patrick.net

If you put 50% down I'll take you up on it myself. I'll take the 5 large.

Ok I was thinking about this with a co worker and we both agreed that no matter what, you'd have to be an idiot to take part in this with anybody but family members.

The reason is that anything can go wrong especially if you're friends will be living in it, you know how that will go. They could be there indefinately. With cash, they will spend the cash, and may need more or put you on the spot for more. Not only that, but they may need a loan for a business idea or medical bills but may not be able to dependting on the terms of the loan. So many uncertainties makes borrowing someones credit a high risk favor as well as a good way to lose friends.

snyderkv says

Ok I was thinking about this with a co worker and we both agreed that no matter what, you'd have to be an idiot to take part in this with anybody but family members.

You'd be better off with a perfect stranger. Borrowing anything from a family member or friend is probably the worst thing you could do. Find an investor, go 50/50 with a time frame for buying them out. An investor will view the risk and ask an appropriate payout for that risk (i.e. your bad credit). There are tons of small groups (usually family run) that do almost exactly what you want to do.

Really do you have a business name for them?

I know friends would be a bad idea, but family members? Not so sure. If a family member could assume the mortgage incase anything were to happen, then their shouldn't be much risk, plus it's free.

A lot of them advertise on Craigs List - I'm sure there are some scum out there as well so do your homework...they generally go by "rent-to-own" real estate with 5 year terms (i.e. you rent from them for five years until your credit is mended and can finance it yourself). Unlike a bank, individual and small group investors can be creative with terms and situations. Borrowing anything from a family member is a bad idea in general. It's bad enough that Uncle Joe gets drunk at Thanksgiving and breaks your wives antique butter churn but having him grind his ax in front of your children about some financial matter is another thing. If you were ever wondering why someone says they haven't spoken to their father/brother/uncle for 20 years, it is probably over money.

Get a prepaid credit card, the bigger the more effective.
I had a 550 credit score in 09 when I had just emerged from the 7 year itch. My past transgressions cycled off my credit report. But then I was left with a credit report that said I had no credit, and I had an old judgement on my credit report.

I got a Wells Fargo secured credit card, in which I put $3,000 down on. I used it for all of our purchases we normally would have used our debit card for, for a whole year. Making sure I paid down everything I put on it, when the bill came.

I had a 659 credit score with in a year, and at that time it was enough to buy my house.

I had to pay the judgement, as a requirement.

I would never buy anything with anyone's credit ever again.
I once bought a new Ford E150 as a work van, back when I was a carpet installer. I was like 21 and had a much older girl friend that had impeccable credit. My beater van broke down, I was prepared to just run out and get another $1200 beater(this was like in 89). My GF at the time, was like get a reliable Van, so you don't breakdown. It was at her behest that I get a new Van, and she would co sign.

When we got to the dealer, the salesman told us, that my credit was toast, and she would have to just put the loan in her name only. We did it, and it was the biggest financial mistake I ever made in my life. Every time we argued, I asked to leave on foot.

Never do business with family. You can cut a friend off, but family ends up being a pia forever. People take sides, etc.

Anyone who lends $$$ to a family member has to be willing to view the $ as a gift.

$500 isn't enough incentive to possibly have your credit ruined.

Elliemae, add another 0 to that 500 figure and that is what I said, but 5k or 50k I understand it's a bad idea.

But in this case, I'm putting down 50% so if anything happens, he has 50% equity he can use as comp plus he can live in it if I can't pay the bills no longer.

So as I understand why it's not a good idea, I think under certain cercumstances like having 50% equity, that it can be better than searching craigs list for strangers who will probably break your legs if anything goes wrong.

Build your own credit, it's not that hard.
In 2002 I was out of work for the whole year.
By 2003 rolled around, every monthly account from my cell phone, to even Macy's type store cards and two credit cards I had were all sideways.

Of course all of those accounts were in collection, and I was being harassed by biggest phone bank scum bags this Earth has ever produced. I informed them, that I will pay the original creditors, (and I would have) but they told me, they bought my debt.

All of my debt combined at the time it all went south was between 2.5K to 3K. By the time the wolves were knocking on my door, they were wanting triple that. Since the same laws that allows those sharks to legally extort people down on their luck, also permitted me to play the 7 year waiting game. Those fuck sticks got Jack Squat from me.

But in those seven years, I became a religious saver, and someone that only buys with in his means, regardless of credit worthiness. Seven years may seem like a long time, but it goes by "like that". Especially if you're already 3 or 4 years in.

Stop racking up negative credit remarks, don't even look at your credit for the length of time it will take for the newest item on your CR to age 7 years. Don't answer calls from collectors, don't respond to debt collector letters. Don't acknowledge your identity when a debt collector does manage to slip by your screen.

Do get a secured card and work it like a part time job. Don't keep a balance on it over 40% of the limit. And pay down as much as you can ever bill cycle, if not in full.

I have a 780 credit score now. And if I can have a 780 credit score anyone can, no matter how bad your credit is. You may have to pay off judgements that are even older than 7 years old. As there are no statute of limitations on judgements.
It wont effect your credit score, but no bank will loan you money with a judgement against you, as it will be a liability, until you pay it off.