouldn't waste too much on partying, but it's not like clothes and food are real assets.

I know I didn't say it was a good idea to go out and get a bunch of credit card.. not sure where you got that from but I do believe that's not a very bright idea. That's my PERSONAL belief.

If you're looking to build credit, here's my way (really it's Russ Whitney's but.. c'mon I'm not selling anything.. ok fine, it's not my way... it is now!! ).
Go out, insert 1k (if you don't have it, borrow, ALL business no matter which are borrowed money, NO business, not even Bill Gate's business is out-of-pocket, all borrowed; borrow from credit card or a nice relative [bad relative = you will come back to me begging me for another advice]) (btw, make sure it has low interest, anymore than 10, I say GO **** YOURSELF BANKER [whoever your banker is lol]) and open a savings account with a COMMUNITY bank (not a commercial = large bank like Visa or whatever).

After that, about a week, (I say 5 days but Russ say a week, maybe it's because your mindset changes every week )
and setup an appointment with the branch manager. Be nice, ask him for 1,000 and take that cash (yes, in cash, paper, green as passbook loan) and go to another community bank, take it to another community bank (different "brand name" bank) and do the same. Repay the first bank and thank em. Then repeat the process. You should have about 2k of credit line now. Another bank would be 3k.

That's more than enough of 3k down payment for a house to your beginning wealth.

Hopefully what I said is not confusing.

And remember, once you start, there's no stopping. If you stall, you lose money. You can lose your shirt for not paying loans or whatever. That's the only that's hard about REI. Everything else? Easy!!

I wish I can give all my property and holdings away but I can't do that (For personal and business reasons as well as self, I'm too old) because it's so easy if I was only 20. EASY! All my kids have brighter futures than your kids. Hehe, yah!

You see, it's all about the mindset. A lazy person would take this advice and **** up in the middle of it because he decided to stop.

A real motivated person would study this, make sure he understand fully of what the **** is going on, then take action and chain the actions. It becomes a flow. Two month later he comes back on sosuave (or wherever he got the advice) and thank me/Russ. Then cry and hate his parents for not teaching him that.

 

[Abnigh9]

Always go for no down-payments.

When you sell, always let the others have no down-payments.


I emphasize, MAKE THIS SOCIETY A NO DOWN-PAYMENTS!!!

 

[One on One]

Abnigh,

I think I get it, however, how does the 3rd bank thing work? As I see it, you'd already have taken a loan from bank 1 to set up account in bank 2 and taken a loan from bank 2 to repay bank 1 so you've taken a loan from both of your banks already. Is it okay to then take another loan from one of those banks to set up the savings in the 3rd bank? That's the only way I can see this happening...not saying it's not perfectly reasonable, but I have no experience with this. Also, does the 5-7 day wait serve any purpose? Would they care if I just went bank-hopping one day or would that make them suspicious of something?

 

[Abnigh9]

Originally posted by One on One
Abnigh,

I think I get it, however, how does the 3rd bank thing work? As I see it, you'd already have taken a loan from bank 1 to set up account in bank 2 and taken a loan from bank 2 to repay bank 1 so you've taken a loan from both of your banks already. Is it okay to then take another loan from one of those banks to set up the savings in the 3rd bank? That's the only way I can see this happening...not saying it's not perfectly reasonable, but I have no experience with this. Also, does the 5-7 day wait serve any purpose? Would they care if I just went bank-hopping one day or would that make them suspicious of something?

Well it's very hard to explain because I started with a very good friend, the banker I already knew him very well. In fact, I just say I need a loan (and state which) and no question asked, he gives it to me. He knows me so well sometime we just hang out to play basketball or watch movies in my backyard. It's who you know.
Try to make friends at the banks, it cost nothing. Use your DJ skills. Attract them, by any mean necessary. If they're gay, even better. Hell I know a gay banker who likes me. You can be a genius like Tesla or Einstein, if you don't know how to negotiate, you will not be any successful than a homeless who won't speak and won't act.

You see, you can go bank-hopping if you knew the banker well (like I do, he's in fact, so good-friend of mine, he can pretty much lend me any amount, as long as he doesn't get into trouble, sometime he even do a 110% financing for me or the highest, 275%) and he wouldn't care. He trust me. A friend in need is a friend indeed.

