Why Rent to Own?


Although owning a house is one of the most powerful ways to increasing your wealth and stability, many people are unable to obtain the necessary financing or make the full commitment based on varying circumstances.  This is why considering a rent-to-own program may be right for you. 

These programs will typically offer a lower initial down payment and monthly rent credits which will be applied to the purchase price, freedom to make minor repairs or updates to the current property, and the ability to help improve credit while investing in the home that you would have an option to buy at the end of the term.

Some options a buyer would have to acquire the necessary funds for a down payment would be through the use of savings, borrowing from a family member, income tax refunds, or investment plans.  Another benefit to the program is that you are not obligate to buy at the end of the term.  This offers you flexibility and peace of mind if circumstances were to change for any reason.

So, should you consider it?



Before deciding on whether or not to do a lease option, it is very important to consider the potential risks that you may face as well.  In order to offer you full transparency, let's look at the problems that are involved for buyers in a lease option agreement.
Unfortunately, there are people who will decide to move forward with a contract on a home with reasonable terms under the assumption that they will be able to qualify within the 1-3 year period to which the agreement has been set. However, just like fad diets or New Year’s commitments, if you do not change your actions and habits, you will be exactly where you started when the time comes to make your decision to buy.

The downside to this is if you decide to make the down payment and apply credits towards a home that you are unable to buy at the end of the term, you would end up losing that hard earned money.  Therefore, we do not recommend for buyers to jump in on a deal until they are fully confident that they have a set plan to improve their credit and save the money necessary to refinance and make the purchase. 

The seller is not responsible for assessing your own personal situation.  This is something you need to do your homework on and make sure that you are fully comfortable with the terms and the likelihood of being able to buy when the time comes for you to make your decision.

Feel free to contact me to discuss the issue further or get together with a lender to discuss your options.

5 Steps to Increasing Income At Your Current Job.


         Show Up Early - This step alone will make you stand above the crowd.  Most people are not willing to get to work early.  By taking the initiative, you will show your boss that you are a serious and valuable employee that is worth their trust and consideration for promotion. 



         Work Later – Do this without complaining.  Especially when there is a big project due or they are short staffed, this can be a huge help for your company.  Going the extra mile counts in the long run.  Believe in the sowing and reaping principle.  Although you may not get verbally recognized right away for your efforts, you will reap the benefits eventually.



         Share Ideas to Reduce Expenses – Begin listing ways that can help the company to start cutting back on unnecessary spending.  Share one of your ideas at your next meeting and continue to offer great feedback to your employer each time you meet.  Show them that you are forward thinking and looking out for the interests of the company. 



         Think of Ways to Increase Income – Just like step #3, there are various steps that your organization can take to improve their cash flow.  Start asking yourself questions like:


a.       What new services or products can be offered?

b.      Were there any requests that your clients need fulfilled?



          Improve Efficiency & Service – Find ways to constantly improve your productivity and always be learning about your job.  Take the time to reach out to your clients and really make a lasting impact with the people you come across.  Be willing to think of others and to genuinely be interested in their needs.

Decrease Debt - Improve Income

In order to start saving more and increasing your wealth, you must first begin to pay off the debts you have incurred that are inhibiting your advancement.  Many people have made the mistake of trying to tackle all their debt at once, which quickly leads to discouragement.  And here’s why.

There is nothing motivating about taking huge strides to pay off debt, but never fully realize the impact that it’s having on your bottom line.  If you stash away a few extra dollars towards each debt you have incurred without really keeping track of your progress or celebrating the little victories, you will very quickly experience burnout.

Therefore, your best bet is to first sit down and take the time to list out all of your current debts from credit cards to car loans.  Record the total debt amount along with the current minimum monthly payment on each account.

Next, choose the lowest debt and start to pay a little extra towards this one debt while paying the minimums on the others.  Choose an amount that will stretch you but is still within your means.  Once this debt has been paid off, you can then move on to your next lowest amount and apply the extra payment plus the monthly minimum of your old debt.

Continue this process until all your debts have been paid.  Be sure to celebrate along the way and keep track of your progress.  Over time you can then begin to apply your old debt payments towards a savings/investment account of your choice.

While you are paying off your debts and long after, there are various steps you can take to help increase your overall income while decreasing your expenses.  Essentially, each of the following ideas will require your commitment and discipline to follow through, but turning these ideas into habits can make all the difference.

