Distinguishing Features of E-Commerce Out-of-state vendors engaged in e-commerce do not have an obligation to collect sales taxes if traditional rem...
Strong credit saves real estate investors money on mortgage finance costs. A good credit score, along with the other credit and mortgage qualifications, means that investors can pay lower fees for financing, such as points and interest charges. Also, good credit scores help you avoid garbage fees associated with nonprime loans.
However, the real money making difference for real estate investors comes into play in the return on investment (ROI). When you build up your credit score over 720, you open the way to finance multiple investment properties using other people's money. Today, you can get investment property financing for as little as 5% down when you meet the qualifying credit requirements. This means that your ROI on your cash investment for the down payment can be significant.
For example, let's take a home I found in Bradenton, Florida. Built in 1999, this 3 bedroom, 2 bathroom, 1600 square foot home looks like a great buy for only $219,000. Assume that the property could be purchased for $215,000. With strong credit, the 5% down cash investment of $10,750 buys into the appreciation value of $215,000. A lower credit score would mean that you'd have to put 10%-25% down or more, which lowers your return on investment. You would need $21,500-$53,750 down to buy into the same $215,000 appreciation investment. In this case, your ROI for your cash outlay would decrease significantly.
Of course, other factors like carrying costs affect your investment capabilities. The point: get your credit score over 720 so that when you're ready to buy investment property, you get the best return on your money.
Jeanette Fisher, author of Credit Help! Get the Credit You Need to Buy Real Estate, interior design, and real estate books, has researched mortgage credit qualifications besides credit scores to finance multiple investment properties. Jeanette teaches college courses on Design Psychology and professional real estate investing seminars. For free "Credit Tips for Mortgage Financing" report, visit the Real Estate Credit Help Center at http://recredithelp.com/
Online Payments Make It Easy For Your Customers To Buy In the last column we discussed the process of credit card enabling your brick-and-mortar business. I pointed out that research has shown that accepting credit...
Planning Ahead with Your Finances This article emphasis how planning, not actual income can help you be on your way to financial freedom.
Stress and Time Management Stress and Time Management: Stress costs the US billions of dollars in absenteeism, health care, etc. In this article, I discuss these logistics as well is who...
Conquering Stress and Depression with Exercise Anxiety and depression are among the most common afflictions facing the human race. Add alcohol and drug abuse, and you are talking about problems that face clo...
Do Low Carbohydrate Diets Lead to Weight Loss Success? So your neighbor, office mate, best friend, whoever just lost 10 pounds in only two weeks following the latest in high protein low carbohydrate diets. And now y...
How Home-Based Business Entrepreneurs Think To really succeed with your home-based business, you need to change your way of thinking first. It's all in the mind! Only 20% of success lies in the right stra...
Gurgle Gurgle Caught in a whirlpool and being sucked under. No life vest or other device to save you. Gurgle, gurgle. Down you go.
Read This Article If You Are Frustrated Have you recently had someone listen to a problem of yours, a situation which made you angry or a complaint and then they say; "I understand your frustrations, ...
Nutritional Supplement - The Good Food, Bad Food Myth Will common sense ever prevail? We've all seen stories on the news about a new miracle food. "Eat more carrots and your eyesight will improve," or "Eating raspb...
Is Stress Imaginary? This article tells the story of a Gulf War veteran who experienced a "fight or flight" reaction on his wedding day. His story shows that stress is physical reac...
Career Success: Get Ahead of the Crowd Do you want to know how to jump-start your professional career? Or, are you already in the trenches trying to be a high performer and wanting to make a quantum...
Is Sponsorship Right for My Company? How do you know that sponsorship is right for your company? Is there a way to determine if underwriting aspects of a trade show will help your bottom line? Ab...
Tips For Less Holiday Stress Holiday Stress? Some Tips For Having Less We all dream of having wonderful holidays. We start each day full of the spirit of the season. We look at the lovely f...
Preparing for Rhinoplasty Surgery You've done your research, had several consultations, selected your surgeon and scheduled the surgery. Now what? Following some prudent "rhinoplasty before and ...
Teenage Dating vs. Courtship (part 2 of 2) What exactly is courtship? Courtship is young men and women seeking each other out for the purpose of finding a spouse. It is a sexually abstinent friendship th...
Print this page