|BAd Credit, NO CASH -- END of the world? no way!
Can you buy real estate and get wealthy despite having ‘No,’ ‘Marginal’ or even ‘Bad,’ Credit?
How about compounding the problem by having no cash either?
The answer is a resounding "Yes": but only if you have lots of other stuff:
drive, determination, sincerity, maturity some modicum of sales ability and a burning
desire to achieve. If you are missing any of these qualities, you chances of success
are minimized proportionately with each missing element.
Without disrespect to those who have sacrificed, scrimped, and saved to maintain perfect
credit, I'd like to say that I couldn’t express the degree of respect I have for them and
their achievement (and no small degree of jealousy). However, I have never been blessed
with a lot of money and perfect credit at the same time. Throughout the many phases of
my financial development, I have had both…just not simultaneously. Nevertheless, even
without an abundance of cash and/or credit, I have managed to acquire a few million dollars
worth real estate, and absolutely none of it has been acquired with, or because of, credit
(or cash). And now that both attributes are greatly improved, I still prefer to acquire
property without a cent out of pocket and without a mortgage loan and with any monthly
payments (they’re FREE that way).
For anyone who has damaged his or her credit, reestablishing it is necessary, to be sure.
However, don't forget that one's not "using" their credit (the American Stoic approach)
is far worse than one's not having any…and many of tend to do alright without it.
In my own case, I filed a business BK in 1989, and gave away and spent everything I had
ever owned in my life (everything) in order to pay off my creditors. It took a while,
but I did it, and I didn't suffer much in the process. However, within a month of having
gone through the BK ordeal, I acquired a beautiful $520,000 home without a penny out of
pocket and without the tiniest need for credit. I even gave the seller, a Mr. Gil Burrell
of Granada Hills, California; now of S.D. Ca. (for the benefit of J.T. Reed if he’s checking)
a full credit report (it was 4 feet long and horrible). I also gave Mr. Burrell all the data
re. my bankruptcy. He didn’t care…I got the property solely based upon my sales ability, my
demeanor, a plausible explanation for the BK and bad credit; and because of the sincerity that
I portrayed and my offer to provide my plan for correcting the problems. Credit was NOT an
Since that time we have continued to do reasonably well in acquiring a modest amount of
other real estate by the same means...and wholly without credit, and with very little if
any cash (usually none).
Without ANY apparent "credit worthiness," I have managed to acquire credit cards
(secured and unsecured), and to financed several automobiles. Over the years, I have felt
little pain because of the absence of credit; and as a matter of fact, I'm sure my credit
restrictions following the BK allowed me to avoid some temptations and maybe some mistakes I
might have had to endure otherwise..
The point? One should do everything in his or her power to get their credit back in order:
but in the meantime, never let its absence negatively interfere with, or affect, your
investment pursuits. You don't need cash OR credit to be a successful real estate
investor…assuming you know how, and assuming you have a good source for information, education
Following--in the order of their overall importance--are the 12 tools you need in the No
Down, No New Loan, real estate investing business.
- Dissatisfaction with the status quo
- An honest need for increased abundance
- A burning desire to achieve
- Tenacity: the ability to stick-to-it, no matter what
- Resiliency: the ability to shrug off a failure and move on with undiminished zeal
- Selling skills: Acquired and/or natural sales ability (the ability to listen and think
at the same time, while not talking until its necessary)
- A professional and business-like demeanor
- A good business background or sense (…or a partner with same)
- A solid understanding of Real Estate and Real Estate Finance
- Good Credit (or not)
- Plenty of available cash (or not)
Without at least the first five in the above list, you are destined for failure in the business.
With #1 through #5, along with any one of #6 through #12, your chances of success are almost assured.
With all of #1 through #9, you’re success is unavoidable.
With all of #1 through #10, abundant wealth is already yours and you need only reach out for
it. You are truly on top of the world.
With all twelve…you OWN the world and everything in it.
Quick Start Success Pack by Bill Gatten
Bill Gatten, www.landtrust.net
is an accomplished Real Estate Investor, Author, Lecturer and
Sales Trainer. With over 40 years experience in banking, equipment
financing and leasing, and real estate investing, Bill is considered among
the top Creative Real Estate trainers in the U.S. today. His book, No Down!
No New Loan! is now in its second printing. A new book for investors is
due out in 2002: 'Making it BIG in Creative Real Estate...for the Cash,
Credit, Income and Experience Challenged.'
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