Follow these steps to save money and get yourself out of credit card debt before your latest expenditures are reported and negatively impact your credit score.
Step 1 - Zeroscape your properties. Whether own one or multiple buildings, cities in the arid Southwest offer generous tax breaks for property owners who commit to cutting water usage by zeroscaping the grounds. Adding gravel and native, low-water consuming plants can cut water usage dramatically and work together with the savings in taxes through the municipal incentive programs to offer enormous relief.
Step 2 - Unload any properties that aren't turning a profit. If you have purchased any wholesale properties during the pandemic and are stretched too thin to begin renovations, unload the property! Anything that isn't making you money is dragging you down and BRRRR investors often find themselves unable to turn around properties as they wait to accumulate savings or for improved credit or interest conditions. This is a huge mistake as more often than not, empty properties still cost money to exist even when not currently under renovation through the gradual degradation of material value, inflation and property taxes. A cash deal from a local wholesale buyer and resulting cash injection into your business can be the answer to many of your short-term credit problems. Don't worry! After step three, you'll be back to purchasing wholesale properties for fun and profit!
Step 3 - Refinance. Once step one and two are in place and the properties have been zeroscaped, the tax incentives have taken shape on your balance sheets and you have unloaded any properties that aren't making you money, refinance and restructure! The improved tax conditions and balance sheets will encourage banks to cover costs with a deeper assurance on the back end that things are copacetic. The refinancing will improve your credit score and you'll have smooth sailing onto your next purchase. Hopefully you will have learned more about what properties can and can not turn a profit for you and you will be able to avoid accruing burdensome properties in the future!
Rita is a finance, real estate and lifestyle blogger from Santa Fe, New Mexico. She has Bachelor's degrees in Economics and Business from the University of New Mexico. She lives in Albuquerque with her boa constrictor, Nala.