Banks/Building Credit - Posted by Scott

Posted by Brian B on September 18, 2000 at 19:50:48:

Hello Ed,
I would like to take your last statement as a big complement and say thank you.
I am a man of many talents mostly due to the fact of going through some very tough RE deals myself and life teaches us well if we want to listen. I am in the electrical business but am slowly trying to move full time into the TD buy and sell investing.
I have attended a $7,000 3 day intensive back in the mid 80’s with Robert Allen the self proclaimed guru of the no down techniques. Before that I sold my first house for $140K but the buyers could only come up with $100K and were unable to make any larger payments than that for the $100K but really loved our house so I carried a $40K note for 2 years at 8% with no payments and all due and payable in 2 years. It sold the house, threw the Lawyer for a loop and made me and the buyer very happy. They refied 1 1/2 years later and paid me. This was in '86. I am presently trying to sell my own home creatively. I love this CREO-GROUP really. It inspires me and many others I am sure.
Thank you again.

Banks/Building Credit - Posted by Scott

Posted by Scott on September 18, 2000 at 16:16:54:

I remember in my readings the way to build credit by depositing money in a bank and borrowing against it and depositing in another bank and doing the same, someone please give me a resource to do this the right way.

Thanks and kudos to the new forum!!!


Re: Banks/Building Credit - Posted by Brian B

Posted by Brian B on September 18, 2000 at 18:35:46:

Hi Scot,
I may as well put in my 2 cents worth.
I believe you can place funds on deposit in a local bank for a term of say 1 year.
Then you would ask the bank to make you a personal loan for the same amount or less using that deposited amount as colateral. The length of loan and deposit would need to be the same. There should be no problem with this but the bank agent might not understand why you want to borrow your own money.
Anyway once you have done this you should make sure you pay back timely and at around 1 1/2 to 2 times the minimum payment on the loan you get. After about three months your credit will be looking better as long as the rest of your financial transactions are ok.
Borrowing money then paying it back on time builds trust and that is what credit is=trust.
A car loan is probably a quicker way to go.
Hope this helped.

Re: Banks/Building Credit - Posted by ED Garcia

Posted by ED Garcia on September 18, 2000 at 19:16:04:


your informantion was clean and to the point. Are you in the lending business? Or just a knowledgeable investor?

Ed Garcia