Well you shouldn’t be!Â Are you building credit, having a history of credit is very very important if you want to do real estate deals.Â You can of course do it without credit, but a world class investor will always have some sort of credit history.Â Are you building credit history?
If you are not building credit history, you should start if you ever plan on owning a piece of real estate, or leveraging other peoples’ money.Â Debt can be a double edged sword, there can be good debt, and there can be bad debt.Â There are many people who keep telling me they’d rather do cash, and they don’t want to be in debt, what they are ultimately saying is the fear presence of credit cards and having debt.Â They are scared that a credit card will put them in debt.
In can absolutely put you in debt, but it can also make you rich.Â Learn how to use the power of credit cards, and building a credit history.Â The only reason I was able to borrow $200,000 from the bank to buy a building, was because I had established a 2 year history of my borrowing money, off a credit card.Â Â I have credit cards and no debt, when I use my credit card I pay them off immediately.
Or my friends tell me they’ll keep looking for the best credit card.Â Only it really doesn’t make much different at all, unless you plan on carrying a fat load of balance on your credit card.Â I don’t care if the interest is 100% APR a year, because for me I pay it off, I don’t pay interest. Now of course, I probably would get another card that wasn’t the highest, but in my opinion for just building credit you don’t need to nickle and dime your interest rate unless you are planning on being in DEBT and not paying off your remaining credit card balances at the end of the month.Â Unless you plan on spending more than you are making and go into debt and really screw yourself for sometime.
Hey, we just purchased a $220,000 house, using OPM other people’s money.Â How long is it going to take u to save $220,000.Â I wana pay cash?Â Ok wait 10 years to save up that much and pay cash for the house, by that time we who use leverage will be financially indepedent by the time u buy your first house, and have to SAVE all of your money to buy a house.
I’ve probably said this scenario acouple times, but it is key.Â A person who understands the power of debt leverage will get ahead financially far beyond someone who does not UNDERSTAND the power of debt leverage.Â Live in appreication of debt, and use it, don’t fear it.Â Cutting up your credit cards won’t make you happen, that just makes you miserable.Â And I’ve done it before.
Now I’m not suggesting get in debt, I’am suggesting be wise, learn, understand debt leverage so you can make educated moves.
Another way Bryan and I are using debt leverage with BW Online, Inc is getting 0% APR credit cards, on balance transfers for 12 months, and then lending the borrowed money out at 25% APR on prosper.com.
Making money out of thin airs, learn how to use debt leverage to help you financially, or else it will be a slow process becoming financially indepedent, seriously.