You might be thinking third is it, here's something you need to keep in mind.

All you need is two bank. You trade around back and forth. That is insert 1k in the first, ask for second, insert in second bank, ask for nothing. That's two bank.

Then you ask more cash, insert it into the third bank. You're basically establishing credit line. If I'm understanding you correctly, yes it's ok to do it on the third.

What the bank really wants to see is everyone happy. Happy owner, happy bank. Not happy owner, angry bank. Don't take out ANY cash on the savings acct. Please don't, not if you don't know the banker well. If you knew the banker well, you can take anything out. But if you don't, don't do it. You can make the bank suspicious and wonderous.

Since you said you have no experience, buy Robert Kiyosaki's board game and buy Russ Whitney's book, Building Wealth. THAT'S ALL YOU NEED TO DO! Play it, stick with it, learn it, then finally, live it. I don't have the board game although I plan to get it, but I have all the books. It's something you live by when it comes to money. Get the material, it's priceless.

You won't learn anything from what I just taught you, I suggest you really go out and do it, because words cannot express how actions are. Situation change. Banks change. People change. Laws, especially, change. Learn.

And change your mindset, learn to really change it. Not stupid mantras, I mean serious change. When all my children are over 18 (in three years), I will leave a phone number, you can call me. I might even loan you. Why am I doing this? Mindset of abundance and love. That's what we all need.

People wonder why if it's so easy, nobody does it.
Well guess what? Why is it so easy to get women yet most won't do it?

For the same reason. If you don't know.

FEAR. DOUBT.

Remember when you were scared to approach that hot lady?

Thank god your life don't depend on hot girls as it do on money.

One last thing, the bank hopping thing. Yes I believe they would. One bank and another bank are direct competitionist.

Imagine you own a bank and you have a customer who goes to your bank to use it. Then goes to another bank. In fact, he's using that bank's money to pay you back. Doesn't that make you feel a bit uncomfortable? If the customer was to **** up and **** happens like the need of court, your bank is in big trouble. BIG trouble. You can lose your bank, the other bank can have your bank and the customer goes to jail. Or probably not jail but fine.

Whose happy? Your competition. Not you. Not the customer. More anger than happiness.

 

[Abnigh9]

Btw, you have to understand EXACTLY how much credit line you want and WHY you want it.

Basically you have to be clear of wtf you are doing.

What are you gonna do because eventually you have to pay back that one loan. See? If you don't know what's the next step, you better bend over and beg for a miracle that nothing will go in your ass and everything just hit your butt cheek.

 

[Abnigh9]

Golly!! I feel like mini-Robert Kiyosaki!

 

[One on One]

Abnigh,

How would you respond to the following statements by John T. Reed on Whitney's suggested method of establishing a line of credit. http://www.johntreed.com/Whitneyinfomercial.html

The notion that this would work stems from an era before Russ Whitney was born. Back in the days depicted in the 1946 movie It’s a Wonderful Life, bank loan officers held their jobs for life. As you may recall, in that movie, Jimmy Stewart played “George Bailey,” the president of a small town Building and Loan Association. They made their decisions based on knowing the borrower personally. Borrowing small amounts and paying them off were a sensible way to establish credit. Also, back then, $1,000 was a lot of money—$9,435 in 2003 dollars.

Even then, this technique was unethical, immoral, and arguably illegal. It is akin to a check-kiting scheme. Obviously, it depends on each lender erroneously thinking they are the only ones lending to you. But back then, you might get away with it because the lenders would not know otherwise.

Then something called a credit report was invented. Initially, it recorded payment history on installment debt. With Whitney’s technique, that meant the five lenders would eventually find out about each other when they checked your credit report a year or so down the line.

Inquiries, too
Then they improved credit reports to start adding inquiries. That is, whenever any prospective creditor inquired about your credit, it was reported to all other inquirers. Why? Precisely to stop the sort of simultaneous borrowing Whitney is advocating.

So now, if you go into five banks in rapid succession and try to borrow or arrange lines of credit, they will each run a credit check, see the inquiries of the other banks, and thereby find out the whole story of exactly what you are doing. They will be annoyed, reject you, and tell you not to let the door hit you in the butt on your way out. Far from establishing credit, you will have destroyed your credibility.

