So last time we met with Trent and Ester,
we made a game plan of buying their first four homes. But we’ve got a glitch.
We actually just sat down. We went through the banking and the
pre-qualification. And today, we need to break some news to them. It’s not bad
news it’s not over comfortable. But you never know how someone’s going to react. So,
let’s do this. How you doing?
Good to see you again. Trent, how you doing, brother? -Good. How are you? -Good to see
you, brother. Alright. So, listen. I wanted you to come
in today because today we want to talk about the next step, right? -Right. So, this
time, we talked about the gameplan of buying how many homes? -4. -Yeah. We’re going to
do those 1 or 2 at a time. You guys did a great job.
You submitted all of your banking information that we needed to
go through pre-qualification. But we have a couple of things that came up on the
credit. I don’t know if you’re aware of them or not. And so, there’s some things
that need to get resolved. If we can get them resolved, then we can keep moving
forward by properties. If not, there’s going to be a glitch. -Okay. -That makes sense?
-Absolutely. -Awesome. So, Derek… Hey come on in, man. -Hey. Trent and Ester. -You guys remember Derek? -I
guess. -Alright. Derek’s been collecting collect and add
negate all that information take it to our different lending teams. And in our
partnership to buy these properties, Derek isn’t just doing pre-qualification
on the next house. He’s not even do a pre-qualification on the next 4.
He’s working with our lending team on her strategy to buy the first 10 houses.
Because we’re juggling a number of different banks. But in the process of
doing that, income came back where it needs to be. But we found a couple of
things on the credit like I said. Do you want to kind of show us on what you
found? -Privilege I have working with you guys is trying to understand your
journey. And we came back. Lending came back. And you got a couple of hiccups in
your in your credit score that can cause a little slow down. But these are things
that you can quickly take care of and resolve. So, I wanted to make sure you
guys were fully aware of this. But on here, it looks like there’s a student
loan that you have in place that needs to be resolved. -What does that mean by
the way? Like… People have student loans. -Yeah. Which is normal. -What needs to be
resolved? So, you need to have some sort of a payment plan. A lot of people will
defer student loans for a long time. And eventually, they can go into collections
and then you’re going to start paying a lot interest, interest, interest.
We need to have some sort of a plan set up to where you guys are paying that. -You
guys are aware of this? -Yeah. We’re aware of this and we’re actually a step ahead
of this where I did defer it year after year after year. And it did then go into
a collection. I didn’t defer it one year another year. And so, what we’ve done is
we are now making payments every month and we’ll be completely out of student
loan default as they call it starting in March. -That’s fantastic.
-Already taken care of. -Yeah. -Alright. Awesome. As soon as that’s addressed… So,
that’s one of the things that’s hampering the credit score. -So, you mentioned medical bill. -Yeah. So, it
looks like you guys have a small medical bill that at some point took a toll on
your credit score. So, let me know what happened there? How are you guys hitting
this one? -Our daughter broke her collarbone on the 4th of July 2018. I hate to use the word victim but we’ve been the victim of the
insurance company and the medical provider fighting back and forth and not
paying the bill. -Something is on your credit that is actually between those
two birdies. -Correct. -So, what’s happening there? -Everything I think for the most
part is settled and it should be taken care of in the next month that we can get in. -What does that mean? -Both of them have come to an agreement because we are… We paid
our deductible. And so, they’re coming to an agreement on what they will pay
because the insurance was trained to get the hospital to lower it. -Got it. T-hey
finally came to an agreement, now they’re getting paid. -Yeah. -So, does that’s paid. We
can actually take my credit report and give it to a third party and they’ll
take it off my credit all together. -Yeah. That’s called a rapid rescore. -Yeah.
-So, when you actually have things on your credit and you get it resolved, there’s a
way to submit it. And within 48 hours and have it updated on your credit as if
it’s just not there anymore. And immediately, there’s a change to
credit scores numbers and things like that. -I didn’t know it could be that fast.
That’s interesting. Most people do it. Organically and it takes months.
