This isn’t to say they can’t get a loan; it means that they may fall in the category of "sub par" pricing for their loan. Instead of paying the low, low rate you see advertised everywhere, they will pay a point or two more. Do you realize that fewer then 10% of people qualify at any given time for those perfect "A" Paper Qualifying loans? A lot of investors and home-buyers alike don’t realize that your credit is graded like a report card.While it’s easy to get loans with perfect credit, what if it’s not so good? It’s all about FICO scores nowadays, and while you don’t necessarily need it for this business, having good credit goes a long way on personal integrity.

Become Accountable for Yourself

You need to get on top of your finances. I don’t mean that you need to have every account current tomorrow. You just need to start by being accountable. You can’t expect help from the universe if you are a dirt-bag loser, and don’t make any attempt to pay your bills on time. I am not saying my credit has always been perfect. I experienced a time 10 years ago where I lost my house in foreclosure, and I got behind on a few bills. I cleaned it up, and moved on. It actually turned out to be one of the biggest blessings of my life, because it forced me to learn creative real estate strategies. I had to buy without credit, because mine sucked. One thing to remember about credit problems is …. "This Too Shall Pass"  Eventually, bad credit falls off (after 7 years, or sooner), and you can start over. Get on Top of Your Finances If you have on-going money problems year after year, the solution is deeper than your bills. Remember: it is never about who you owe, it’s about how you are dealing with, and keeping your word on who you owe. There are plenty of credit counseling, and repair tools available to assist you in getting back on top financially.

Regardless of credit issues, you can buy and sell real estate. It is a common mistake that investors make in thinking that their credit matters in this arena. You Don’t Need Credit to do This Business The fact is if you are using your credit to do this business, you are doing it wrong. Qualifying for loans etc., is a sure way to eventually get into trouble, or at the very least get yourself stuck with some rentals that no one wants. A lot of new investors panic when asked for their credit report by the Seller to secure financing or do a lease option. I flat out refuse to give my report to anyone. Frankly, if they are asking about your credit, you don’t have a motivated Seller, in my opinion. You will typically get the request from an agent or attorney representing the Seller. I always ask for credit reports, and get them, when I am selling, but I never give out mine when I buy. In response to Sellers asking for a copy of my credit report, I explain to them that as an investor, I would be happy to give them a résumé with references, but I don’t give out my credit report because your FICO score gets lowered by a few points every time your report is pulled. I buy a lot of property, and if I let everyone pull my report that I did business with, I would have a negative score. This makes sense to business-minded people. It’s all about your posture. If I am sheepish and lack confidence, people may ask. But if I am in control, I can rattle off solutions to their problems, and keep control. To be honest, it really doesn’t come up that often.