6 great funding ideas for flipping houses even with less than perfect credit

Starting a fix and flip business can be a great way to profit in real estate. It is a high-risk and high-reward venture, though.
Buying and fixing properties to sell can be an expensive and unpredictable process. There are so many costs involved for one. You need to buy the property, renovate, and get permits. Project sponsors also pay broker fees and holding costs if the property isn’t sold right away.
Getting funding is the number one obstacle for investors who are new to flipping houses. Good candidates generally have at least one successful fix and flip under their belt. They also have a credit score of at least 650 and no recent bankruptcies, foreclosures, or tax liens.
If you don’t fall into that category, that’s okay. This post covers a few ways to get funding for a fix and flip, with options for both experienced and inexperienced investors:

1. RealtyShares

Types of projects: debt and equity
Loan term: 3 – 18 months
Rate: as low as 9%
Closing time: 10 days
Loan to cost: up to 85%
RealtyShares, a leading real estate crowdfunding platform, has helped investors finance over 550 projects. Overall, the platform has raised $300 million from 92,000 registered investors. Project sponsors can get financing for their fix and flip projects in as little as 10 days and choose whether they want their financing to be debt or equity.
The online application takes minutes and project sponsors can be pre-qualified in 24 hours. For debt investments, RealtyShares looks for sponsors with a FICO credit score of at least 600, a loan to cost of less than 80%, and an estimated loan to after repair value of less than 65%. Companies in consideration go through a thorough background and credit check before being approved by RealtyShares. Approximately 5% of proposals on the platform are approved for funding.
The next step once you are pre-qualified is to submit documents for underwriting. As part of their service, RealtyShares underwrites, approves, and funds the project. Once the project is funded they manage the investor relations and payouts.
RealtyShares and other real estate crowdfunding platforms offer experienced investors the opportunity to get fast funding for their fix and flip projects. Real estate crowdfunding is possible because of the JOBS Act and is now available in most states across the US. Even so, the majority of fix and flips tend to happen in certain states, according to RealtyShares CEO, Nev Anthwal, quoted in the Attom Data Solutions September 2016 Housing News Report:
“We’re a national platform, but most of our short-term loans are in six or seven states, including California, Texas, Illinois, New Jersey and Florida.” 
This relatively new way of funding real estate investments is fast, affordable, and uses the power of the ‘crowd’. Depending on the platform, project sponsors can raise money from groups of accredited and sometimes unaccredited investors. The platforms act as mediators between sponsors and investors.

2. Hard Money or Private Loans

Types of projects: debt
Loan term: around 12 months, can occasionally extend to 2 – 5 years
Rate: around 10 – 18% with points from 2-6%, depending on the loan terms
Closing time: about a week
Loan to cost: up to 75%
Hard money and private loans are good options for investors who are new to fix and flips or who have tarnished credit. For these investors, the borrower’s credit score is less important. In these cases, collateral can be more important than a FICO score.
Some hard money lenders will provide a higher percentage of financing based on the property’s expected after repair value.
Hard money and private loans are one of the primary forms of financing for first-time fix and flips, especially since they may finance a property in bad shape that a bank would have to turn down for a loan. Hard money and private lenders are typically found online, through word of mouth, or at local real estate meetups.
Networking is important when it comes to creating relationships with hard money and private lenders because they are based on personal relationships and trust. These lenders are also taking on high stakes and they want to earn their expected return.
This is another reason why they usually want investors to put some of their own money into the deal, so that they are sharing the risk.

3. Bank Financing a Fix and Flip

Types of projects: debt
Loan term: can be longer than other funding sources
Rate: approximately 5 – 6%
Closing time: 1 – 3 months
Loan to cost: usually up to 65%
Bank financing is a good option for investors who have about 2 years of proven experience fixing and flipping properties, a great credit score (700+), and existing capital. To qualify for bank financing, investors must have a registered fix and flip business and be willing to put in a down payment.
Bank financing for a fix and flip takes longer to attain but does come with a few benefits. Rather than a lump-sum loan, bank financing usually means opening a line of credit. This is good because borrowers only pay interest on the money they spend rather than the full amount of a loan. The rates are also a lot lower compared to hard money lenders.
When looking to bank finance a fix and flip, make sure that you compare rates and terms at different banks. Going with your personal bank without considering the alternatives means you might miss out on a better deal.
Bank financing for fix and flips can be harder to find because their typically shorter terms mean that banks make less profit.
To improve your chances of fast approval, make sure that you accurately report your income, provide verified income and asset statements, employment history, and provide any other documentations that the bank requests in a timely manner.

