My credit score is around 670. Is this a decent score to get started in landlording? What is the best way to improve it?
increase your available credit is one way. If you use less then 50% of your available credit such as credit cards or small loans… this will raise your score.
A 670 is good enough to get you started. It also depends on other parameters like income, debt (besides the mortgage), reserves (investments)
Ok, I was a little off on my credit score. It’s 653 according to freecreditreport.com. As far as income and reserves, I just got a decent job so I’m working on both.
You can buy investment properties with 0% down (although you would have to pay money up front for fees and points) with your credit score. In other words, you can and should start investing in property today.
However, raising your score above 680 and then above 720 will lower your financing costs TREMENDOUSLY.
I was able to raise my own credit score 50 points in one week. I’m not exaggerating, and I didn’t cheat anyone to get that jump. The increased score (and that alone) enabled me to buy a condo in Huntington Beach. Now I’m helping others to do the same.
For more info, see my website and I’ll show you how!
If you would like a free consultation on what to do and how to get started I’d be more than happy to speak with you.
matjone, everyone is right with your score you can find favorable financing.
Make sure you shop around to find the best deal. I am sure that you were instant messaged to death after posting this.
Be careful, do your homework. Find a program that fits your needs. Do not allow someone to talk you into something that you are uncomfortable with.
Be careful about allowing access to your credit report. Do not give your ss# out until you know who you are dealing with.
Just my opinion. Good Luck!
Don’t let your credit score stop you from getting started.
Drive, determination and fairness will get you where you want to go.
Start with your local bank – don’t start with a mortgage broker. Forgive me brokers, but you know I’m right – brokers are selling their product. Once you have exhausted all your bank resources go to a broker, and then shop them around as well. If they can’t help you go to hard-money lenders (who usually want you to have properties under your belt, from my knowledge of that resource, but I am sure you can work it out with them).
Good luck to you.
And, brokers, once again, I mean no offence, but every time I deal with you – you try to sell me a product at a very high cost that I didn’t ask to receive. I get that we are all trying to make money. I’m just giving my best advice. Which leads me to – it’s my 2 cents and that is worth about 2 cents. ;D
I am not taking offense to your statements about brokers. I just want to clarify/correct a few of your statements. 
Start with your local bank -- don't start with a mortgage broker. Forgive me brokers, but you know I'm right -- brokers are selling their product.
This is not necessarily true. I for example have access to over 200 different programs. My client tells me what they want and I attempt to find it. The requested programs are not always available as the clients scenario (credit, ltv, reserves, etc.) dictates what is available and what is not.
And, brokers, once again, I mean no offence, but every time I deal with you -- you try to sell me a product at a very high cost that I didn't ask to receive. I get that we are all trying to make money
You shouldn’t deal with those brokers then. They are not working for you, they are working for themselves.
I cannot understand why people will allow themselves to get taken advantage of and then they make a general insinuation that “all brokers” must be unscrupulous.
You are the client. If you do not like the way that you are being treated, go someplace else.
I too am disappointed with the way some brokers have taken advantage of the situation at hand as it creates the images that you are presenting. The only way that these unprofessional individuals will learn, is to not do business with them. They will either change their methods or close the doors. That is why there are so many broker shops closing the doors.
And that my friends, is the rest of the story.
Sorry! Just wanted to vent a little. ;D
I am not a broker but I deal with mortgage brokers because the ones that understand what I am trying to do are good. I have to agree with Mdhaas. I have found that there are brokers that deal with financing owner occupied residents may not understand what we are trying to do, but one that does will almost always beat a bank. Remember the bank can only sell his bank’s product, while the broker will shop for the product you need.
Also if the financial package does not make you money, don’t take it no matter who brings it to you.
I have to agree w/ mdhaas and Bluemoon06. I have been in the business for a long time and I have dealt with a variety of brokers/lenders. I finally got smart and stuck with one.
Brokers are much better as they have a better variety of program options.
I actually got a loan through my broker with the bank that i have my personal accounts with. The loan officer at the bank could not get it for me because the program was only offered through their wholesale division.
Just my observation. ;D
I have also had much better luck and service from my broker.
Found him after a lot of trial and error.
Bankers seemed to try and make me think that they were the only way to get the job done without getting hijacked on costs.
I knew I would generate many replies from my post. I appreciate your information. Personally, I have had much better luck dealing directly with the local banks. As someone mentioned, I am the client, therefore, whomever I work with, I need them to serve my needs. Since the brokers I’ve dealt with are out for themselves, I find it easier to work directly with the banks and cheaper. On my last refi the quote from the broker: three points vs. one point from the bank (and a half percent lower rate). If the bank will give me the loan, I don’t mind removing the middleman.
Nothing would make me happier than to find a broker who is working for me – our finances are getting more and more creative with each deal I hold onto.
There is no blanket answer and I certainly didn’t mean to intentially insult all brokers. As in every industry – there are good and bad. I think I have used that line for Realtors, Contractors and even Investors now.
Take care all!