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Maximizing
Your Credit Score
Why
is credit score so important?
In today's mainstream consumer and mortgage lending sectors,
credit score is the Gold Card"
to obtaining the best possible loan terms, pricing and interest rates.
Those who maintain a perfect rating can even fund their entire Real
Estate Investment Portfolio with little or no capital. Imagine being
able to buy 25 properties over the next 36 months with no down payment!
With excellent credit, buying properties in volume using our 100% Loan
Products is customary. The traditional Real Estate Investor would take
over a decade creating that type of wealth utilizing traditional means.
Why
is it so important to begin optimizing your credit score today?
Real Estate Investing is opportunity driven. You never know when the
next good deal or a bundle of deals will present itself. It could
happen next month or it may happen tomorrow.
It is absolutely necessary to be ready to pull the trigger at a moments
notice. Those who are not "ready" at a
moments
notice, find themselves scrambling to put transactions together,
or
simply
end
up
passing profitable deals
over
to other Real Estate Investors.
In
our teachings,
you will not only understand, but you will become excited
about
religiously
following
the principals of acquisition preparation. You will always be ready to
secure a transaction at a
moments
notice, without concern for loan funding. The most
successful Residential Real Estate Investors
have implemented a "Production Line" format for locating, securing and
funding their properties. Having your Financing in place is the
foundation behind such a production line. With proper "Guided"
preparation, you will be spending your time locating and securing
opportunity buys and not worrying about financing. Our staff will not
only assist you in accelerating your scores to the highest level, but as
important, we will guide you in maintaining optimum income and asset
levels, so you can capitalize on opportunities as they come.
To
Progressive and the Real Estate Investment Lending world, your score is
where it all starts. While we take on Real Estate Investor clients with
credit scores as low as 650, with one-on-one coaching, 680 is where we
expect
it
to be within short order. This is a very realistic goal for those
willing to commit themselves. Ultimately, 750+ is where one needs to be
in time.
Contrary to what you may have been told or read elsewhere, at this level
of the game, the following is a scale of how the Investment Property
Lending Sector defines your credit.
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750 800 |
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Excellent Credit -
100% Financing
Available |
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720 749 |
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Very Good Credit, however, you will need to begin taking
precautionary measures -
100% Financing
Available |
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680 719 |
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Good Credit -
100% Financing
Available |
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650 679 |
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Fair Credit -
100% Financing
Available with a 660 Score |
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600 649 |
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Marginal / Poor Credit |
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550 599 |
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Bad Credit |
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525 549 |
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Really Bad Credit |
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500 524 |
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Feel very lucky to get a loan |
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Below 500
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Requires extreme credit cleansing, a complete overhaul of
one's debt & savings management and eventually in time, good payment
history and credit usage will result in growth to your score. |
In
the 17 years I've been in the Lending and Real Estate Investment
Advisory and Acquisition Business, I've never met anyone who maintained
what I considered "Impeccable Credit". Just because you make your
payments on time, and every creditor is sending you credit offers does
NOT mean you have good or excellent credit. There is always room to
improve your overall credit rating, regardless if you maintain a 600 or
800 score.
One of the
very first steps in the Progressive-Client evaluation process is to
"Study" your credit and
provide a "Punch" list of things to do, to initially improve your credit. A
minimum of 680 is required to remain eligible for our "Top" tier 100%
lending loan program, and 720 qualifies you for "Optimum" rates &
pricing. 700 to 720
will
also qualify
for our Stated income options. At the lowest tier,
a
score as low as 660 will qualify for 100% financing.
If you've
read this far, you are probably an Investor who is taking this business
seriously and understands that financial success doesn't come by
investing in one or two "home run hits". Instead, financial success is
spawned by turning bread-n-butter deals into volume. Volume means you
need to be turning several properties. Turning properties means you
need to never be in a position where you are forced to begin putting
money down (Whether you have it or not) to buy properties. When that
happens, volume dwindles if not totally ceases. Your business shuts
its doors when you can no longer stock your store
with products to sell. While the reality seems harsh, it should not be
taken lightly.........further solidifying the importance of Credit and
DTR Enhancement.
Please
click on the links below for specific
steps
to begin the
enhancement process.
Steps to
Enhance your Credit, Debt to Income Ratio and
Reserves
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