There is also the issue of stupidity. Why would anyone deposit $1,000, then borrow back their own money and pay interest on it? You would not make an impression on the loan officer as being a good risk. Rather, you make an impression as being an idiot—or someone who is trying to run some ancient scam they learned at a get-rich-quick seminar.

If you said you were doing it to establish credit, the loan officer would explain that in this day of credit reports and credit scores, you establish credit with Bank A by borrowing from any creditor and making the payments on time.

Finally there is the issue of the amount of unsecured credit you deserve. Each of us qualifies for a certain amount of unsecured credit—also called a signature loan. If you apply to ten banks, there may be some small variation in how much credit each offers you, but they generally will all offer you the around same amount.

How is it determined? By your salary or net income, assets, liabilities, and credit score. Whitney is implying that a person who is eligible only for a $1,000 secured loan can easily qualify for a $60,000 unsecured line of credit simply by playing escalating games with passbook loans. His basic idea is to get to where you qualify for, say, $5,000 in unsecured credit, then simultaneously borrow that amount from twelve different banks.

It doesn’t work that way. As I said, nowadays, they will learn about other inquiries when you apply for a line of credit with multiple lenders. They also make you tell them in writing about all your other lines of credit, regardless of whether you are currently borrowing against them.

The lender will then calculate how much total unsecured credit they think you qualify for and subtract all your existing lines of credit from that amount. For example, If you qualify for $10,000 in unsecured lines of credit, and you already have a $5,000 line at one bank and a $2,000 line with a credit card, they will give you a line for an additional $3,000, bringing your total lines of credit to $10,000. You absolutely cannot get more lines of credit than you qualify for by simultaneously applying to multiple lenders and not telling each about the others.

Arguably, even attempting to do that would be a felony. Whitney is big on dismissing such disclosures as, “The bank doesn’t need to know that.” Yes, they do (18 USC 1001) and nowadays they will specifically ask you in writing. You cannot just not mention the other line of credit applications anymore. It would be a felony. Plus, they will force you to make a written statement so you would have to lie, not just not mention it.

 

[strong like bull]

hmm. so whats the deal?

is whitney legit or full of ****?

ill be honest and say that i was impressed by whitneys ideas, as well as STR8UP's. but whats the deal? John T. Reed, if HE is legit, debunked a great deal of what whitney/str8up said.

 

[Abnigh9]

Originally posted by strong like bull
hmm. so whats the deal?

is whitney legit or full of ****?

ill be honest and say that i was impressed by whitneys ideas, as well as STR8UP's. but whats the deal? John T. Reed, if HE is legit, debunked a great deal of what whitney/str8up said.

Remember, all books and my advice are meant for educational use only! To really learn with experience you need to go out and do it. Even if it's a learning curve, you'll understand more.

Whitney's method aren't bad nor are they illegal. At least not the $1000 one. Just tell the banker you're trying to build credit and he'll tell you (so you won't help his competitor) to just spend money and pay it back well. Bankers are people too, think like a banker and you will feel out that you do not want your customers to be rich, otherwise your customers don't need you and you want to feel needed.

If you deposit $1000, that's your credit right there, why accumulate (when that can take forever if you have almost nothing). Sure there's interest rate but you're only paying it for a couple of month (usually) and you're taking it all out. You're gonna be applying it for other investment like REI.

Btw, check out Streetwise's "Landlording & Property Managment". It also teaches a little about REI, it will say most people are against landlords, especially the gov't. You know why? That's right, Robert Kiyosaki comes into mind.

I'll paraphrase a little from Streetwise's book:
"In case you haven't already figured this out, governments just love to govern. The men and women who get elected and appointed seem to be filled with a burning desire to legislate pubic rights, tenant rights, property owern rights, and lots of other rights. They always seem to cost landlords a great deal of their hard-earned money.
When a cities or counties need more money, the folks in charge take aim for landlord's profit canter by raising taxes, an action that directly impacts the landlord's cash flow.

In addition to taxes, governmnet regulations may require annual, presale, pest, and other miscellaneous inspections, as well as the installaion of smoke alarms, sprinklers, and handicapped access ramps, among others things, on your peroperty."

That's it, get the book if you want to read more. Anyway back to topic...

