Using a Loan Servicing Company to Build Credit. Good Idea?

[Ben Vonderwahl]

Hello Everyone,

I am currently in the process of purchasing about 4 properties using debt secured with promissory notes (lender is my father and grandmother). I've resorted to this strategy after being turned down by traditional lenders due to my lack of credit history (current score 702). I'm considering having these loans handled by a loan servicing company that reports to the credit bureaus in order to build credit and get my score into a place where I can refinance at lower rates (family rate is 10% APR). However the properties still cash flow exceptionally well at 10%. So, if the loan servicer reports these notes to the credit bureaus will these loans count as 4 out of the 10 possible loans I can get with traditional financing? If so, I'd rather just pay the 10% and use my 10 "soft loans" for other properties. In other words what are the pros and cons to having my family loans reported to the credit bureaus?

Thanks,

Ben