Hello All, newbe2 REI

[djprowa]

Greeting from Washington state. Love all the posts.
After years of working the never ending J.ust O.ver B.roke, :SM145:
I've finally realized my passion is in R.E. :clap:
Especially investing.
First Question... in the bible there's the ten commandments :SM014:
Most J.O.B.'s have "ten" rules, safety rules, etc.
What would be ten things to know, or to do when going to apply
for a loan? :rolleyes:

Have a great Day!
Douglas

[dealmaker]

Hmmmm, it's been awhile since I"ve asked anyone to trust me with their (or their investor's money) but here goes.

1. Have a reason for the loan. As far as I'm concerned that is A HOUSE. No other reason to borrow money, ever.

2. Don't have too much credit "available" to you. If you have 3 major credit cards, each with a $8,000 limit, and 3 store cards, each with a $3,000 limit, you've reduced the amount that I'll lend you by about $33,000. There's no valid reason IMO for anyone to have more than 2 major credit cards, each with about a $4,000 limit. Don't get store cards, don't get gas company cards.

3. Make sure you have a "stake" in what you want the lender to lend on. If you're buying a house with a fair market value (FMV) of $100,000, make sure that you're putting up $20,000 of YOUR OWN MONEY. That doesn't mean you're taking a $15,000 second with $5,000 of your own. It doesn't mean you're "borrowing" $20,000 from Mom and Dad.

4. Make sure you can show the lender a SURE, STEADY, CONTINUOUS stream of income from which his loan is likely to be repaid.

5. Don't have any car loans or lease payments. Car loans are a way of insuring that you'll always be broke and beholden to someone else. For goodness sake, you're borrowing money, THAT MEANS YOU'RE PAYING BACK WITH HIGHER COST DOLLARS, something that will have a LOWER VALUE in the future.

6. Make sure you've paid off EVERYONE who ever lent you TEN CENTS. Did you ever go to the emergency room and get into a hassle with your insurance carrier and the bill never got paid? PAY IT NOW. Do you have student loans from college or trade school? Get them paid off now! I don't care how low the interest rate is, PAY IT OFF, NOW. Do you have any child support issues from a previous marriage or relationship. Pay them off, don't be WELFARE CHEAT.

7-10. Heck I don't think you need any more from me. If you comply with all of this, I'D LEND YOU MONEY! Heck if you can do the above you'll be in the top 1% of all Americans.

OK, OK, I thought of 2 more.

7. Read "The Millionaire Next Door", it's probably in your library (free) or in a used book store for a dollar or two. Read it about 5 times and take its lessons to heart.

8. Read Dave Ramsey's, "Financial Peace", same thing on sources. He does get a bit zealous in the religion thing but that's his Christianity coming through. He means well and I know several Buddhists, Jews and Muslims who have taken his advice without being offended by the religious aspects. Again, read it until you can take it to heart.

Mainly these authors will tell you the same things I've been telling you. Do as we say and you'll be great. And best of all you won't have any problems borrowing money, because YOU WON'T NEED TO.

dealmaker

[Aldo]

Excellent info above and I could probably add an item to two to consider, but I won't. Instead I've chosen to to address an issue that's pretty much overlooked here, yet is of vital importance. No! Make that critical importance. Investing in real estate is one of the wisest decisions you will have made in your life. The issue people often overlook is that, when you close the purchase of a property, you have actually purchased a property AND a new hat. You will own a property and, by default, will be required to wear a Landlord hat. In reality, 'being' a landlord is much more difficult than 'becoming' a landlord. With that said (assuming you already have Dan's book), you need to buy a book titled "Landlording" written by Leigh Robinson. His book is often referred to as the Landlord's Bible and I concur.

[djprowa]

I don't know how many books I've read on REI, and recently started on landlording books, including the Landlording by Leigh Robinson which I just picked up from the library yesterday. thats fast :rockon:
But I'll check on th others

The financial end is my problem.
been out of work about 3 years, :SM118:
2 kids, and 1 other adult on disability, wife should be.
and were on section 8. oh, and a car on life support.

I know I have a big hurdle to cross financially
But I'm tired of thinking about doing this,
I need, and want to do this, last decade already