4. Online Mortgage Lenders

Types of projects: debt
Loan term: usually longer than other options, 15 – 30 year options for investment properties
Average rate: as low as 3.96%
Closing time: as fast as 30 days
Loan to cost: n/a
Online mortgage lenders like Guaranteed Rate, Lending Tree, and Quicken Loans make it easy for fix and flip investors with a little experience get more funding for their next project.
Unlike real estate crowdfunding, this is more of a traditional mortgage that they manage online rather than a loan that a group of people invests in.
The benefit of online mortgage lenders is the way that they use technology to make the process of applying convenient and automated. For people who want to go with more experienced companies, a lot of traditional lenders are also offering online mortgage services.
Approval from online mortgage lenders takes a little bit longer than a real estate crowdfunding platform, but typically a little bit less long than a bank.
The perk to this type of funding for a fix and flip loan is the significantly lower rate. The downside is that these loans take longer to repay, although some online mortgage lenders offer shorter term options.

5. Home Equity Loan

Types of projects: debt
Loan term: typically, 5 – 15 years
Average rate: 5%
Closing time: 2 – 3 weeks
Loan to cost: n/a
Another option that is available to those looking to fund a fix and flip is a home equity loan. If you have built up equity in your home, you can essentially take out a second mortgage and make monthly payments to get the funding needed to fix and flip one or many properties.
The problem with this method is that your house becomes collateral, which means that you can lose it if you don’t make money on the fix and flip. This option is good for those with a proven track record and a solid plan but it isn’t an option that we recommend for people doing their first fix and flip.
Real estate investors can also take out equity loans on their rental properties to finance more real estate investments. These investments are long term but the rates can be low depending on the terms. A line of credit will be more affordable and more short-term than a refinance loan.

6. Friends and Family

Types of projects: debt or equity
Loan term: typically, 12 to 24 months
Average rate: 6 – 20%
Closing time: 2 – 3 weeks
Loan to cost: up to 65%
Friends and family are other last-resort sources of funding for a fix and flip. This isn’t always a good idea unless the sponsor’s friends and family understand the real estate industry and the risks involved.
Not only are you risking disappointing investors in this situation. You are also risking damaging personal relationships if the investment doesn’t work out.
One perk of this option is that the interest rates set with friends and family are generally lower than other funding options, like hard money lenders. If you do choose to go down this road, make sure that your investors understand the project and the risks. Put the deal in writing so that the terms of the loan are clear to everyone involved.

Conclusion

It is important to prepare and do some research before you seek out funding for a fix and flip. Investors should know about the local real estate market that they plan to invest in. This includes information about the neighborhood and what reliable contractors operate in the area. Lenders are looking for investors with experience and a solid plan, not just good credit.
If you are ready to start your next project, there are many funding options available. Online mortgage lenders and real estate crowdfunding platforms make it easier than ever to get funding for real estate projects. Traditional funding sources can take longer and have higher rates, but they also have benefits for some borrowers.

Greg Hammond We Buy Houses Louisville / Eagle Thirteen Properties

Trying to avoid the flu? Try these tips

 

 

 Fighting the flu

It happens all the time: One family member gets the flu, and before you know it, everyone else has it too. Flu germs can spread even before symptoms appear, and you can infect others up to a week after you first become sick. By practicing a few simple rules at home, you can help keep your family healthy and prevent the flu from spreading.

