Is this equifax page safe? They say in their terms of agreement that they are allowed to give out my information (SSN) to 3rd parties etc Also is this a 1 time charge of $12 or some sort of subscription because they dont specify.
Beginners guide to becoming WEALTHY
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diplomatic_lies
Master Don Juan
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Where are those lenders who don't look at your credit or assets?
My loan of $20K has been rejected by basically every bank, lending institute, and even those dodgy ads you find in the Pages. The only place I can borrow is from friends, whom combined can only lend me $4000 confidently. Apparently I was told I need to own a house before I can borrow any money.
Do those lenders who don't mind if you have no assets and no income (all my income is unreported, since its not official) actually lend you money? And do they charge high interest?
My loan of $20K has been rejected by basically every bank, lending institute, and even those dodgy ads you find in the Pages. The only place I can borrow is from friends, whom combined can only lend me $4000 confidently. Apparently I was told I need to own a house before I can borrow any money.
Do those lenders who don't mind if you have no assets and no income (all my income is unreported, since its not official) actually lend you money? And do they charge high interest?
Page
Master Don Juan
Read the Richest Man in Babylon -- it is a good book for learning about how t obecome wealthy.
here is a brief run-down of what the book tells you:
1. A part of all you earn is yours to keep.
What this means is that you should set aside 10% of your paycheck or any other money you recieve for savings. When I began doing this, I was surprised that I could do everything that I could do before with only 90% of my paycheck, and after 10 paychecks, I would have saved as much as one entire paycheck is worth.
2. Put your money to work.
Your money will grow slowly but surely by using only the first rule, but often we wish to speed it up. We can do this by being willing to invest our money in profitable use, and often, we will receive back more than what we invested. Repeat rule #1 and #2 for the dividends that you receive for wise investments, and you can continue the process ad infinum.
3. Money stays with those who invest it under the guidance of those wise in it's handling.
This means that if you can find people that know much about how to handle and invest money (they should be someone who you also trust entirely) then your money tends to multiply when you invest it while taking their advice.
4. Money slips away from the man who invests it in things that he is not familiar in, or entrusts it to those who are not adept at handling money.
Basically, don't ask the garbage man for stock tips. Instead, go to a reliable stock broker. If your pipes break, go to a plumber instead of an electrician.
What this means is don't entrust your money to those who do not know shyt about how to invest it successfully. These peoiple are doomed to fail, and if oyu entrust your money to them on something they know nothing about, they wil lpul lyo udown with them.
5. Money flees from the man who buys into schemes and those who promise high rates of return with little proof.
Basically-- don't buy into get-rich-quick schemes. Also, don't frequent casinos in attempts to get rich quick. Don't take risks with your money by investing it in fly-by-night stocks or companies. If you do these things, you will probably lose far more than you wil ever earn with this route.
########
I gave you a brief run-down of the book, but I encourage yo uto buy it so oyu can learn this advice in it's full detail. The book is a fun read, and I highly reccommend it.
here is a brief run-down of what the book tells you:
1. A part of all you earn is yours to keep.
What this means is that you should set aside 10% of your paycheck or any other money you recieve for savings. When I began doing this, I was surprised that I could do everything that I could do before with only 90% of my paycheck, and after 10 paychecks, I would have saved as much as one entire paycheck is worth.
2. Put your money to work.
Your money will grow slowly but surely by using only the first rule, but often we wish to speed it up. We can do this by being willing to invest our money in profitable use, and often, we will receive back more than what we invested. Repeat rule #1 and #2 for the dividends that you receive for wise investments, and you can continue the process ad infinum.
3. Money stays with those who invest it under the guidance of those wise in it's handling.
This means that if you can find people that know much about how to handle and invest money (they should be someone who you also trust entirely) then your money tends to multiply when you invest it while taking their advice.
4. Money slips away from the man who invests it in things that he is not familiar in, or entrusts it to those who are not adept at handling money.
Basically, don't ask the garbage man for stock tips. Instead, go to a reliable stock broker. If your pipes break, go to a plumber instead of an electrician.