People were raised to think poor, not rich. The richer you are, the more the poor want to oppress you!!! When you're rich, the poor grumble and pity you thinking you are extremely materialized (.. when you're probably not, hell I have a desk, a computer, and a bed in my room, not all that nice ****; the rich were portrayed badly just like martial art is, it's not all that bad, it's if once you know it/have the money, you're very happy, that's all... jealousy can really kill thousands of other people)

John T. Reed has a real personality problem. I'm not gonna go any further attacking him because that's not against his method. Hell he has no method. He requires you to buy books from him because he doesn't want to put it on Amazon.com and Barnesandnoble. Why not? Don't know, his excuse is "because they're good book".

He attacks people on their personal level (read more, you'll see, he attacks Robert's life, sex life, the "he doesn't have kids!" and slanders by saying "he's pathetic, it's IMPOSSIBLE to get a no down payment!!") and not on their method. Granted, he is like an octopus that may attack everything but not a good one.

Have you ever realize? It's much easier to attack someone than to bring a good argument. Think about all of that. I'm more on Robert Kiyosaki's side than Russ Whitney OR John Reed because I have read more about him and they conform to my beliefs more than do Russ Whitney's and John Reed.

Also, NOTICE, one last thing -
Russ and Robert support NO DOWN PAYMENT.
Modern days are 15-20% down payment.
John T. Reed (I believe) believes you can get a 3-5% down payment.

3-5 is so close to 0.

Kind of.. dumb isn't it? If you want to negotiate that far, why not negotiate for a 0!?

PS : this society needs to be more nicer people (not everyday "I'll kill you!") and we need to make ourselves a no down payment society

 

[Abnigh9]

I got ALL of my properties NO DOWN PAYMENTS!

If I can do it in NY, where the market is much harder, YOU ****ING CAN TOO, DON'T TELL ME YOU CAN'T YOU LAZY BASTARD!

Jeez..

 

[Abnigh9]

The notion that this would work stems from an era before Russ Whitney was born. Back in the days depicted in the 1946 movie It's a Wonderful Life, bank loan officers held their jobs for life. As you may recall, in that movie, Jimmy Stewart played "George Bailey," the president of a small town Building and Loan Association. They made their decisions based on knowing the borrower personally. Borrowing small amounts and paying them off were a sensible way to establish credit. Also, back then, $1,000 was a lot of money-$9,435 in 2003 dollars.

No really? Btw, James Bond is real too!

1,000$ today= approx. 9$ back then! Do your math, we're basically borrowing 9$ back then, while bread cost 1 cents. Nobody said to borrow 9,435$ confusing numbers.

Even then, this technique was unethical, immoral, and arguably illegal. It is akin to a check-kiting scheme.

Ok, let's make all form of martial art and self defense ILLEGAL! They're akin to robberies and hurting someone else!
No, you think? We take up martial art to defend ourselves just as we do this to make ourselves money. Again, nobody said to do the check-kiting scheme as nobody is using ma to purposedly hurt others.

Do you ever read your own words? You said ARGUABLY, that means it's not illegal, in your world it is because you don't like why it's working so successfully. Now you're practically saying Whitney's way is illegal which IS the $1000.

I know Jeet Kune Do is a good martial art for self defense (please, you can't clinch or do a take down in front of 3 people let alone a good kick so JKD is enough to take out 2; I'm an amatuer fighter, I speak from experience, please don't count any of what I say on this thread as a brag, I'm trying to help).
Why is it good? You have nut kicking, eye jabbing, wrist twisting kind of moves. It's arguably as illegal as guns. They both can kill. What's next? Ban Jeet Kune Do and say Bruce Lee's method is a flaw? Then follow your method and hit someone in the stomach or thigh (which is the 5% down payment) instead of the groin (0%).

See where I am getting at?

Obviously, it depends on each lender erroneously thinking they are the only ones lending to you.

In business, NOBODY and I mean !!NOBODY!! is truly innocent. Unless your wealth was inherited. Most likely it's not and you can bet most people are not.

But back then, you might get away with it because the lenders would not know otherwise.

It's tough isn't it? Try local banks. Big banks=ability to spend more money and are more strict with their policies, they would not change for one customer. They don't care if they lose one customer. Local banks, still aspiring, they'll do anything as long as they are looked at as a good bank and will adjust.