Get vaccinated

1. Get vaccinated

Health experts say getting vaccinated is the single most important thing you can do to prevent the flu. There are now four main types of seasonal flu vaccine. The Centers for Disease Control and Prevention (CDC) recommends that everyone 6 months and older who hasn’t had a previous bad reaction or doesn’t have egg or mercury allergies get a flu vaccination.
The Food and Drug Administration (FDA) has recommended the specific types of flu shots for the following people:
Standard flu shot: This is recommended for everyone 6 months and older.
Intradermal flu shot: The intradermal flu shot is administered into the skin, rather than the muscle. It uses a smaller needle and less antigen. The FDA recommends it for adults aged 18-64.
High-dose flu shot: Our immune system responses weaken with age. This vaccine may help improve immune response and increase prevention of the flu. A clinical trial of 31,000 older adults reported by the U.S. National Institutes of Health showed approximately 25 percent fewer cases of the flu in those who received the high-dose flu shot, compared to those who had the standard flu shot.
Nasal spray vaccine: There is some debate over the nasal spray vaccine for the 2016-2017 flu season. The CDC recommended against it, saying the nasal spray is less effective than the flu shot. However, it was still approved by the FDA, which says its benefits outweigh any risks. The FDA recommends the vaccine for people aged 2-49.

Are there any side effects from the flu vaccine?

The flu vaccine in any form does not cause the flu virus. However, some people may experience mild symptoms after receiving the flu shot, such as:

• fever
• headache
• chills
• soreness at the injection site

These symptoms are usually mild and go away within one to two days. Talk to your doctor before receiving the vaccine if you’re severely allergic to eggs or mercury, or if you’ve had a negative reaction to a vaccine in the past.
It’s best to schedule your family’s vaccinations in the fall before the start of flu season, preferably in October or November. But it’s never too late to get the flu shot. Flu shots are now administered in many local grocery stores and pharmacies with no appointment required.

Cover coughs

2. Cover coughs and sneezes

Flu germs are believed to spread through droplets from the mouth and nose. Use a tissue to cover your mouth and nose when you cough or sneeze. Make sure to throw the tissue away immediately and wash your hands straight away. If there’s no tissue handy, cough or sneeze into the crook of your elbow.
It can be tough to get kids to practice these habits as well. The Boston Children’s Museum recommends a cute way to turn this into a game for kids: Turn a sock into a “Germ Eating Monster” by cutting off the rounded toe part of the sock and decorating the tube that’s left. Slide the decorated tube onto their arm and have them “feed” the germ-loving monster by coughing into its face.

No touching

3. Avoid touching your eyes, nose, and mouth

According to the CDC, flu germs can live for two to eight hours on hard surfaces. That’s why it’s so easy to pick up flu germs without knowing it. You can get infected if you touch an infected doorknob or light switch and then rub your eyes or bite your nails. Learning to keep your hands away from your face can be tough, especially for children. Remind them often, as well as yourself.

Wash hands

4. Wash your hands often

All hand washing is not equal. For it to be effective, make sure you and your family follow these steps:

1. Run warm water over your hands.
2. Add soap.
3. Scrub for at least 20 seconds.
4. Rinse and dry.

You can stock up on alcohol-based hand sanitizers for areas where sinks aren’t available or when you’re out and about. Store them out of the reach of young children and ensure children have adult supervision when using them. Make sure your hand sanitizers are at least 60 percent alcohol, and remember that they’re not a replacement for washing your hands with soap and warm water — they don’t tackle all germs, and don’t work on visibly dirty hands.
You’ll need to remind kids to wash up:

• each time they use the bathroom
• before they eat
• after they come home from school or a play date

You can print out hand washing reminders to put up by your sinks as visual reminders for children (and forgetful adults). It can also help to set up a hand sanitizer station by your door, as a first line of defense against outside germs.

Keep your distance

5. Limit contact with family members who are ill

If someone in your family does get the flu, take these steps to prevent the flu from spreading:

• Keep the sick person at home.
• Limit close contact between the sick person and other family members as much as you can while they’re contagious. In general, this is up to a week after they show symptoms.
• Change sleeping arrangements, if possible.

You should also avoid sharing the following items from the sick person:

• washcloths
• towels
• dishes
• toys
• utensils

Housecleaning

6. Clean your home

Flu germs and viruses love to lurk on items you touch every day. Here are some hot spots for germs:

• kitchen sponges
• dishcloths
• cutting boards
• home desks
• floors
• sinks
• toilets

Clean and disinfect these hot spots regularly. You can microwave your kitchen sponge for one minute on a high setting to zap germs. Better yet, throw it out.
If someone in your household has the flu, take special care when washing their things. Wash dishes and silverware thoroughly by hand or in the dishwasher. You don’t have to do a sick person’s laundry separately, but try to avoid scooping up an armload of items and holding them close before washing them. Use laundry soap and dry on a hot setting. Always wash your hands immediately after handling dirty laundry.