What this means is don't entrust your money to those who do not know shyt about how to invest it successfully. These peoiple are doomed to fail, and if oyu entrust your money to them on something they know nothing about, they wil lpul lyo udown with them.
5. Money flees from the man who buys into schemes and those who promise high rates of return with little proof.
Basically-- don't buy into get-rich-quick schemes. Also, don't frequent casinos in attempts to get rich quick. Don't take risks with your money by investing it in fly-by-night stocks or companies. If you do these things, you will probably lose far more than you wil ever earn with this route.
########
I gave you a brief run-down of the book, but I encourage yo uto buy it so oyu can learn this advice in it's full detail. The book is a fun read, and I highly reccommend it.
Ubermensch
Don Juan
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Real Estate is great, BUT ...
Be careful what you do.
If you try to do anything very creative, RUN IT BY A VERY COMPETENT ATTORNEY.
I did one deal in which the judge ruled my lease a mortgage on account of the nature of the deal, and I COULD NOT EVICT THE DEADBEAT who's sponging off me to the tune of $800 per month because of some ridiculously stupid precedent that has been taken beyond its original intent. There's a good chance I'll win the next round ... at the cost of a few thousand dollars of legal fees. If not, it will take about 10 months for the foreclosure process to run its course to get his deadbeat ass out. VERY BAD!
But, that said, I've been making a decent living off real estate investment for the past several years, after starting about $10,000 in debt without a good job. Nothing but a lot of credit cards and a good credit rating to start.
But I've made 2 other very big mistakes, in addition to the bad deal mentioned above:
Big Mistake #1) Having deals take too long to realize the profits.
The main thing I'd advise is not to have a lot of your own money sunk into any one deal for a long time until you have at least $100,000 in some combination of readily available credit and/or money in the bank. Working capital is the fuel that runs the engine. Without it, your program will be choked off.
How do you find the money to do deals without sinking your own money into them? Find "hard-money" lenders who will lend on property based on its after-repair potential, and will fund the purchase, closing costs, and rehab costs. The best deals are generally properties that need a lot of work.
Big Mistake #2) Moving into a house that has turned out too expensive, in an area where the values have stagnated.
Live well below your means. If your regular expenses are too high -- especially non-appreciating assets, such as cars -- you could get eaten up by them. At least I've not pissed away money on expensive cars.
So that's my $0.02 from hard-learned experience and missed opportunity to GET RICH, as opposed to just making a living.
Be careful what you do.
If you try to do anything very creative, RUN IT BY A VERY COMPETENT ATTORNEY.
I did one deal in which the judge ruled my lease a mortgage on account of the nature of the deal, and I COULD NOT EVICT THE DEADBEAT who's sponging off me to the tune of $800 per month because of some ridiculously stupid precedent that has been taken beyond its original intent. There's a good chance I'll win the next round ... at the cost of a few thousand dollars of legal fees. If not, it will take about 10 months for the foreclosure process to run its course to get his deadbeat ass out. VERY BAD!
But, that said, I've been making a decent living off real estate investment for the past several years, after starting about $10,000 in debt without a good job. Nothing but a lot of credit cards and a good credit rating to start.
But I've made 2 other very big mistakes, in addition to the bad deal mentioned above:
Big Mistake #1) Having deals take too long to realize the profits.
The main thing I'd advise is not to have a lot of your own money sunk into any one deal for a long time until you have at least $100,000 in some combination of readily available credit and/or money in the bank. Working capital is the fuel that runs the engine. Without it, your program will be choked off.
How do you find the money to do deals without sinking your own money into them? Find "hard-money" lenders who will lend on property based on its after-repair potential, and will fund the purchase, closing costs, and rehab costs. The best deals are generally properties that need a lot of work.
Big Mistake #2) Moving into a house that has turned out too expensive, in an area where the values have stagnated.
Live well below your means. If your regular expenses are too high -- especially non-appreciating assets, such as cars -- you could get eaten up by them. At least I've not pissed away money on expensive cars.
So that's my $0.02 from hard-learned experience and missed opportunity to GET RICH, as opposed to just making a living.
Ubermensch
Don Juan
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Another thing ...
