Category: Loan Agreements

By Syd Z. Nohcud

The first step to building wealth through real estate investing is to buy your own home. Instead of making rent payments that pay off someone else’s property, it makes more sense to make mortgage payments to pay off your own.

This way you not only are not only investing your payments in a property, you are able to take advantage of capital gains.

As you increase equity in your home, you will be able to use it to help you purchase other properties.

After purchasing your own home, the next most common step in real estate property investing is to buy a rental property. If you buy well and get a good rental return with minimal outgoings you will not only take advantage of capital gains but the rent you receive will go along way to paying your mortgage.

As you gain equity in your property and pay down your mortgage, you will be in a position to purchase yet another property and repeat the process.

You need to be careful to minimize the risk by buying properties at below their market value, preferably when market prices have dropped.

This is because real estate prices increase over time and if you are prepared to hold onto property, you will always make money in the long term.

Unless you are wealthy, you will need to take out a mortgage to buy real estate property. A mortgage loan uses property as security for a loan on the property.

A mortgage allows you to purchase real estate with a down payment and repayment terms so that you do not have to pay the full value of the property immediately.

If you default on the payments, foreclosure requires a judicial proceeding which provides the borrower with some protection.

Real estate has historically offered investors far better returns than most other investment options.

With most banks prepared to finance ninety percent of the value of property values, you only require a deposit of ten percent and the ability to make the monthly payments to repay the loan.

Therefore, if you buy conservatively you place yourself in an ideal position to make excellent profits. In fact, real estate has traditionally returned substantially more than average stock market investments over time.

As well as building long term wealth, property investment can offer tax advantages under certain circumstances.

Get advice from your accountant as to whether your circumstances would allow you to claim tax benefits.

Another advantage of real estate investing over stock market investing is that the prices are flexible. With real estate you can make an offer that is lower (sometimes substantially so) than the asking price.

Stock market prices are set and do not allow you any room to move. As a result, you can sometimes get excellent property buys when the seller needs to sell quickly and is prepared to accept your offer.

All in all, investing in real estate is a wise choice that offers excellent long term returns and sometimes even substantial short term gains.

You can begin small with a ten percent deposit on an affordable property and gradually accumulate investments in your property portfolio.

Real estate investment is generally a safe pathway to personal wealth and retirement funding as long as you behave conservatively and wisely.

About the Author: Sell Your Winnipeg HouseSubstantial Incomes and WealthRealty Tax Consultant

Source: isnare.com

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There are three steps to improving your future credit worthiness. You need to do these simultaneously to get the most benefit and for the quickest results.

1. Pay your monthly bills on time – this is important because it will start to create a record of on-time payments on your credit history. Your payment history is roughly 30% of your overall FICO rating.

You can also benefit from opening new lines of credit such as a personal loan or unsecured credit card if you use it responsibly. This will help to build your history of responsible borrowing.

2. Settle outstanding collections debts – if you’re being contacted by collection agencies you need to address the situation. The first step to take is to ask for debt validation, this will require the collection agency to legally prove they own your debt.

It is not uncommon for these agencies to not be able to provide this evidence, if this this is the result then you do not have to pay the debt. However if they are able to show they own your account then you need to settle with them.

You should settle for only a fraction of the balance because the balance they are trying to collect has been inflated. The original lender was charging you a default high interest rate and fees. It is also legal and common practice for debt collectors to add a feed to your balance. Lastly with the collection agency you settle this account with they have only paid pennies on the dollar for your account. For example an account worth $3000 may have been sold for only $30 to a collection agency.

In exchange for your payment you need to have the agency agree to stop reporting the account to the credit bureaus. If you neglect to do this then paying off the debt will not improve your credit. Once your make your settlement you will then dispute the item with the bureaus who will not be able to verify it with the debt collectors.

3. Dispute inaccurate or questionable items on your credit report – you can do this by filing a dispute letter and sending it to each major credit bureau or hire a credit repair service to do it for you. By law the credit bureaus must investigate your dispute. In an investigation the bureaus will contact the collection agency or lender and ask them to verify the account, the dates, and the balance.

If the account is not verified in the bureaus must remove it from your credit report. This is in accordance with the Fair Credit Reporting Act passed by Congress in 1970. Experts estimate that approximately 80% of investigations result in the removal of an item from your report.

The hard part is getting the bureaus to investigate. Unfortunately there is no financial motive for them to correct inaccurate information that they collect about you. Instead this is only an expense for the bureaus because they sell your information to businesses and lenders.

Further, Congress has continued to update the Fair Credit Reporting Act and has now given the power to the bureaus to first deem a dispute valid before they investigate it. This is in no way shape or form in the consumer’s best interest and clearly the bureaus have a financial motive not to investigate disputes. They are private businesses that have annual sales in the billions of dollars and we believe they influenced Congress through lobbyists.

You don’t have to just live with bad credit you can have it removed. It will require you to remain persistent and continuously educate yourself about consumer credit laws or hire a professional credit service to work for you, but it can be done.

Article Source: sooperarticles.com/finance-articles/credit-counseling-articles/three-easy-steps-fix-your-bad-credit-score-767681.html

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For more about fixing your bad credit score visit us or to learn more about professional credit repair company.Author: Jerimiah Zanderbreck