Do you know your credit score? Do you care? As a real estate investor, you might want to know. Large real estate profits come about as a result of leverage. You put as little of your own money down as possible, and you use other people’s money (OPM) – either the bank’s or other investor’s – to purchase property. That way, the return on your money is much higher.
OPM comes at a cost, which is reflected in the interest rate a bank or investor will charge. The less risk they see in their investment, the lower the interest rate.
Your credit score is one way the bank or investor perceives their risk. So it’s important to know your score.
A great credit score will keep your costs down and your profits up when you take out loans. Can you still succeed in real estate with a low credit score? Sure. But it’s always best to have as many options as possible…
JP Moses
is a real estate investor in Memphis, TN, with experience ranging from land lording to note buying, rehabbing, and wholesaling. However, wholesaling is the area that he enjoys most and where he bring the most experience and expertise to his students.