If you buy a property worth $100,000 for $90,000, you're NOT making $10,000 -- unless you SIMULTANEOUSLY find a buyer to whom you can assign the deal for $10,000, which is such a ridiculous scenario words cannot desribe it.
In a real-world deal such as that, costs will totally eat you up, and chances are you'll LOSE money over the time it takes to turn the deal, which is *typically* no less than 4 months.
You're likely to incur over $10,000 of closing costs, carrying costs (payments, taxes, insurance, etc.), transfer taxes, Seller's closing costs, possibly a realtor's commission, etc. ad nauseum.
On the other hand, you'll have much better odds of buying a house for $30,000 that has an after-repair value of $100,000 and needs $30,000 of work, and selling the house very quickly for $40,000 -- which is the most any investor should pay for such a house, due to miscellaneous costs that are likely to total about $15,000 over the life of the deal.
Cool thing is that it's easier to find the latter kind of house (the fixer-upper that can be bought for $30,000) than the move-in condition $100,000 house for $90,000.
If you buy a property worth $100,000 for $90,000, you're NOT making $10,000 -- unless you SIMULTANEOUSLY find a buyer to whom you can assign the deal for $10,000, which is such a ridiculous scenario words cannot desribe it.
In a real-world deal such as that, costs will totally eat you up, and chances are you'll LOSE money over the time it takes to turn the deal, which is *typically* no less than 4 months.
You're likely to incur over $10,000 of closing costs, carrying costs (payments, taxes, insurance, etc.), transfer taxes, Seller's closing costs, possibly a realtor's commission, etc. ad nauseum.
On the other hand, you'll have much better odds of buying a house for $30,000 that has an after-repair value of $100,000 and needs $30,000 of work, and selling the house very quickly for $40,000 -- which is the most any investor should pay for such a house, due to miscellaneous costs that are likely to total about $15,000 over the life of the deal.
Cool thing is that it's easier to find the latter kind of house (the fixer-upper that can be bought for $30,000) than the move-in condition $100,000 house for $90,000.
I would hope that it's safe. That's where all of your private credit info goes to get processed.
I wouldn't sign up for the subscription service, just get the one time thing. You would be better off ordering the three for one deal to see what is on your other reports as well.
EVERYWHERE! Do a search.
So you aren't talking about real estate? Of course you still have to use the property as collateral. You are looking for a business loan. That's different.
We are refinancing seven properties right now using no verify loans. Some of the appraisals were done today.
In my case I had to pay about 1/2% over the going rate. Every lender is different. Don't worry about interest to the point that it prevents you from taking advantage of a good investment...interest is only one factor. I don't care if you have to pay 15%, if the deal is good enough it will justify it.
Re: Real Estate is great, BUT ...
This is the problem I face as we speak. I have a business that has about $225,000 of borrowing power maxed out on it. I'm tapped as far as the ability to get more unsecured credit.
Luckily the business started to become profitable as of the last couple of months. The latest numbers project a profit of over $20k for the month, maybe more. So I'm not exactly complaining about the money being tied up at the moment.
We usually pay cash, do the improvements, then take out a mortgage on the increased value. You get much better terms on a refi, and this is considered one.
I would like to hear more on this.
Sounds nearly identical to my situation. Those credit cards are an indespensible part of my tool chest.
Thats why whenever you pickup real estate you should avoid the down payment like the plague.
This is the problem I face as we speak. I have a business that has about $225,000 of borrowing power maxed out on it. I'm tapped as far as the ability to get more unsecured credit.
Luckily the business started to become profitable as of the last couple of months. The latest numbers project a profit of over $20k for the month, maybe more. So I'm not exactly complaining about the money being tied up at the moment.
Never done it that way, you have any more info?
We usually pay cash, do the improvements, then take out a mortgage on the increased value. You get much better terms on a refi, and this is considered one.
I'm the KING of living below my means! I got in a little too deep having to live off credit cards when I opened my business six years ago, but I'm all caught up now.
Re: Another thing ...
The whole idea is to get it and hold it to be able to realize the profit sometime in the future.
You must not have read the whole thread. The $10k is only equity, and if you hold the property for awhile it will put you ahead of the game. i wasn't talking about turning the property.
