Bad Credit - Posted by Tina

Posted by Greg Dennis on July 29, 2001 at 17:25:52:

Could I please get a copy of that e-mail as well? I would greatly appreciate it.

Bad Credit - Posted by Tina

Posted by Tina on July 02, 2001 at 14:45:20:

Hi…I am writing because I am charged up and want to be a real estate investor. I just read a post that stated if you have (i can’t remember which) bad or no credit then you have no chance at starting up in this business. Is this true? Carleton Sheets said that anyone could start with no money down and no credit or bad credit. Has this happened to anyone?

Re: Bad Credit…Sue’s story - Posted by Ray B

Posted by Ray B on July 10, 2001 at 24:25:44:

Sue’s story============
It was the mid 1980’s when Sue came to our office to fill out an application for an apartment. She was turned down due to slow, not bad, but slow credit. The fact she had three children and a dog didn’t help. Anyway, I happened to start chatting with her. Found out she lived in one side of a double, in an old but respectable part of the city, and was a single mother.
She complained bitterly that she really didn’t want to move. She said her heating system wasn’t working and her landlord lived out of state and refused to return her calls. The cool nights of fall were only a few weeks away, Sue was concerned for her children.
Always being alert for a “deal”, I asked some questions. Seemed her “landlord” was a busy professional. His wife had inherited the property and he was looking after it for her. This had all the elements of a “deal”. A busy husband, burdened looking after his wife’s property, located hundreds of miles away. They should be a text book “Don’t Wanter!”
I arranged to meet Sue at her home. I fully intended to buy this property myself if it was anything at all. When I arrived it was not hard to pick Sue’s house out of the others on the street. One can usually tell the “rentals” from the owner occupied houses. This one cried out, “I am a rental unit”, There were more weeds than grass in the yard. One side of the property was vacant and it’s porch railing was missing. A front window was broken and boarded over. However, I could see that the roof had a few more years of life. The side walls were straight and true, and the foundation looked good. I figured a little repair, clean up and some paint would make this a nice looking property. As I went to the front door I already knew what I was going to offer for it. All I needed from Sue was the name and address of the “landlord”.

Imagine my surprise when Sue opened the door and behind her I saw a beautifully decorated interior. I am not going to say I can remember every thing that went to make up this 'decorators show case” home. I will say I still remember how impressed I was with her use of colors, green plants, and wall hangings. All skillfully arranged to best show her professionally looking re-finished and recovered old furnishings. All the windows were draped over, ceiling to floor, except a “mural window” she had painted on the blank wall between her unit and the one next door. It was a mountain scene. It looked real. Had a 3D effect. (it was much later I learned how she obtained this 3D effect. First she painted the background of mountains and sky directly onto the wall. Then, she made two wood frames slightly larger than the wall painting. Over the frames she stretched clear plastic. She then painted a middle waterfall area on one of the plastics. Then spaced that frame about a half inch off the wall. On the second screen she painted the foreground of trees, grass and wild flowers. This frame was then spaced another half inch off the first frame, giving the 3D effect)
Now I understood why she hated to think of moving. I was so taken with this young ladies decorating talent that I forgot about buying the house. Instead I made her an offer.
Three years ago I had purchased a 32 unit three story walk up. The lobby was dark and unappealing. The halls and stairs were no better. It never rented well. However, at the time I was making good money on commissions and was only interested in the depreciation write off. Anyway, I had estimates for repainting of over $5000 and I would have to spend a lot of time overseeing the job. So I offered to pay Sue $2500 if she would paint a mural on the two side lobby walls. Also select the color combinations for the stair wells and halls. Then, oversee two of my painters to get the job done. I also told her that if she wanted, I could show her how she could buy the double. I really wasn’t interested any more. Her talent could make me more money than the double.

Now, back to the point of writing this story. For you who have not taken the time to read and really consider Mr Starr’s post of June 20, I am taking the liberty of CCP part of it, and adding it right here. (Suggest you take the time to read the full text.)

========Part of Mr. Ron Starr’s “post’=========

[snip] To invest in real estate, you do have to bring something to the table. Call these your resources. Different people may have a differ roster of resources. But you have to have several resources to be successful. Lack of resources equal failure.