Healthy habits

7. Practice healthy habits

Don’t forget the power of a healthy lifestyle to fight off sickness. The following tips can go far in keeping your immune system healthy and your family well this flu season.

• Get plenty of sleep.
• Eat well, with lots of vegetables and fruits.
• Drink lots of fluids.
• Exercise regularly.
• Manage your stress.

Takeaway

The takeaway

Vaccination is the single most important thing you can do to keep the flu from spreading. Healthy personal hygiene habits and frequent housecleaning also go a long way to help keep the flu away. If someone in your household does get the flu, keep the person at home, disinfect and clean your home well, and limit close contact with that person whenever possible.

One of the most common New Years Resolutions in America is to make more money. People get sick and tired of being broke after the holidays. They use the New Year as an opportunity for a fresh start. They vow to manage their money better, earn more, and save more. If you want 2018 to be a year of prosperity and wealth, you have to have a plan. You could pledge to work more hours and not spend so much on coffee, but what if you didn’t have to make such significant sacrifices? If you got involved in house flipping in 2018, you wouldn’t have to.

What Exactly Is House Flipping?

If 2018 is your year to get serious flipping houses, you must first have a clear understanding of what it is. It’s not like those addicting home improvement shows. You can’t just find a dilapidated house, break down a wall with a sledgehammer, find a vintage couch at a garage sale and sell the home for 4x what you bought it for. It’s essential to have a realistic idea of how much time and work goes into a successful flip. On average, it takes about 3-6 months to flip a house. In that time, you have to find ways to upgrade the home to make it appealing to sellers without dumping a lot of money into it. Some homes require a full gut job, while others just need a little TLC. Your primary objective is to quickly rehab the house so that it can go on the market and bring you the highest return on investment (ROI)

Rising House Prices = Higher ROIs

The house-flipping trend died down following the housing crisis in 2008. But now, home prices are rising, and homeowners are jumping on the opportunity to make some significant cash. Recent reports have shown that there was a 3% increase in homes flipped last year, reaching a 10-year high. House flipping in the early 2000’s involved people buying a house and then sitting on it waiting for the price to rise. Now, however, house flippers are getting their hands dirty and doing major upgrades to increase the value of the home. This allows them to make more money and sell homes much faster than before. Even if the flip doesn’t work, buyers at least make a little money in the rising equity of the home.

Step 1: Do The Research

Before you jump into your New Years Resolution of making more money, there is some work you need to do. The first rule in House Flipping 101 is read everything you can get your hands on. Educate yourself about flipping houses and listen to podcasts. You could even take an experienced flipper out to lunch and pick their brain! Read articles and blogs about house flipping. The more you know, the more confident you’ll feel when you get started.

Step 2: Find The Right Location

Part of your research should involve finding the right neighborhood for your investment. Find out where people want to live and what kind of houses buyers are looking for in this area. Don’t settle for a sketchy area just because the house seems like it’s a good deal. Buying a home in a less than desirable area will cost you more in the long run. The longer it sits empty because buyers don’t like the neighborhood, the more you’re paying in monthly fees to maintain it. Be familiar with real estate market trends in your area. Don’t assume that the upgrades and marketing strategies that worked for real estate in your hometown of New Jersey will work the same for the South Tampa homes or the Miami investment property that you’re thinking about flipping. Each city, state, and neighborhood has a particular audience, and if you don’t give them what they’re looking for, you’ll waste a lot of time and money.

Step 3: Get Your Finances In Order

Once you know what you want to do, you have to get all of your financial ducks in a row. This means improving your credit score if it’s low and acquiring the cash required for a down payment. This way, once you find the perfect house, you can make an offer right away. Be realistic about how much house you can afford. The less money you put into buying the home, the more you have to spend on upgrades.

