In a previous article, I discussed the importance of investing in real estate to build generational wealth. That is a simple sentence for what is essentially the end goal in the plan. There’s a lot that involved in the process of real estate purchase BEFORE the properties are bought. That even pertains to properties purchased for the smallest amount.
Good credit is always the elephant in the room when discussion purchasing real estate. Regardless of how you acquire the properties and their cost, you will still need access to funds to renovate. Sometimes you will need access to quite a bit of money. Unless you are super handy and your renovation skills are on point, poor credit will hinder you substantially.
So before you even consider buying low-cost properties with the goal of renovation, you must first tackle your credit if it is not up to par. The first thing you should do is have a copy of your credit report. A copy of the report will give you a better understanding of what you’ll need to tackle if there are credit repairs to address.
When thinking about credit; and credit scores, it’s not just about the score. You must also factor in debt to credit ratio when you think about gaining access to funds because this will play a role in your ability to get the funds needed.
So, as you see, building generational wealth in real estate must start with a lot of planning; before you can even reach the strategy stage. With that said, it’s never too late to get started. The future and next generation are counting on you.
If you want to learn more about building your credit:
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