Flip Tip Summary
As real estate investors, it’s easy to take the ball off of monitoring your credit and making sure you stay safe. Erik Gantz of AceBusinessFunding.com joins us to share a tip on how maintaining a good credit profile will help you run a more profitable business and help avoid sticky situations.
Flip Tip Transcript:
Mike: Hey, it’s Mike Hambright from FlipNerd.com and we have a quick Expert Tip to share with you from Erik Gantz of acebusinessfunding.com, who’s going to tell us about how to better understand the importance of your credit as a real estate investor. This Expert Tip is sponsored by RealtyMogul.com, B2R Finance and acebusinessfunding.com. Erik: Day in and day out, what we do is we review credit reports and we look at people that are interested in getting funding. And it blows my mind how often people are just not aware of what’s going on with their credit situation. We have a lot of people that come to us thinking that their credit is great and it actually for the most part is. But there are some blemishes on there that are preventing them from being able to qualify for, not just our funding program, but for other types of financing that could really help them out in the end. So the tip that I want to impart is, as a real estate investor specifically, having good credit is an incredible tool, it’s an incredible asset that really cannot be taken for granted. And so, I would encourage everybody to, have some sort of credit monitoring service and just pay that 20, 30 bucks a month to make sure that there is no funky collections or liens and things like that, that are popping up on your credit.
And make sure that nobody is taking advantage of your credit either, that there is no accounts or anything open without your knowledge because it really becomes a nightmare and you go from being able to qualify for a program and say maybe get 100,000 in funding to nothing. Simply because of a couple of things that were probably preventable had they been resolved proactively. So really understand the importance of credit, what it does for you as far as rate too, when you’re qualifying for mortgages and things like that, your credit is going to determine what kind of a risk you are, therefore what rate you’re paying. So it really does affect your bottom line more than people think.
So don’t just look at it like in terms of “Oh I have to have good credit because that’s what I’m supposed to do.” Look at it from business owner’s perspective and understanding that it’s going to cost me more money instead of limit my financing options if I don’t have the credit. So my tip of the day is to don’t just think you have good credit, know you have good credit and make sure that you stay on top of it. Mike: We’d like to thank Specialized IRA Services, National Real Estate Insurance Group, and VirtualStaffNow.com. Please note, the views and the opinions expressed by the individuals in this program, do not necessarily reflect those of FlipNerd.com or any of its partners, advertisers or affiliates. Please consult professionals before making any investment or tax decisions, as real estate investing can be risky.