i want to investing in real estate by foreclosure and tax sale, so i wonder do you need good credit to do that
Welcome aboard!! I was wondering when I was going to begin getting some feedback for the answers I wrote. YOU ARE THE FIRST- for me! I’m flattered! Thank you very much! Just to let you know:
I am not an accountant, financial advisor or attorney. I just try to do the best job I can, “while not giving away the store“. Let’s get down to business
You don‘t necessarily need good credit as much as you need a substantial line of credit. If you do business with a bank or credit union for an extended period of time, you may be able to get a substantial credit line without any or very few problem.
If you are one of those people who “bounces” checks left and right and doesn’t know what the right hand is doing from when the left hand is doing it (((((this was written to confuse))))), you may have some challenges getting your line of credit.
When you go in to make application, you have to be as honest as possible with the bank’s or lender’s officer. These are some of the questions each lender will ask you:
1] Your complete legal name.
2] Your Social Security Number
3] How much you presently earn – gross
4] Your present street address [sorry - no post office box numbers will be accepted]
5] How long you lived there.
6] The purpose of the line of credit.
7] How much you need the line of credit for. ALWAYS ask for the line of credit for MORE than you need it for.
8] How long you need the money for. ALWAYS ask for the line of credit for LONGER than you need it for.
There may be some other questions such as assets and liabilities, but for the most part its routine.
IF you don’t have any of the above, the road to approval will get steeper and more slippery. The line of credit may be harder to get. You may have to get partners or go to a “hard money lender”. This is ANOTHER subject for another time.
As you are sitting there, the loan officer will run a credit report on you. With legitimate lenders, this happens ALL the time. Its S.O.P. Standard Operational Procedure. When that report is downloaded and printed, the conversation will go in the direction of what the credit report tells the bank officer.
For the sake of discussion, I’ll pretend it comes back without any problems. THIS IS AN EXAMPLE. “DON‘T HOLD MY FEET TO THE FIRE” ON ANY OF MY EXAMPLES OR SCENARIOS: You’re looking for a line of credit of $750K, BUT you ask for $900K. AND its granted. With this money available to you, you know what you have to do, don’t you?
You have to find at least one property to begin getting a return on your investment. By the way, in the beginning, one is all you should have. “You have to learn to crawl before you walk and walk before you run and run before you sprint.”
VTY,
Ron B.