The whole idea is to get it and hold it to be able to realize the profit sometime in the future.
Well, I'm just rolling back into the real estate game, so we shall see if what you say is true. Also, some markets are different than others.
ok so I paid my $12 on equifax and it tells me absolutely nothing that I already do not know. Nowhere does it tell me my score (you mentioned having a score of over 700 and you can get certain loans). All it tells me is what loans I have taken out and my credit card info and spending limits which I already know.
Edit - Found it, this is good stuff!
Edit - Found it, this is good stuff!
Last edited:
diplomatic_lies
Master Don Juan
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I can't get into real estate because, well, I don't think $10K is enough to buy a house. And no bank will lend me the other $190K (the cheapest house in a suburb where prices rise is around AUD$200K).
Hmm, I tried again today, without luck. Do those lenders have special names? I told them I have no assets or income, and I need $5000 loan.
Hmm, I tried again today, without luck. Do those lenders have special names? I told them I have no assets or income, and I need $5000 loan.
Ubermensch
Don Juan
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STR8UP, info for you
Do a web search on "equitable mortgage lease option foreclosure" or something along those lines.
The so-called "equitable mortage" is the most ridiculous judicially-sanctioned bullsh1t in the entire real estate game.
What it involves is a judge arbitrarily ruling a lease/option a mortgage retroactively, thereby, essentially giving the property to the deadbeat and forcing the landlord to foreclose, which takes about 10 months and thousands in legal fees.
CREEPY!
My advice is to NEVER sell on a lease/option without having your documents drafted by an attorney who is VERY FAMILIAR with this nonsense.
Two things are necessary in the documents:
1) Under no circumstances should there be any mention of an option in the text of the lease.
2) The Option must include language that states in no uncertain terms that it is not a mortgatge of any type, equitable or otherwise.
Even so, you still might lose in the first round, especially if it's a local court with a strong anti-landlord bias, but you would almost be certain to do better in the next round.
The only sure way to avoid this pitfall if you consider selling a property back to someone you bought it from is to have them move out, *then* buy it back.
Nontheless, I advise avoiding such deals altogether. If the courts think it's better to just throw 'em out than to give 'em a chance to buy the property back, then by all means, throw 'em out!
I'll be wringing my hands with glee when that deadbeat is tossed to the curb, be it by eviction (if I win the next round) or foreclosure (if not).
As it is, I stand a very good chance in the next round, because there was no agreement on the option terms. Just a reference to an option agreement in the lease, with nothing else to back it up. No "meeting of the minds"; hence, no contract. Even an "oral contract" needs to have this most basic element of any contract. If the lower court would have even LISTENED to my side of the story, they'd have seen it clearly as day.
Do a web search on "equitable mortgage lease option foreclosure" or something along those lines.
The so-called "equitable mortage" is the most ridiculous judicially-sanctioned bullsh1t in the entire real estate game.
What it involves is a judge arbitrarily ruling a lease/option a mortgage retroactively, thereby, essentially giving the property to the deadbeat and forcing the landlord to foreclose, which takes about 10 months and thousands in legal fees.
CREEPY!
My advice is to NEVER sell on a lease/option without having your documents drafted by an attorney who is VERY FAMILIAR with this nonsense.
Two things are necessary in the documents:
1) Under no circumstances should there be any mention of an option in the text of the lease.
2) The Option must include language that states in no uncertain terms that it is not a mortgatge of any type, equitable or otherwise.
Even so, you still might lose in the first round, especially if it's a local court with a strong anti-landlord bias, but you would almost be certain to do better in the next round.
The only sure way to avoid this pitfall if you consider selling a property back to someone you bought it from is to have them move out, *then* buy it back.
Nontheless, I advise avoiding such deals altogether. If the courts think it's better to just throw 'em out than to give 'em a chance to buy the property back, then by all means, throw 'em out!
I'll be wringing my hands with glee when that deadbeat is tossed to the curb, be it by eviction (if I win the next round) or foreclosure (if not).
As it is, I stand a very good chance in the next round, because there was no agreement on the option terms. Just a reference to an option agreement in the lease, with nothing else to back it up. No "meeting of the minds"; hence, no contract. Even an "oral contract" needs to have this most basic element of any contract. If the lower court would have even LISTENED to my side of the story, they'd have seen it clearly as day.