Step 4: Work Smarter, Not Harder

2018 could be the year things really change for you financially, and flipping houses could be the key to that success. Here are a few tricks to make 2018 a high performing year:
• Focus on reducing hold times- see how long it takes you to flip your first property and then aim to reduce that time for your next flip. As you gain more experience, you’ll be able to cut down on hold times and save money
• Negotiate Fees- if you really look at all the different little fees you end up paying when flipping houses, you’ll be surprised at how they add up. Negotiate deals with vendors; see what you can do to reduce the fees in aspects such as appraisers, insurance lenders, and contractors.
• Pay really close attention to your taxes- Or hire a professional to do it for you. Novice investors miss out on tens of thousands of dollars every year in real estate related tax breaks and deductions.
• Similar to striving to cut hold times; focus on setting a realistic budget and sticking with it. As you flip more houses, you’ll begin to learn tricks and tips to save money during a renovation. The smarter you can be with your money up front, the more of it will be returned to you after the home is sold.

Step 5: Build A Solid Team

While losing weight and learning to speak a language are new years resolutions that you can do on your own, being successful in real estate is not. You need a strong team of industry professionals to ensure your success. A real estate agent, licensed contractors, an insurance agent and an accountant, are all vital in making sure each flip is done correctly. Start building your team now so that once your offer has been accepted, everyone can get to work.
Starting January 1st, you have 365 days of potential in front of you. Whether you decide to pursue your dream of flipping houses or not, the days are going to come and go. You can either let another year go by where you let fear and uncertainty hold you hostage, or you can jump in, learn as you go, and experience the excitement that makes flipping houses such a draw for investors all over the world. 2018 could be the year you take a chance, do something that makes you nervous, and earn a steady stream of passive income that could change the course of your life. You decide.

Greg Hammond  We Buy Houses Louisville/ Eagle Thirteen Properties

House Flipping Property Acquistion Checklist

As a professional house flipper, one of the big requirements of my business is to scale to the point where — despite only making $15-30K per house — my company is able to sustain a significant annual income. To do this, I focus a lot of energy on creating systems and processes, and documenting those systems and processes so that anyone in the company can execute on them.
One of processes I have in place is the set of tasks required to get from putting a property under contract through due diligence and then through the final purchase of the property. Because the due diligence period for a typical purchase is only 5-10 days, there’s a lot to be accomplished in a small amount of time. If anything in the due diligence process is missed, it’s very easy to overlook key information that may ultimately hurt your project, and your profits. So, having a good process in place is not just about efficiency, it’s also about long-term success.
If you’re planning to do an investment purchase, I would recommend reviewing the Acquisition Checklist below; your list may vary a bit, but for the most part, these are the things you should probably be focused on accomplishing in the days/weeks between contract and closing…

PROPERTY ACQUISITION CHECKLIST

Upon Contract Acceptance

Ensure Access to Property:

• Make Copy of Property Key(s)
• Purchase New Lockbox
• Place Key(s) in Lockbox and Install at Property

If Certified Funds are Required for EM:

• Get Certified Funds for EM from Bank
• Submit Certified Funds to Agent

If Financing the Purchase:

• Send Contract to Loan Officer
• Provide Loan Officer Property Info
• Connect Loan Officer with RE Agent
• Have Loan Officer Schedule Appraisal
• Make sure Loan Officer Knows Anticipated Closing Date

Due Diligence

Inspections:

• Turn On Utilities for Inspection (water, gas, electric)
• Schedule Termite Inspection
• Schedule Property Inspection
• Attend Inspection and Take Notes for “Scope of Work”
• Get Final Inspection Report and Review for “Scope of Work”
• Get Termite Letter/Pest Inspection Report

Contractor Prep:

• Create Scope of Work
• Create Materials List
• Determine Which Contractors Are Needed:
• GC
• HVAC
• Roofer
• Electrician
• Plumber
• Pest/Termite Control
• Painter
• Landscaper
• Carpenter
• Schedule GC Walk-Through(s)
• Get Contractor Quotes

Purchase Decision:

• Perform Final Financial Analysis Using Estimates/Quotes
• Perform Both Flip and Rental Analysis
• Make Go/No-Go Decision on Purchase

Upon Contingency Finalization

Final Purchase Prep:

• Get Closing Date from Lender/Agent
• Arrange Landlord Insurance Policy
• If Financing, Connect Insurance Agent with Loan Officer
• Follow-Up on Appraisal with Lender
• Get Pictures/Video
• Choose a General Contractor
• Choose Sub-Contractors (if no GC)
• Determine Exit Strategy
• Create Rehab Schedule (if no GC)
• Create Final Budget