Resources could include: cash, good credit, lines of credit, credit cards. Equity in property. Other assets such as cars, boats, planes, collections. A steady income. Time available to work at it. Knowledge. Experience. Skills. Creativity. Being bold. Being Cautious. Being analytical. Having good people skills. Having lots of contact with people who have resources you lack. Having lots of people who know and trust you. Havings lots of contacts who know about real estate. [end snip]

[snip] Persistence. This is the single most important factor in becoming a success at anything. It is the most important factor in becoming a successful investor. It is the factor that determines your success as a real estate investor.
Getting out and doing it. You can study for years and learn a lot. But, until you go and start doing it, there will be no success possible [end snip]
Now back to the story.
It took a couple months to complete the redecorating of my “walk up”. It turned out better than I expected. During that time I had no trouble getting the owner of Sue’s double to agree to sell it to her with $1000 down and carrying back the financing. As soon as Sue heard I had verbal approval of her deal she went to work repainting and repairing the vacant side of the double. I advised her against it, Nevertheless, the day we closed her deal, she had it ready and a renter waiting to move in.
During the following year Sue did several projects of me. She also did work for a couple other Brokers. She picked up two small rental houses from one of my Broker friends. He had taken them as part of his commission on an apartment complex deal. He sold them on contract to Sue to get rid of them. During this time she was studying and “picking our brains” at every opportunity…!
Before the end of the second year, I started taking Sue’s double to our real estate exchange meetings. After a couple “mini offers” (Quickly written, non binding offers, made during the meeting) I found a deal that fit. Her double was exchanged for a 16 unit building in the near down town area.

Now to shorten this, I will tell you that in the early 90’s a lot of thing were happening. The real estate industry was having problems, I was busy solving my share. I lost track of Sue, but heard she was doing deals on her own. She had learned well and didn’t need me any longer.
Then, about two years ago I met Sue’s X husband in a store. . He told me she was doing fine. Had about 60 units. Two of the children went to college and the third was helping her run her real estate business.
Now, stop here and think about what Sue “brought to the table.” It certainly was not money, or great credit . Also, remember she wasn’t even interested in real estate until she was shown how to buy her first property. (Anyone can learn that in their first seminar or from a good book) Once she knew she had a talent that people like me would pay for, she positioned herself close to the “action” by becoming friends with several brokers. Most of all she studied and was persistent. Now why would we want to help her? It’s a fact that most small broker/investors need lots of help. We are continuously looking for people that will be reliable, do us a good job at a fair price. If we can trade some of our services for their skills, so much the better. So when we find such people, we try to treat them right. If Sue had been a carpenter. a good all around “handy man”, or a good painter, it could have worked out the same. When I look back, the one thing I know Sue had, beside the decorating talent that most woman have, was PERSISTENCE. Did Sue use me and a couple of my friends? Sure she did! Did we use her? You bet we did, and got more than our moneys worth! That’s the kind of bargains that make this business interesting. Yes, it can be done Tina! Ray B.

Re: Bad Credit - Posted by Ray

Posted by Ray on July 03, 2001 at 08:13:50:

Mr Sheets is right! , as the old saying goes, “Where there is a will, there’s a way”. However having little or no credit makes it hard. Anyone that preaches that it’s easy is misleading you.

I have taken a fancy to a remark made by one of the other “poster”. Something to the effect that if you want to play in this game, you have to “bring SOMETHING to the table.” (ck.Mr. Starr’s post 6/20) In this post the list of “SOMETHINGS” is long. Few of them had anything to do with money or credit. Most had to do with a persons talent, skills or just old fashion persistence. Reading that list you should realized every one has “SOMETHING” to bring to the table!" You just have to RECOGNIZE YOUR CERTAIN SOMETHING . Then study and apply yourself. Most failures occur, not because a certain study course was no good, but because “student” couldn’t identities the part that was right for “THEIR SOMETHING”… then really apply it.

By email, am sending you a story of
a young lady clients who had no money, no credit, three kids, a dog.,and a certain “SOMETHING” that made her a wealthy lady. Look for it in a day or two. Hope it helps. Remember, only you can really answer your question. All I can do is tell you it can be done…! Good luck…Ray

Re: Bad Credit - Posted by Zidzi

Posted by Zidzi on July 09, 2001 at 22:21:38:

I liked your message and would love to read the story.

Re: Bad Credit - Posted by Andy T.

Posted by Andy T. on July 08, 2001 at 24:17:17:

I would also like a copy of that story, thank you so much!

Re: Bad Credit - Posted by Kitty

Posted by Kitty on July 06, 2001 at 22:51:19:

Please send me the email as well. Thanks

Re: Bad Credit - Posted by Charlene Pye

Posted by Charlene Pye on July 06, 2001 at 19:30:34:

I’d appreciate a copy of that story, too!



Re: Bad Credit - Posted by ken

Posted by ken on July 06, 2001 at 14:46:42:

please send me the email of the story of the young lady with no money, no credit etc… thanks, ken