Ubermensch
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More info
The lenders who finance based on the characteristics of the deal are called "hard money" lenders.
It is a misconception that they'll finance all the cost of a deal, every step of the way. They *may* if it's a good enough deal. Say, for example, a property you can get for $20,000 that requires $15,000 of work tops, and would have a current renovated market value of $70,000, all estimates being *conservative*. THEN a typical lender of that sort might lend a total of $50,000, of which about $5300 ( ~= $1800 + 7% of the loan amount) is taken out as "closing costs", and $15,000 is held back for repairs, to be doled out as repairs are verified by their inspector (less a fairly small fee -- $150 or so -- to pay the inspector for each inspection). Then you can get about $25,200 lent to you at closing ( = 65% of $70k less closing costs and repair estaimate), which puts $5,200 in your pocket straight off.
Rates are very, very high of course. Generally 15-18%, with a loan term of about 12-18 months before the entire loan becomes due. Expensive, but well worth it if you find good enough deals, which, again, tend to be houses that need a lot of work. Hence, the "hard money" designation.
One needs to find a really good deal to do it, but it *is* do-able. Get involved in local real estate investor's organizations in your area to make connections. That's how I found out about all this.
The lenders who finance based on the characteristics of the deal are called "hard money" lenders.
It is a misconception that they'll finance all the cost of a deal, every step of the way. They *may* if it's a good enough deal. Say, for example, a property you can get for $20,000 that requires $15,000 of work tops, and would have a current renovated market value of $70,000, all estimates being *conservative*. THEN a typical lender of that sort might lend a total of $50,000, of which about $5300 ( ~= $1800 + 7% of the loan amount) is taken out as "closing costs", and $15,000 is held back for repairs, to be doled out as repairs are verified by their inspector (less a fairly small fee -- $150 or so -- to pay the inspector for each inspection). Then you can get about $25,200 lent to you at closing ( = 65% of $70k less closing costs and repair estaimate), which puts $5,200 in your pocket straight off.
Rates are very, very high of course. Generally 15-18%, with a loan term of about 12-18 months before the entire loan becomes due. Expensive, but well worth it if you find good enough deals, which, again, tend to be houses that need a lot of work. Hence, the "hard money" designation.
One needs to find a really good deal to do it, but it *is* do-able. Get involved in local real estate investor's organizations in your area to make connections. That's how I found out about all this.
Ubermensch
Don Juan
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I think the credit score site is:
www.myfico.com
or some such.
Do a search on FICO scores.
I hate 'em myself. Went from an A+ borrower to an A-/B+ borrower just like that, because the scoring cut the underwriter's common sense straight out of the picture.
There's a big difference between being maxed-out buying investment property and being maxed-out by blowing your money at the mall, but the FICO scores don't make such a distinction!
www.myfico.com
or some such.
Do a search on FICO scores.
I hate 'em myself. Went from an A+ borrower to an A-/B+ borrower just like that, because the scoring cut the underwriter's common sense straight out of the picture.
There's a big difference between being maxed-out buying investment property and being maxed-out by blowing your money at the mall, but the FICO scores don't make such a distinction!
Hey Uber, I appreciate the info. I am more into buying and holding right now. I use cash to purchase the property, do the improvements, then refi under the new higher value for 100% or more than i have into the deal.
About credit scores....I was thinking the same thing about how the score really doesn't look at the big picture.
Being judged on your score you are being lumped into the same category as your consumer debt ridden neighbor. Doesn't matter you net worth or the fact that all the stuff you bought on credit is gaining value, banks need to see that precious debt-income ratio. And most consumers follow it believing that is what they can afford. You and I know better.
The good thing is that lender are coming around lately realizing that there are plenty of people who don't fit their mold that would be great borrowers anyways. Pretty much ANYONE can get a mortgage nowadays with the no income verify loans, low down programs and such.
About credit scores....I was thinking the same thing about how the score really doesn't look at the big picture.