Prior to Closing

Final Loan and Closing Prep:

• Obtain and Review HUD-1
• Obtain and Review GFE (if financing)
• Ensure Loan is Ready for Closing (if financing)
• Get Certified Funds for Closing
• Determine How to Hold Title
• Get Partnership Agreement Documents Signed (if partnering)

Upon Closing

Day of Closing:

• Get Keys
• Change Property Tax Records to Home Address
• Get GC and Sub Contracts/Docs Signed
• Arrange GC and Sub Start Dates

Greg Hammond Eagle Thirteen Properties/ We Buy Houses Louisville

7 Tips to Quickly Boost Your Credit Score

 

 

       Like it or not, your credit score dictates everything from whether you’re approved for a credit card to what rate you’re offered on a mortgage.
As the economy has recovered from the Great Recession, many Americans have managed to get on better footing, but nearly one-third still have “bad” credit scores (under 600), according to credit.com. If you are one of them, it’s time to give that baby a boost. Here are seven of the fastest ways to increase your credit score.

1. Clean up your credit report

Before you do anything else, go to AnnualCreditReport.com and request a free credit report from each of the big three credit reporting companies:

• TransUnion
• Experian
• Equifax

By law, you’re entitled to one free report each year, no matter what. When you request it, be ready to print or save it to your computer.
Once you have the report, examine everything. In particular, look for any accounts that show late payments or unpaid bills. If that information is inaccurate, the report should tell you where to send a dispute.
Keeping a clean credit report isn’t only important for your credit score; it can also make or affect your job prospects. Employers do and will pull credit reports before making hiring decisions.

2. Pay down your balance

According to myFICO, the consumer division of FICO, the company that calculates one of the most widely used credit scores, 30 percent of your score is based on the amount you owe.
However, it’s not simply how much you owe that’s important. It’s how much you owe compared with how much credit you have, a ratio known as your credit utilization. For example, if you have a $10,000 credit limit and a $5,000 balance, your credit utilization is 50 percent. If you’ve maxed out that $10,000 limit, your utilization is 100 percent.
There are many theories on what is the best credit utilization level, but on its website, Experian suggests it’s best to have a rate of no more than 30 percent. In other words, you should never have more than $3,000 charged at any time if you have a $10,000 limit.
If you owe more than that amount, paying down your balances is a quick way to boost your score. Live lean for a few months, hold a garage sale or pick up a temporary second job to find the cash needed to drop your credit card balances.

3. Pay twice a month

You might think you’re doing great because you pay off your card every month, even if it’s maxed out. The problem is that your creditors are only reporting balances to the credit bureaus once a month. If you run up a big balance each month, it could look like you’re overusing your credit.
For example, assume you have a credit card with a $1,000 limit. It’s a rewards card, so you use it for everything. In fact, every month, you hit your limit. The statement arrives, you owe $1,000, and you send in a check to pay it off. The problem is the credit card company is likely reporting the statement balance each month. So it looks like you have a $1,000 limit and a $1,000 balance. That’s a 100 percent credit utilization rate, and not a good thing as far as your score is concerned.
You can help alleviate the problem by breaking up your credit card payments. Go ahead and charge everything to get the rewards, but send in payments at least twice a month to keep your running balance lower. In addition, if you make a large purchase on your card and have the cash handy, pay it off immediately.

4. Increase your credit limit

Maybe you’re not in a position to pay down your balances. You could take a different approach to improving your credit utilization rate: Call your creditor and ask for a credit limit increase.
If you’ve maxed out your $1,000 card and get a limit increase to $2,000, you’ve instantly cut your credit utilization rate in half. The key is to not spend any of your new credit. It defeats the purpose of getting a limit increase if you immediately charge the card up to $2,000.

5. Open a new account

If your current credit card issuer balks at the idea of giving you a credit increase, apply for a card from a different issuer. It will still help your credit utilization rate, since your score lumps all your open lines of credit and balances together.
An individual with $10,000 in credit and a balance of $5,000 will have a 50 percent credit utilization rate regardless of whether her or she has all those amounts on one card or spread out over multiple cards.
Be aware, though, that opening multiple accounts at once is not good either. Too many new accounts can make you look like you desperately want to go on a spending spree. Don’t risk dinging your credit score — apply for only one or two new cards if you’re going to try this strategy.
You can compare credit card deals to find the best one for you at our Solutions Center.

