Five Ways Private Money For Real Estate Investing Preserves Your Credit

Private Money For Real Estate Investing – 5 Ways It Preserves Your Credit

There are at least five ways that using private money for real estate investing
positively impacts your credit rating and availability. I will outline them here.

1. No “hits” on your credit report. When you use private money, no one will
run a credit report on you, so no credit inquiries will appear on your credit
report. Each time someone runs your credit report, your score is lowered by a
few points. This won’t happen when you use private money for real estate
investing.

2. Private money loans aren’t listed on your credit report. Your business is
private, and should remain that way. When you use private money for real
estate investing, the loans aren’t listed on your credit report, so no one will
ever see them, and no one will ever know that you borrowed money. To the
world, it will appear you paid cash for the property

3. Using private money for real estate investing keeps your credit free for
other uses. Because the loans don’t appear on your credit report, your debt-to-
income ratio is not impacted by private money loans. Your credit remains
available for other uses such as cars, education, etc..

4. Private money decisions are based on relationships, collateral, and
investing performance, not your credit record. Even if your past credit record
is bruised, your ability to obtain private money for real estate investing is not
hampered. If you can build relationships with potential lenders, and prove your
ability to make money, and demonstrate that their investment will be secured
by real estate, your ability to borrow will be unaffected by your credit rating.

5. You will have access to unlimited credit. Because private money for real
estate investing never affects your credit rating or your debt-to-income ratio,
your access to money will be unlimited. The more credit you use, the deeper
your relationships will go, and the more money will become available.

You can see that using private money for real estate investing gives you many
advantages, and enables you to protect and even improve your credit standing.