Growing up, I worked at the same shop as my dad, and sometimes he would take me to a place called Henry’s Cafe for lunch. Me and my dad would talk about a lot of different things at these lunches, but one of the big pieces of wisdom I took away from him was actually about my credit.
My dad told me that I always had to take care of my credit because if you don’t have it in this country, you’re nothing. His philosophy was that if you have good credit, you are able to borrow money. You can then use that borrowed money to make more money. It’s a concept that rings true in real estate.
The best way to obtain and grow your wealth is not by your yearly income. The way to build wealth is by obtaining assets. I’m so grateful he gave me that advice growing up. The ability to borrow money to leverage yourself is huge. I did just that in the market we are in right now, back in 2012. I was able to buy three rental properties because I had good credit, enough money saved for a down payment, and I leveraged the property with 20% down. The bank then let me borrow 80% of the purchase price on the property. Those properties have since appreciated in value, and I’ve doubled my money in terms of the homes’ equity.
We can help repair your credit.
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I don’t mind paying taxes, because it means that I can qualify for loans to buy more properties and continue to build my wealth. If you make money in cash or under the table, it’s going to be harder for you to build wealth. Without paying those taxes, nothing will happen to your credit and you likely won’t qualify for a loan to buy a home. If you’re a business owner, make sure to pay those taxes. You’ll be happy you did when you are able to invest your money and build wealth because of it.
If you don’t have such good credit, I know a great credit repair expert I can send you to. If you have any other questions for me or you’re looking to buy or sell a home, give me a call or send me an email. I look forward to hearing from you.