Any FICO algorithm experts here?

[RealtyNole]

Sounds like a good way to go bankrupt ala many real estate groups in the 2008 bust and the 80s bust before that. Rinse repeat. I know a lot of people do it. But, early in the process you create considerable vulnerability while you hold the debt and have no equity. One at a time while you create the illusion you know what you’re doing seems safer.

One way to fasttrack him would be to provide whatever resource you had to buy a real estate chain in your early 20s. They don’t seem that pricey compared to say buying a McDonald’s.

Life is all about risk. Crossing the street is about risk. My husband had to stop at the Sheriffs Department yesterday because people were driving 80 - 90 mph IN FRONT OF A SCHOOL. Yes, it was 'after hours' and school wasn't in session, but there was something going on afterwards... the place was packed. He witnessed a kid almost get taken out by the cars. It scared the hell out of him.

I've known--firsthand--people who've almost lost everything in the stock market... in starting up a business... in divorce... investing in their moron offspring... etc... etc...

Conversely, I know people who've done very well in these things. Several who've made out like bandits (no pun or offense intended).

If I'm going to bet... I'm going to bet on something that I understand and somewhat control. I unloaded my real estate franchise in the last quarter of 2007. While everyone else was high as a kite on the smell unending real estate commissions... we were downsizing and cutting out all unnecessary costs. I watched other brokerages in expand mode... we were in stop and secure up the perimeter and fortify our defenses mode. We saw the crash coming months and months before others did.

Yes, we did experience some pain. However, it was NOTHING like many of the other brokerages did during the crash and its aftermath. Actually, we had switched our focus into another market segment completely... and it was paying off very well. And guess what? We were pulling out of that specialized market when everyone else was running to get into it. And guess what else? That market segment started to cool off. We were concentrating on a certain area of potential high growth (at least it was percentage wise). We've been doing that for three years now. And guess what? Other agents are running to it. And guess what else? We are getting ready to move into another area of business.

You look out onto a pond and see 2 lily pods. The next day you see 4 of them. The next day there are 8. 16... 32... 64... 128... 256... 512... The whole dang pod is covered in them. It's all about seeing the lily pods quickly... before the whole pond is covered in them. It's about identifying and acting upon the potential trend before everyone else even knows something is going on.

Yes, there is risk. But. Like I said, "LIFE IS FULL OF RISK!" If I'm going to take a chance... it's going to be on something that I understand. And something that I'm really darn good at.

We're getting way off topic. This was never about my son trying to be a real estate mogul. It was a question about jumpstarting his credit with a really good push. Someone mentioned that it wasn't necessary for him to have such a high credit score at an early age. And I simply pointed out that some of us are doing real world things in our twenties. And credit did matter. I wish that I had utilized more of it before we knew it was time to pull out.

 

[Banditking]

Life is all about risk. Crossing the street is about risk. My husband had to stop at the Sheriffs Department yesterday because people were driving 80 - 90 mph IN FRONT OF A SCHOOL. Yes, it was 'after hours' and school wasn't in session, but there was something going on afterwards... the place was packed. He witnessed a kid almost get taken out by the cars. It scared the hell out of him.

I've known--firsthand--people who've almost lost everything in the stock market... in starting up a business... in divorce... investing in their moron offspring... etc... etc...

Conversely, I know people who've done very well in these things. Several who've made out like bandits (no pun or offense intended).

If I'm going to bet... I'm going to bet on something that I understand and somewhat control. I unloaded my real estate franchise in the last quarter of 2007. While everyone else was high as a kite on the smell unending real estate commissions... we were downsizing and cutting out all unnecessary costs. I watched other brokerages in expand mode... we were in stop and secure up the perimeter and fortify our defenses mode. We saw the crash coming months and months before others did.

Yes, we did experience some pain. However, it was NOTHING like many of the other brokerages did during the crash and its aftermath. Actually, we had switched our focus into another market segment completely... and it was paying off very well. And guess what? We were pulling out of that specialized market when everyone else was running to get into it. And guess what else? That market segment started to cool off. We were concentrating on a certain area of potential high growth (at least it was percentage wise). We've been doing that for three years now. And guess what? Other agents are running to it. And guess what else? We are getting ready to move into another area of business.

You look out onto a pond and see 2 lily pods. The next day you see 4 of them. The next day there are 8. 16... 32... 64... 128... 256... 512... The whole dang pod is covered in them. It's all about seeing the lily pods quickly... before the whole pond is covered in them. It's about identifying and acting upon the potential trend before everyone else even knows something is going on.

Yes, there is risk. But. Like I said, "LIFE IS FULL OF RISK!" If I'm going to take a chance... it's going to be on something that I understand. And something that I'm really darn good at.

We're getting way off topic. This was never about my son trying to be a real estate mogul. It was a question about jumpstarting his credit with a really good push. Someone mentioned that it wasn't necessary for him to have such a high credit score at an early age. And I simply pointed out that some of us are doing real world things in our twenties. And credit did matter. I wish that I had utilized more of it before we knew it was time to pull out.

I said that under the assumption that a 21 year old isn’t likely to be borrowing huge sums of money. Not to say that people in their early 20s aren’t doing real world things. Just that, their networths in general are low. Generally, they are on the ground floor, without assistance, and that learning how to function without accumulating debt is probably a good idea for the vast majority of people.

I didn’t buy a house until my 30s because I graduated from graduate school in 2004 and the market runnup seemed unreasonable to me. Reasonable risk is one thing. Unreasonable risk is something else. Control is often an illusion. Early risk is often subject to the greatest vulnerability. If you can mitigate that, you’re likely to set yourself up for a better recovery should things go South.

 

[2noles1cup]

It varies per creditor. Some won’t even report on the AU. You must ask. It’s not as fast but, get him a cash secured card and keep a balance on it. A very low balance. After a few months of payments he will have scored. Pretty good ones.

This, the AU wont build credit near as fast as what is stated above

 

[Renegadenole]

If you already have a Capital One account, then CreditWise is a decent app and already built in.

Pay off all revolving debt each month. Never pay interest on anything that isn’t a cash flowing investment.

Find a small bank to work with on real estate, business and investing. Your credit number will be less important than your business financials, pro forma and personal relationship.

BTW - I own 48 units over 3 properties, 2 SFH’s and 26,000 sq ft of commercial property. My small local bank holds all the debt with me except for one property. Working with a “portfolio” lender has provided me with opportunities to leverage equity. The last deal we didn’t take any capital out of pocket. Of course it will cash flow a little less since we borrowed 100 percent but we didn’t need the cashflow as much as we wanted to own the property for future growth.

 

[Stax63]

@nynole1, I am.... Just like I always want to beat my high score / level on Tetris. Or, my time on Super Mario Bros.

We used to never concern ourselves with credit. We were "Only pay cash when you buy something" people. However, we've learned that having a good credit rating is super helpful when trying to get a lender to finance a Flip, spec, or development. The cash for downpayment and the LTV still matter, but lenders like their Trimerge number.

Funny, as a Broker who has been licensed since 1989, I have been surprised lately that pricing is a little baller for some folks putting 10% down rather than 20% down. The PMI is the thing.