My call with a finance person...

Howdy, just wanted to share the short version of my call with a mortgage person:

I told her what I wanted and where. she asked for my ss#. I told her I didn’t want my credit pulled, but knew the fico. I gave it to her, and told her I wanted to get an idea of rates and what I was looking at with my score - low 600s.

Her first response: why is it so low? Threw me off a bit. So, I told her. Then she said, I would be looking at ‘high’ rates. … I thought double digits! She said 8.125 or so. I thought, gee, at least that’s below 10.

Then she proceeded to ask how much cash I had for closing costs etc. I told her.

She said I would need more to put into the deal, because my past had shown that I would cover my primary property 1st, and let the rental go. (ouch. 3 lessons - don’t let “friends” rent from you, know the eviction rules, know the eviction rules, oh and know the eviction rules, and have cash reserves.!!)

So, I told her I could use more cash, just didn’t want to.

So… the short version of the story is, I’ve got a lot to learn.

Although my motto has always been, if someone says no, you go to someone else until you get the answer you want on the terms you want, I will sit the real estate biz out for a while, until I have a bit more cash, and more knowledge.

On the upside, I did go out and see a 2/1 each side, duplex for the upper 50s, rentable @ $500 a side. It cash flows, but apparently, it’s not meant to be right now.

I’m going back to the books, graduation is next month, and I’ll catch u all later.

Happy investing. ’

CC

Good story. So sad but good lesson learned. There are other ways to buy property without using your credit or your cash. You must’ve heard of OPM (Other Peoples Money). If the deal is good there will be people out there willing to buy your deal or finance your deal. Assignment of contract or Assignment of Option, L/O purchase, Subject To, Owner financing, seller carryback of the 20% or more, etc. etc.

Here is who I learned from and still learning from:
Larry Goins and Steve Cook - Wholesaling
Wendy Patton and William Bronchick - Lease/Options and Subject To
William Bronchick - Owner Financing, Installment Land Contracts, Asset Protection full library.
Napoleon Hill - Change your thinking

Good Luck and I hope to read more of your posts. Happy posts please… :slight_smile: