Credit Scores = ROI Profits for Real Estate Investors

Strong credit saves real estate investors money on mortgage finance. A good credit score, along with other credit and mortgage qualifications, means that investors can pay lower fees for financing, such as points and interest. Also good credit scores help prevent garbage fees associated with nonprime loans.

But to make the real money for real estate investors difference comes into play in the return on investment (ROI). When you are with other people's money fund to build up your credit score over 720, the way to open multiple investment properties. Today you can finance investment property for as little as 5% down when you meet the qualifying credit requirement. This means that your ROI can be significant. On your cash investment for the deposit

For example, let's take a home I found in Bradenton, Florida. Built in 1999, this 3 bedroom, 2 bath, 1600 square foot home looks like a great buy for only $ 219,000. Assume that the property can be purchased for $ 215,000. With strong credit, down 5% cash investment of $ 10,750 buys in the appraisal value of $ 215,000. A lower credit score would mean that you would have to put down 10% -25% or more, which lowers your return on investment. You would need $ 21500-53750 $ down to buy the same $ 215,000 investment rating. In this case, reduce your ROI for your cash outlay considerably.

Of course, other factors, such as carrying costs affect your investment opportunities. The point: get your credit score over 720, so when you're ready to buy investment property, you get the best return on your money.

Copyright © 2005 Jeanette J. Fisher. All rights reserved

Jeanette Fisher, author of Credit Help! Get the credit you need to buy real estate, interior design and real estate books, has secured credit qualifications studied alongside credit scores to finance. Multiple investment properties Jeanette teaches college courses investing seminars. On Design Psychology and real estate professional Free "Credit Tips for Mortgage Financing" report, visit the Real Estate Credit Help Center