There is actually a way of submitting it and actually paying like 30, 50 bucks or
something like that. And they basically rush it through and then have the credit
bureaus recalibrate and then send it back to you. We do it all the time. The
things that you have on your credit. Like, this is normal. A lot of people aren’t
monitoring or checking their credit on a regular basis. And so, sometimes things
even crop up that you’re not aware of. This third one I don’t know if you’re
aware of it. There was one more thing. -Yeah. So, it looks like a local
fitness joint has you on a collection for something probably very small. Which
can also cause a problem. So, have you guys been able to rectify it? And
have you been aware of that? -I was aware of it and then unaware of it
as it come by the wayside. -Okay. -Basically what it was is my debit card got
reissued and they kept trying to take the fees and they never actually sent me
a letter. -They just sent it to collections. -They just sent it to collections. -Okay. -So, I
think it’s like $200 and it… I’ll say it made for a really happy
conversation between the 2 of us when we got that information. -I could say
my wife has everything on Autopay. Like the loan had adjusted by
like $8. And so, we were sending in all of the money except for
8 bucks. And so, they sent 8 bucks to collections, hit the credit.
Slammed it. Did the rapid rescore after we solved it. And credit score bounced
actually higher than it was before. So, listen. Here’s the thing, here’s the
takeaway from this: This stuff, this is normal like it’s just everyday
living. It’s things that happens but it needs to be cleaned up for us to be able
to use your credit to actually start buying properties. -Yeah. And we’re on it.
-It sounds like all of these can be resolved inside of 60 days. -Easily. -Alright. Derek, but I want you to do is I want you to work close to at Trent and Ester
on each of the 3 items. Make sure that we know exactly once they’re
resolved and then let’s have our lending teams submit if the rapid rescore. Once we go
to get the credit score back, I think even with this, your credit score is even
sitting is still around like a 680. Which by the way is super lendable real estate
credit. Like that’s super usable. So, this is definitely going to Lou it back in an
arena where we can get past this hump and then move forward on actually
checking out deals of my properties. -Sorry. I would say, Kris. I have a question for you.
-Sure. -Why would a high credit score, how would that affect your loan as far as
interest rates? -Banks put your brackets. And if you do a lot of lending with the
bank like we do, we’re doing over 100 million a year. Those banks will
actually give us superior ratings. And what it basically means is if your
credit score is between like a 650 and a 680 versus a 680 and a seven. And a 700 and 720. And a 720 to 780, the bracket will actually help
determine how good of a rave you get. So, the higher the credit score, the lower
the rate. We get superior rates just because the volume banking that we do.
And I got to tell you. There’s a lot of people who get frustrated with credit
scores. It feels like this Herculean like “Who do I talk to? How do I track this
thing now?” So, some people let things slide on their credit for years. But when
you’re ready, usually within 80 days 60 days,
50 days, it’s addressable. You can wrap it rescore and then you can move on. And I want to
say one more thing though. Let’s just say we come back to each other
and there’s another hiccup. And basically the rapid rescore doesn’t reflect well.
There are ways of buying real estate with that credit.
I know because every single thing that I buy it doesn’t use any my credit. So, I
will share that with you and show you guys exactly how we do that. So for me,
other way, I want us to do it because it’s the easiest cleanest path. But if
not, then we have a secondary path and a tertiary and a fifth. So, there’s always a
way to keep moving forward no matter what. Does it make sense? -Yeah. -Alright.
Listen. You guys got your work cut out to for the next 60 days. Get it
fixed, get it cleaned. And then when we get together again, you will be sitting
down and we’ll get jamming on properties. Deal? -Sounds perfect. -Alright guys. So,
here’s the reality: Navigating the game of real estate for most people is tricky.
And it’s like being in a maze, a labyrinth. And you get lost and you don’t
know how to get out. An expert has navigated so many times that they know
how. And if you’re sitting there thinking, “My situation might be simple. Maybe it’s
tricky. But either way, I want to make it through the other side of the labyrinth
where the big money is.” And I want to demand more of my time freedom and more
money just like Trent And Ester. And if that’s you, click the link below and you
get a chance to connect with my team about what it looks like to partner with
me and have a team of experts like Derek, myself and a host of others that can
help you build a super successful portfolio. Other than that, check out this
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can figure out what happens to Trent and Ester in the next phase of their