6. Negotiate outstanding balances

Maybe your credit score took a dive because you have bills in debt collections. You can’t wipe out past mistakes from your credit report, but you can do some damage control by settling them.
Dummies.com has a short, easy-to-understand primer on how to negotiate your debt. The most important step is to get an agreement in writing.

7. Become an authorized user

Finally, if none of the above suggestions helps you, don’t despair. There is one final option, and that is to be added as an authorized user on someone else’s credit card.
Now, for this to work, you’ll need to find someone who loves you very much and who manages his or her money very well. Once you find this very special person who is going to do you a HUGE favor, you need to cross your heart and hope to die while explaining you have no intention of using their credit card. You just want to be added to their account as a way to build credit.
You see, when you’re an authorized user, the account will show up on your credit report so long as a card has been issued in your name. Then, your credit report will show all the cardholder’s on-time payments and (hopefully great) credit utilization rate. As a result, your credit score gets a boost, too.
While these seven strategies can raise your credit score fast, keep in mind that “fast” is a relative term. You won’t see results overnight; give it three months or so for the changes to begin affecting your score positively.

Greg Hammond Eagle Thirteen Properties/We Buy Houses Louisville

Flipping Houses Tip, AVOID OVER RENOVATING!

One important rule in house flipping is to never over-improve a property. Research similar properties in the area to determine the fair market value for the house you’re flipping, and then plan your repairs and renovations to improve the property to that point or slightly better. You’re likely to have trouble selling a $350,000 property in an area where the best houses are selling for $275,000.
Remember the lesson conveyed in this story from a top professional in the house-flipping business:
I once purchased a property and then quickly resold it to an investor who planned on renovating the home himself and selling it at a profit. He was mechanically inclined; he worked in construction and moonlighted on nights and weekends doing repairs and renovations. The house was in average condition: It needed new carpet, some wall patching, painting, and a few other essential repairs. I estimated the repairs to cost between $8,000 and $10,000 — or perhaps less than that because the investor would be doing much of the work himself.
The property was located in a desirable area that was attractive to first-time buyers. For that kind of market, I usually invest just enough to make the house attractive and functional, leaving the upgrades to the buyers so they can perform renovations to suit their tastes. I usually install new carpet, new fixtures, and new cover plates for switches and outlets; give the place a fresh coat of paint; have the furnace inspected; and have the plumbing and electrical systems tested and repaired (if necessary). That way I feel good about selling a house to a young family buying their first home. The property had about $35,000 worth of equity in it, so the investor should have been able to earn at least $25,000 from the transaction even if he had hired out all the work.
Unfortunately, this particular investor got carried away. He put just about every upgrade you can imagine into the house. He installed high-end moldings and fixtures, and he gutted and installed both a fancy new kitchen (which was fine to begin with) and a new bathroom. He even epoxy-coated the garage floor (a wonderful feature, but definitely overkill).

The problem with repairing a house in this way is that no matter how many upgrades and amenities you toss into it, the house is still in a market that caps the value. He had repaired the house as if he were going to be living in it . . . and entertaining royalty on a regular basis.
He had his rude awakening when he listed the house for sale. To earn the profit he wanted, he set his asking price tens of thousands of dollars above the going price of comparable properties in the area, and nobody was interested, especially first-time buyers who were in the market for an affordable property. He wondered why. He invited me over to take a look around and explain to him why he couldn’t sell the house.
This house was the nicest house I had seen in a long time and definitely the most beautiful house on the street . . . probably in the whole subdivision. I explained to him that he had renovated the house out of the market. To sell it, he would need to significantly reduce his asking price. He ended up selling the property for a net profit of about $3,000 (or $6.25 an hour based on how much time he invested in it).
What he took away from the experience was worth far more than the money he made. On a subsequent flip, he bought another wholesale property from me in the same neighborhood and netted just more than $19,000. I would say he learned his lesson. He sold the house within two months of marketing it to, you guessed it, a first-time buyer and his young family. They were excited to move into a fresh, “new,” affordable house and thrilled with the prospect of making their own upgrades over time.

Greg Hammond Eagle Thirteen Properties/ We Buy Houses Louisville