The world doesn't work strictly on a system, **** do change.

Then something called a credit report was invented. Initially, it recorded payment history on installment debt.

I believe it was invented at the same time loaning and banking was. Just not conventional.

With Whitney's technique, that meant the five lenders would eventually find out about each other when they checked your credit report a year or so down the line.

... didn't I say? YOU WILL NOT BE BORROWING THIS LONG TERM. I'm not even sure if you even read the entire book. Granted, Whitney is not the best writer or expressionist but hell he's trying to help. He was a poor man and a dropout (who also robbed later on but found ways out) and he (I believes) make the same amount if not more than a HARVARD GRADUATE.
That's to you John. A Harvard who don't make more than 100k that you think you can. Then eventually you come back to our community and society and write books similar to ours by varying our methods. Btw, Richard and John make similar amount of money and do live in a house with the same worth. I'm not sure how much Whitney makes, never checked. Richard sure was NOT from Harvard and even got left back once.
It goes to show anyone can get rich.

Inquiries, too
Then they improved credit reports to start adding inquiries. That is, whenever any prospective creditor inquired about your credit, it was reported to all other inquirers. Why? Precisely to stop the sort of simultaneous borrowing Whitney is advocating.

Hm.. I'm not really perfectly sure about local bank wanting to work with larger commercial bank even if it's for checking inquiries. There's more than just that purpose just to get rid of Whitney, it's also to check how you are doing with others. It may even improve your chance of getting a higher loan than what you are planning to get since if the banker checks "hm, ok he has 10 inquiries, all of which are on 100% (you're doing this quick)" he lends. Not all banker and lenders think negatively my friend John.

So now, if you go into five banks in rapid succession and try to borrow or arrange lines of credit, they will each run a credit check, see the inquiries of the other banks, and thereby find out the whole story of exactly what you are doing. They will be annoyed, reject you, and tell you not to let the door hit you in the butt on your way out.

That can happen. I get rejected by my lawyers when I asked him to help my son on how to dropout or what the laws are.

What's next? My son's right of going to school becomes a need? You gonna arrest me because my son doesn't want to go?

Same with this. They can get annoyed because you are working with other banks, they may also (if smaller bank) try to convince you to get rid of working with other banks and work with them.

Far from establishing credit, you will have destroyed your credibility.

Credibility, with whom? The people (in terms of people skills) or the credit (in terms of cash)? You can't lose everything, that's very hard to do. That's what you have to work on to lose. If you mean losing credibility to people, sure they might not like you. I wouldn't blame my tenants for cursing me out because they're poorer and don't know ways out. So in fact, I rather have them scream and kick than stay quiet.

Credibility in terms of cash? Well. How? Everything has to work on paper before it actually is counted as "credit to lose".
You borrow your money, you pay em back. Nothing unlawful. You borrow your money, put it into the banks, do the same with the others. Again, it's not unlawful. Just perhaps unethnical at MOST.
That's because banks don't like you working with other banks. Simple, tel Microsoft you use Linux, they'll act the same way.

There is also the issue of stupidity.

When it comes to you, everything is stupid.

Why would anyone deposit $1,000, then borrow back their own money and pay interest on it?
You would not make an impression on the loan officer as being a good risk. Rather, you make an impression as being an idiot-or someone who is trying to run some ancient scam they learned at a get-rich-quick seminar.

Nobody said REI is to get rich quick. The get-rich-quick seminar are advocates of wanting you to become a better person, not to get quick. Motivation should be the word.

If you said you were doing it to establish credit, the loan officer would explain that in this day of credit reports and credit scores, you establish credit with Bank A by borrowing from any creditor and making the payments on time.

....... why add A to the bank if there's only one bank? Oh I get it, you hate competition officer. Sorry.

Btw, there are other ways similar or "akin" to Whitney's $1000. When someone write a book about it, please don't put them down and say it's illegal and stupid. It's not the method that is stupid, it's the person. If he does it wrong, then he does it wrong.




Where the hell is Str8up anyway?

 

[Abnigh9]

Finally there is the issue of the amount of unsecured credit you deserve. Each of us qualifies for a certain amount of unsecured credit-also called a signature loan. If you apply to ten banks, there may be some small variation in how much credit each offers you, but they generally will all offer you the around same amount.

I have nothing to say except that generally, commercial bank do indeed offer more than local banks. So I'll say this, it's tough work. Stop being lazy and go out there and work for it.

How is it determined? By your salary or net income, assets, liabilities, and credit score.

Indeed, except, I never really worked my entire life. They still lended it to me.

Whitney is implying that a person who is eligible only for a $1,000 secured loan can easily qualify for a $60,000 unsecured line of credit simply by playing escalating games with passbook loans. His basic idea is to get to where you qualify for, say, $5,000 in unsecured credit, then simultaneously borrow that amount from twelve different banks. It doesn't work that way.

As I said, nowadays, they will learn about other inquiries when you apply for a line of credit with multiple lenders. They also make you tell them in writing about all your other lines of credit, regardless of whether you are currently borrowing against them. The lender will then calculate how much total unsecured credit they think you qualify for and subtract all your existing lines of credit from that amount.

For example, If you qualify for $10,000 in unsecured lines of credit, and you already have a $5,000 line at one bank and a $2,000 line with a credit card, they will give you a line for an additional $3,000, bringing your total lines of credit to $10,000. You absolutely cannot get more lines of credit than you qualify for by simultaneously applying to multiple lenders and not telling each about the others.

Arguably, even attempting to do that would be a felony. Whitney is big on dismissing such disclosures as, "The bank doesn't need to know that." Yes, they do (18 USC 1001) and nowadays they will specifically ask you in writing.

You cannot just not mention the other line of credit applications anymore. It would be a felony. Plus, they will force you to make a written statement so you would have to lie, not just not mention it.

Can anyone tell me what does the last sentence mean? I seriously don't understand it.. what does "so you would have to lie, not just to mention it" mean?

I'm not very good with Whitney's method and I HAVE said I never used it since I have a good relationship with the banker. But I do have confident that it will work in one way if you do it correctly and do it before the law change.

And I will also admit, I don't know Russ Whitney's method too much and I do know he has a bad reputation simply because of three reason which I can think of:
1- he was a robber, arrested
2- he is not a good businessmen, regardless of his intention
3- he dropped out

I also do not know everything, so they were left out intentionally so I can research it. I'll get back to you guys on this.

People can look of all sort of ways to give you trouble if you apply to any one of these. Right now one of my neighbor calls me a "rat who is too stupid to make any money so he has to leech off ours".

Yeah, I'm renting out the apartment. I'm leeching. Rightttttttttttt....

I'm just arguing for Russ, so if I'm wrong, correct me. I am not a lawyer or an accountant. Just someone who worked in REI and succeeded and a father of 4.

 

[One on One]

Abnigh,

Thanks for the detailed response. To clarify, I'm only playing devil's advocate here and checking out all sides of the story before getting myself involved in such large transactions as real estate. I agree that John Reed is a bit shady in his "reviews," as he doesn't actually review techniques, but, more or less, reviews and denigrates character. I could care less if I learn from crooks or MBAs as long as I'm learning the right information. It's just very difficult to determine what is right.

As for the $1,000 loans, I am leaning towards giving it a go. My question is how many loans will I have to take out before I can get a signature loan? Is there any point at which I could be assured of such a loan so I can stop the loaning cycle? As I read from Whitney, the cycle can end when you have a signature loan and can thereby withdraw $500 from both accounts and pay off the remaining loan. I don't think it can end without a signature loan because the lien on your account would remain and I assume they wouldn't let you withdraw. Also, is there any risk to my credit by cycling banks if I pay back the loans? I could understand angry bankers, but as long as it doesn't go on my credit record, I don't care.

Also, I am in a very expensive area, where a modest priced house would go for $300,000. Anything lower than that and you're probably talking a fixer-upper. I don't have the experience to get into fixer-uppers at this point, although they do sound intriguing down the line. I think flipping is my best bet to enter the industry (as landlording would also be too overwhelming for a first timer). Now, I do not expect I can get nothing down immediately. I expect a down of 10-20% so that means I'd have to come up with $30,000 on the minimum. I'm just about to graduate college and there's no way I can get that kind of credit in a short time. What can I do to get started, then?