I’m just about to close a note deal where the Buyer’s/Payor’s credit score is below 600. Why can I even work with this thing? Because there was 10% down, there is almost 3 years of seasoning, and we’re only buying a partial, which keeps the risk acceptably low.
What if the Payors had credit scores over 700? Ka-ching . . .
The note holder/seller would be pocketing several thousand dollars more if they had been helping their Payors improve their credit scores over the last several months before trying to sell their note.
Lots of people have credit scores that have really taken a beating in the last couple of years. That won’t stop them from buying property with owner financing, but with better credit scores, they could grealy expand their opportunities for buying because prospective sellers would have notes they would feel good about holding or selling.
The whole credit scoring system is a just a game, but if you don’t know the rules, you can’t possibly hope to win, and it will cost you money and lost opportunities.
I’ve recently become friends with a guy who is making a profound difference by helping people quickly and dramatically improve their credit scores, even if they have foreclosures, short sales or bankruptcies on their record. His name is Phil Tirone, and I’ve asked him to be a guest blogger.
My guess is that he’ll get something to me next week, so stay tuned. If you fit in any of these categories, you REALLY need to pay attention to his message:
- buyers (even if you’re buying with seller financing, a higher credit score will dramatically increase the numbers and types of properties you can buy)
- sellers who are thinking of carrying paper for a buyer(s) with poor credit
- note holders who are preparing to sell all or part of their note
In the meantime, feel free to check him out at 7 Steps to a 720 Credit Score. He’s written a book you’ll really want to get a hold of.
- Get Help Putting Your Owner Financing Deal Together
- I Want to Sell My Note, Are You a Note Buyer?
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