It’s All About The Score

27 02 2013

So before I start I have a few disclaimers. First regardless of the title of this post it is not ALL about the score. However it does play a large part in it. Second I am not a loan officer, accountant, attorney, and whom ever else would be licensed to give advice in such matters. The comments and statements below are solely my opinion. Nothing more.

Credit Score

Credit is a big factor in real estate. Whether you are looking to rent or buy, your credit will be pulled and scrutinized. I find when it comes to credit everyone can be grouped into a few simple categories.

Credit? What is that? The “I don’t have any and wouldn’t know where to start.”

Credit smedit! Who needs it. The “I just don’t care what happens or how I look on paper.”

Credit, you mean opportunities. The “I will meticulously maintain my credit.”

CREDIT, OH MY HECK HELP!! The “I fell on rough times and can’t even imagine getting out of the hole I am in.”

So there isn’t much I can say to help out the two middle categories. “Smedit” wouldn’t even consider beginning to listen and “Opportunities” probably knows more than me and doesn’t need to listen to anything I would have to say.

With the other two the process will be quite the same. There is, as with most thing, several things you can do. Many choices and avenues along the path of good credit. I am going to talk about just one. The one I find the most simple and the one you can go out and do this very minute. Get a department store credit card. Sears, Kohl’s, JC Penney, etc.The credit limit will vary. I don’t pretend to know why one person can have 5000 and another 500. I would hazard a guess and say income. It doesn’t matter. That amount, for this scenario, is insignificant. What you need to do next is USE IT. I find there is a reluctance. If you have no credit it is a big step, if you have low credit there is a fear of digging the hole deeper. Part of the process is showing you are responsible with your money. So if you have the cash to buy something use your card instead and set the cash aside to pay it off when the bill comes. If you don’t have the cash, don’t use the card. That is all there is to it.

It is always good to talk to a loan officer to see where you are and what you need to do to move forward. Let me know if you want to take that first step. I would be happy to supply a few names.

Rental Property Investment

24 05 2011

Just some food for thought here.

There are 23 active condo listing in southern PG county between $16,000-$45,000. Don’t believe me; take a look for yourselves. Now some of them do need work. Lets say $5000. Plus closing cost. Lets estimate high and say $3000. So for roughly $53,000 cash you could be the owner of a monthly rental income, and that is if you purchase one at the $45k. These properties rent from $900 for a single bedroom and up to $1600 for three bedrooms.

Brake down:

$53,000.00 initial investment

$500.00 yearly condo fee (owner always pays condo fee)

$500.00 yearly home warranty (always a good idea in case something breaks)

$1600.00 (equal to first mo. rent) Listing fee


$55,600.00 Total investment

If you rent it for $1600 a month it will take you around 3 years to get back your investment if you manage it yourself. If you have a management co. do it, take 10% off each month. At $1440.00 around three and a half years.

After that you have a steady  income of the rent amount.