Being judged on your score you are being lumped into the same category as your consumer debt ridden neighbor. Doesn't matter you net worth or the fact that all the stuff you bought on credit is gaining value, banks need to see that precious debt-income ratio. And most consumers follow it believing that is what they can afford. You and I know better.
The good thing is that lender are coming around lately realizing that there are plenty of people who don't fit their mold that would be great borrowers anyways. Pretty much ANYONE can get a mortgage nowadays with the no income verify loans, low down programs and such.
thissucks003
Senior Don Juan
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Thanks Str8up for sharing the information. I am definitely interested in learning more about real estate. If there are any other books you recommend to a newbie in this arena, please post. I could use the help.
Thanks,
TS
Thanks,
TS
Ubermensch
Don Juan
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Buying and holding
That *used to be* my strategy STR8UP, but as of late I've been unable to find any lenders with reasonable fees and LTVs who would touch a cash-out refi until I've owned the property at least 1 year.
Good strategy, if you can afford to carry the property and rehab costs until you can get your cash out refi.
Prior to 2000 I could get 80-85% of the generously appraised value with under $2000 of closing costs (0 points), within 5 or 6 months of purchasing the property (technically 6 month seasoning, but they cut a bit of slack).
Then, all of a sudden, seasoning periods for cash-out light doc borrowers went to 1 year, LTVs went down, and my strategy was sh1tcanned totally.
So now flips and wholesaling are what I have to do. And lots of them, to get through the current squeeze.
But I *may* have found a conventional lender who can get me cash out with less seasoning (6 months, perhaps less) based upon 2 years of bank statements and decent scores. Sounds too good to be true, so I'm beyond skeptical, but not too far beyond to give it a shot. If the loan officer has is facts straight, this will be *killer*.
Feel free to email me at Ubermensch17@aol.com for updates. I'll let you know the lender is if it flies, so you can find a mortgage broker in your area who handles them too.
That *used to be* my strategy STR8UP, but as of late I've been unable to find any lenders with reasonable fees and LTVs who would touch a cash-out refi until I've owned the property at least 1 year.
Good strategy, if you can afford to carry the property and rehab costs until you can get your cash out refi.
Prior to 2000 I could get 80-85% of the generously appraised value with under $2000 of closing costs (0 points), within 5 or 6 months of purchasing the property (technically 6 month seasoning, but they cut a bit of slack).
Then, all of a sudden, seasoning periods for cash-out light doc borrowers went to 1 year, LTVs went down, and my strategy was sh1tcanned totally.
So now flips and wholesaling are what I have to do. And lots of them, to get through the current squeeze.
But I *may* have found a conventional lender who can get me cash out with less seasoning (6 months, perhaps less) based upon 2 years of bank statements and decent scores. Sounds too good to be true, so I'm beyond skeptical, but not too far beyond to give it a shot. If the loan officer has is facts straight, this will be *killer*.
Feel free to email me at Ubermensch17@aol.com for updates. I'll let you know the lender is if it flies, so you can find a mortgage broker in your area who handles them too.
Russ Whitney really helped me. He thinks along the same lines I do. Looks like he has a newer book that I need to order. Make sure you read Rich Dad too.
You should probably order his home study course of one by Carleton Sheets. Robert Allen may have something as well....I've read some of his stuff and he knows what's up.
Now get out there, read up, and post the details of your first deal!
Komodo
Master Don Juan
Fact:More millionaires are made in real estate than any other job.
Fact:You don´t have to have a degree to make money.
Fact:I could be makind about 10,000.00 a month if I had some capital.
I bet on games actually I invest in games.The stock markets are so unpredictable.You want some free cash chekout Matthew Lesko´s book on getting grants at www.lesko.com. .George Bush used grants to help buy the Texas Rangers and Donald Trump got grants to start his empire.I hope I helped in some way.
Fact:You don´t have to have a degree to make money.
Fact:I could be makind about 10,000.00 a month if I had some capital.
I bet on games actually I invest in games.The stock markets are so unpredictable.You want some free cash chekout Matthew Lesko´s book on getting grants at www.lesko.com. .George Bush used grants to help buy the Texas Rangers and Donald Trump got grants to start his empire.I hope I helped in some way.