Credit - Posted by Jay Young

Posted by Ed Garcia on August 13, 2000 at 19:26:30:


The difference is, Hard Money lenders usually get their funds from the private sector (Private Investors).The paper work or packaging is minimal and they’re usually between 11 and 15% and 5 to 15 points.

Sub-prime loans are packaged and sold to Wall Street through companies such an New Century, BMC Mortgage, WMC Mortgage just to name a few. The costing is 91/2 to 121/2 % and 3 to 5 points.

I put a little bigger spread in the differences in rate and points than I usually do because it can vary in different parts of the country.

Ed Garcia

Credit - Posted by Jay Young

Posted by Jay Young on August 12, 2000 at 22:14:14:

I need some advise about my bud credit.

I always, always pay my bills on time for fitteen years. When someone look at my credit report will see that.

Unfortunally a year ago I had to file for bankruptcy. I paid the bills until last moment.

Is there any way at there to repair this terryble mistake? How can I make any deal if nobody trust me?

Please your advise will be very very appreciated.

Thank you!!!


Re: Credit - Posted by Ed Garcia

Posted by Ed Garcia on August 13, 2000 at 14:31:02:


Yes there is. In most cases when a person has credit problems, they are embarrassed and like an ostrich, they just want to put their head in a hole and hope it goes away.

Jay, that’s not the answer. You have to start immediately, by going out and reestablishing your credit. There are many ways you can accomplish this task.

  1. Go out and buy a small purchase such as a new television or appliance and put down 50%.
  2. , You can deposit 500 dollars in the bank and then borrow 400 dollars, using the 500 dollar pass book as collateral.
  3. You can go to when you get there, check out [Rebuilding Credit], [Repair Credit]. In Repair Credit, you’ll find a Credit Repair Kit which gives you instructions on how to contact the credit beau, as well as some generic letters to send to them to remove derogatory credit.

Jay, I can tell by your posting, that you feel like that ostrich. Don’t let it get you down or discourage you. The lending community is forgiving, within 2 years you can make a come back, with a little thought and work, you can recapture your good credit standing.

Meanwhile, you still can do deals, it will be more costly, which is to be expected.

Here are 8 ways you can do a deal NOW.

  1. Flips
  2. Lease Options
  3. get a 50% Partner or investor with good credit
  4. Seller Carry Back
  5. Hard Money
  6. Sub-prime financing at 70 to 75% LTV depending on your circumstances and what lender you use.
  7. Combination of Seller Carry Back and Hard money
  8. Combination of Seller Carry Back and Sub-prime

This is just a sample of things you can do. DON’T GIVE UP?..

Ed Garcia

Re: Credit - Posted by Laure

Posted by Laure on August 13, 2000 at 05:43:27:

You can get a loan ! Call Ed Garcia when you’re ready. A year past discharge is loanable.

Laure :slight_smile:

Re: Credit - Posted by Doug Pretorius

Posted by Doug Pretorius on August 12, 2000 at 23:36:22:

Your bud credit? Is that some kind of alcohol card? lol :slight_smile: JK!

Sellers don’t care about your credit, and if they do, they probably aren’t the kind of seller you should be talking to.

The people who do care about your credit are the bad, mean, nasty institutional lenders. Who needs them?

Just buy your properties “subject to” or with a lease/option and away you go! No credit or income checks, who cares if you have a bankruptcy? All they want to know is if you can solve their immediate problem!


Re: Credit - Posted by Jay

Posted by Jay on August 14, 2000 at 11:25:17:

Ed, Doug and Laure:

Thank you very much for you kind words. It make me feel a lot better.

I will keep you inform of my progress.

Thanks again for your help!!!


Just out of curiosity… - Posted by Ben (NJ)

Posted by Ben (NJ) on August 13, 2000 at 17:37:25:

what is the difference between hard money and sub-prime
lending? I always thought they were essentially the same thing.