All Forum Posts by: Emily Sulliban

Thanks Sharon, very informative.

Thanks Elisha:)
The thing is, not much has changed since I applied for those other cards except for the fact that I've been getting paid over the table instead of under.
I can see how that counts, but I only work part-time, and my "worth" to my company is 8something K annually, even though I've already made over half of that in less than 5 months. That, and the fact that I'm now a student and have had some bills under my name that haven't been paid late ever.

I'm nervous to apply for anything else, I don't want to rack up any more hard inquiries with no payoff.

How do I get these inquiries removed from my credit report?

Well, I'm a newbie and I don't have any investments yet, but this is what I've learned so far about loans:
If you're looking to purchase houses that have equity on them and you have no credit, you would typically try to find a hard cash lender. These lenders mostly look at how safe your investment is financially instead of things like how much credit you have etc.
The thing about hard cash loans is that they are more for quick in-and-out investments as hard cash lenders charge high interest rates (15%-18% I've heard.)
There are hard cash lenders who accomodate more long-term investors(lower interest), but they require a downpayment.
Since you're planning to buy and hold and you don't have a downpayment, a hard cash lender isn't ideal for you.

Basically, if you want to purchase a property that you plan to rent out, you need capital. These repairs and maintenance that can come about could range anywhere from a doorknob being loose to the heater completely breaking right before winter. Even if you have your old job back, would it be enough to cover these big repairs that need to be fixed ASAP? You can say "the furnace looks good, etc", but really, what would you do if it went out? You'd be screwed. Chances are you'd have to hold off on repairing it til you got some money, and meanwhile your tenants may be getting too cold and may break the lease and you're stuck paying vacancy costs on top of everything.
You have to do your due diligence and not rush into an investment, especially since you don't have any cash reserves. You need to find out exactly what you'll be paying each month, and you need to have ample room for unexpected costs.

All I know is that you're probably going to have to go for a traditional type of loan, and I'm pretty sure you need to have recent, solid job history in order for them to feel like investing in you is a safe bet. Maybe I'm wrong.

Good luck, whatever you do.

Thanks Jane:)

From what I remember, they were for stupid things- cashiers trying to sign me up for their store credit cards while I was in a checkout line (why would you ask a kid that anyways?), the credit card applications that come in the mail, etc. I was never warned that hard inquiries affect your credit, I was young.. ugh. Sort of unethical if you ask me.

Anyways, they are removable? How would I go about getting them removed? And if I can't remove them, are my chances for any type of future financing really that bad?

Thanks again.

When I was younger, before I knew that hard credit inquiries had any affect on credit -before I even knew that you couldn't get credits cards without having any credit score, I applied for a few things and now I have 5 or 6 hard credit inquiries on my report. I don't even remember for applying for 5 or 6 things, but they're there on my credit report. To my understanding, 5 or 6 hard inquiries aren't good.

The thing is, I have no credit report other than these hard inquiries. I have no credit score- no credit built and no credit lost. The only bills I have ever had are my phone bill, Netflix bill, and an identification protector bill... none of which are/were ever paid late.

Im wondering: When I do start to build credit, will these hard inquiries affect my credit score? If so, to what extent?

Thanks!
-Emily

Thanks everyone for taking the time to reply to this thread.
My understanding is this:
The "50% Rule" should only be used as a simple formula to weed out properties when browsing through listings looking for buy-and-holds before doing due diligence in order to save the investor some time. Sometimes, in some areas and for some properties, the "50% Rule" isn't applicable.
If you are looking to purchase a buy-and-hold property, you need to have some cash reserves -unless you are for some reason very lucky- because eventually you'll run into unaccounted-for costs, such as vacancy costs and large repairs.
Rent minus PITI doesn't equal cash flow, as there are more costs associated with owning a rental property than PITI alone. Due diligence will prove this.

I'm going to keep reading up on buy-and-hold strategies, but since I don't have adequate cash reserves to successfully maintain a rental property at this point in time, I'm going to start look into wholesaling more.

Thanks again.

Would you rent your house out to a potential tenant who is getting their old job back next week?

Thanks for taking the time to reply Rich and Mike. I now understand that the 50% Rule is not a rule.

Thanks Bryan. My bad if my question was in any way offensive to anyone..

Thanks Marc, that's what I was looking to hear. Not trying to start an argument. Just trying to learn.
And thanks Jon, your answer had a lot of good information. Also, I meant "rule" as in it's solid, unchanging.