First, by simply decreasing your spending on discretionary items, you can begin to better manage where your current income is going.  Many people fall into the trap of spending more as they make more, such as finally purchasing that big screen television, making upgrades to the house, taking the family on that 5 star cruise, etc.  Though there is nothing wrong with any of these purchases, we must learn to practice delayed gratification until the timing is right.  The average person typically makes a lot more than they think.

Next, you can take on a part time or second job, even if it isn’t that most ideal position.  Although this can be painful at first, building this discipline can be extremely rewarding and helpful when trying to pay off debts.  Additionally, you can begin to sell items within your household on Craigslist, Ebay, consignment shop or yard sales to bring in some extra cash.   Maybe consider starting a side business with a hobby or trade that you are passionate about.  Try freelancing, mowing lawns, or tutoring kids. 

Finally, you can either get a brand new job or stay in your current position and go the extra mile if you feel there is opportunity for advancement.  In the next post, we will cover some practical steps you can take to increase your income at your current position.  Stay tuned!

3 Steps to Remove Negative Remarks.


1.       Whenever a collection account is added to your report, this history can remain on your report for up to 7 years even after you pay off the debt!   Therefore, try to negotiate with the lender before making your payments in order to have these removed.



2.       It is almost inevitable that your report will contain inaccurate or outdated information at some point.  This can occur for several reasons and sometimes you may even find delinquent payments that aren’t yours!  Be sure to get these records wiped off and dispute any information that should not be on your report.



3.       Wipe out any negative narratives.  These are the comments that lenders will add to your report on things such as charge-offs, bankruptcies, settlements, etc.  Try contacting each lender and requesting that these comments be removed.

5 Steps to Using Your Credit Card Wisely

1.       Do not max out your credit cards every month.  This is a red flag for lenders.  In fact, it is good practice to use no more than 30% of your allotted credit limit.

2.       Since 15% of your score is based on the age of your credit history, it is important to not close out your most seasoned accounts.  In fact, it is better to leave an account open and not use it then to cancel it.

3.       When possible, pay off your full balance on the credit card each month, or as close to zero as you can.  This will help you to have a better score and to stay in control.  By building this discipline you will avoid falling deeper into debt as well.

4.       Increase your credit limit and you will also improve your debt to credit ratio.  This in turn will improve your score, but only take on what you can handle.  The last thing you want is to obtain high credit limits and then max out your cards.  

5.       Try to open at least an account or two with major carriers such as Visa, MasterCard, etc.  You will be perceived  as a lower credit risk.

Fuzzy Credit Scores - Do you know your numbers?

In order to build and maintain a healthy credit score, it pays to know exactly what it is. Scores can range anywhere from 300-850. The higher the score the better, and each bureau will fluctuate somewhat based on their own unique formulas.  Contrary to what you may hear, you do NOT have to pay for these reports.

If you have not taken the time to review your credit report lately, you can run a free search at http://www.annualcreditreport.com.  You have the choice of pulling reports from all 3 bureaus at once, or you can choose to do one at a time throughout the year (i.e. on a quarterly basis).  Each entity (Experian, Equifax, and Transunion) is required to give you one free report each year. 

Did you know it's estimated that 70% or more of reports indicate some type of error?  So, it's highly likely that you will have something that must be disputed within your lifetime. Be sure to stay on top of this and dispute any incorrect entries as well, because it can affect you and your overall score greatly.

Before you read on...take that all important step & check your credit!

The next most important step you can take to achieve a healthier credit score is to STAY CURRENT!  Whenever a payment is more than 30 days late, you run the risk of negatively impacting your score. Your credit history makes up about 35% of your overall score, so it's vital that you make every effort to pay your bills on time.

Also, recent delinquencies will have a greater impact on your history than one or two isolated occurrences which happened over two years ago.  Your best plan of action is to budget your finances in order to create a payment plan to set aside necessary finances to pay your bills each and every month.

As long as you are paying at least the minimum amount each and every month, you will build the discipline necessary to stay current.  Be sure to also establish a system of automatic reminders to avoid forgetfulness. 


In order to build up a credit score, you must have an account that is at least 6 months old and has had updates within the last 6 months, with no active disputes.  Any negative history can remain on your reports for up to 7 years. 

However, if you went through Chapter 7 or 13 bankruptcies, records could remain on your report for as long as 10 years.  Also keep in mind that by signing on as an authorized user with another who has strong credit can also boost your score.

Next, “hard” inquiries will only negatively affect your record for 1 year, even though they may show up on your report for 2 years.  While this is the maximum amount of time that negative marks can remain on your report, creditors can wipe records clean at any time throughout this timeframe using their own discretion.

Next post: 5 Steps to Using Your Credit Card Wisely.