In this episode of the Alchemist Nation Real Estate Podcast, I talk to Jose Martinez a credit expert and I wanted to know what brought him into real estate in the first place because I know he really started when he was very young. He says that when he was about 23 years old though he had his first son at 21 years where he was like he had to give his kid something because he grew up in the background where his family didn’t leave him with anything no money, no education, no nothing, so he had to be the difference-maker in his family, and at age 23, he purchased his first home which was multifamily and he did this because he really wanted to help his family where they were good owners, like they always rented, took care of everything and never got anything for it. He was like why not buy a house even though his family ran away from him, they still helped him to take care of his house and it was like a family affair. That is when he really started which led him into partnering with the broker who helped him purchase his home. So he started real estate in 2014 when he got hurt at the job and he wasn’t making any money.
To listen to Jose Martinez’s Alchemist Nation Real Estate Podcast on Anchor: #113 – Alchemist Nation Real Estate Podcast with Jose Martinez A Credit Repair Expert
I wanted to know what was his transition from being a young real estate investor to a real estate agent to credit repair. He started in 2014 where he had a bad relationship that made his career slow and when he got out of it, he started taking real estate to the next level. He appreciates being on the first brokerage because they gave him an opportunity despite being the only Latino. The only thing he says that he never got was the education of the good head start that he needed to progress in real estate. He wasn’t learning about social media or marketing or cold calling or building great relationships with other lenders or attorneys. After four years of being with his first brokerage then he decided to take a chance and go to a different brokerage and try something new. At second brokerage, he learned more and it was more of a hands-on with the broker where he did 8 deals in a year. He then fell in love with exp that elevated everything he ever wanted at the beginning of his real estate career like education, marketing, the support and it was in 2018 when he got into credit repair.
Since Jose is a credit expert, I wanted to know what kind of tips does he have for someone who wants to fix his/her credit. The first thing he asks why do you want to fix your credit, what is your goal and how would you feel when you accomplish your goal because that is what the credit is going to be able to do for you. He always looks at credit factors though you can use credit karma which isn’t accurate because it just provides a gist of where you’re right now with at least two credit bureaus which are Transunion and Equal facts. The main thing he does is looking at the credit factors that are composed of five different sections, your credit score is composed of payment history which makes up 35% of your credit score. So one late payment can cost you anywhere between 50 – 100 credit points. So you don’t want to make that mistake and have no late payments especially if it is something that reports to the credit bureaus. What you need to understand is which one of your debt is reporting to the credit bureaus like credit cards, loans vs store care or a light bill, or a cell phone bill which don’t report but major things do. The second thing is credit usage where you have to tally up how much credit you have in total for example if you have $10K in credit, you should never use 30% of the limit because creditors are going to look at that. This shows them that you’re desperate for credit and you’re overusing your credit. Once they see you use over 30%, the scores are going to start dropping. He always tells people that if you’re in the 700s or the high 600s that the only way to get higher is to stay under 10%. The other thing is the age of credit i.e how long have established credit or have you had credit and this is from an average of old and youngest credit card and if you want to be in the green, the average is 7 years which makes up 15% of the credit score. The last two are based on new accounts when you apply for something, then you’re going to get that hard inquiry. On top of that, you don’t want to have too many, it takes two years to fall off. The last thing is to differentiate between the cards that you have i.e revolving vs installment, so have loans like mortgages, car payments versus credit cards. They want to see a mixture if of both in order to trust you.
Jose offers 3 pieces of advice to 20-year-old Jose on how to become successful in real estate and have his credit cleaned up.
1) – Educate yourself
2) – Invest in yourself/your education
3) – Get rich or die trying.
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