Raphael’s last blog post..Hope Springs Eternal

So you didn’t do the knee breaking thing, huh? LOL

A 580 to 720 in 120 days is phenomenal. I used this method on my wife’s credit and we managed to get a collection and several late payments removed from her credit. However, I bet if we did the knee breaking thing we could of gotten a few more things removed

I was pointed to your blog by Barbara. You did a good job on repairing your credit. As a former collection executive (no, I did not break knee caps) the use of the Fair Debt Collections Practice Act and Fair Credit Reporting Act are critical for someone to correct their credit report. I would suggest that someone attempting this also request a post card (it is green) from the credit bureau as it proves receipt of the written correspondence. Under the Fair Credit Reporting Act - the credit bureaus have 30 days to investigate and report back to the debtor. This little tip can actually cause negative items to be removed and raise an individual’s credit score.

Understanding the rights afford an individual under the above referenced acts, can and does help individuals to raise their credit scores legitimately. One of my friends, using the appropriate techniques and guidance was able to raise his credit score from 580 to 720 in 120 days. Usually, it takes from 30 to 90 days for an individual to resolve incorrect information on their credit reports.

Yes, many credit reports do in fact have incorrect information. So your advice is critical.

Glenn’s last blog post..Real Estate News 05/05/08

Seriously though, as I was writing the comment I was telling myself, “dang . . . this should be a post.”

Maybe I’ll do one LOL.

I haven’t heard “trading homes” as a new buzz word, but then again, since I opened eVentureBiz I must admit I haven’t been as involved in real estate.

I’m curious to see your comments on tomorrow’s post

Yes, I used to be a Realtor.

I have some good friends who have done a lot of flipping and they used the 1031 option. It worked great for them. They just kept rolling the money into their next flip.

Now instead of hearing “1031 Tax Exchange”, I keep hearing “trading homes”, so that must be the new buzz word.

Thanks for the great demonstration on how a 1031 works. That, too, would make a good post topic (in case people don’t read your comments).

Barbara Swafford’s last blog post..NBOTW Finds Harmony

Did I hear it somewhere that you were a Realtor? Maybe that was someone else?

About trading properties, I’m pretty sure you’re talking about 1031 exchanges. They are a good deal if you can set one up and if you might get hit with taxes.

The advantage of 1031s is you can defer tax penalties if you trade into and out of a house instead of the traditional selling and buying. You will, however, get hit with taxes with the sell of that house (if you didn’t trade again).

This is favorable because it frees up more cash for investors to invest in other houses. The one catch which is great for your heirs but not for you is all taxes are forgiven upon your death. That is, if you die and your property is handed over to your heirs, all the previous built-up taxes are forgiven for them.

Here’s an example of how a 1031 exchange can be so attractive for investors.

Let’s say you own a house you can sell for $200,000. You find a bigger house you want valued at $250,000.

What you could do is set up a multiple escrow closing for the two houses.

You find a buyer for your property = $200,000.
You buy the house you want = $250,000

At closing, your buyer pays you $200,000. You then turn and give the seller of the house you want $50,000 of your money + the $200,000 check your buyer just gave you.

You just bought and sold at the same time and exchanged properties.

If you sell your house before your find a new house you want, you can still do it through a lawyer and you are given time limits to find the next house.

I personally haven’t traded properties before, but if you flip a lot of houses and get hit with taxes, it’s a good idea - especially if you can buy and sell at the same time.

So what do I think . . . I think they’re cool!

This looks like it will be a very educational series. I would like to see one on selling too.

What do you think of the new trend of trading properties? Is that the same as 1031’s?

Barbara Swafford’s last blog post..NBOTW Finds Harmony

In short, yes but rarely.

When I was negotiating with the first bank I tried to go through for my current mortgage, I asked if the loan was assumable (you know me, I always ask for a little more than what’s offered). The loan officer said no but after a little persuasive argument on my side, he spoke with his boss and they agreed to make the loan assumable for me.

Banks will work with you. They want your business and they want your money.

It’s best to get in good with a bank and get them to trust you. This is big. If a bank trusts you they will bend the rules here and there (a little tougher these days, though).