hey, guys, it's Melvin Johnson and today in this video, I want to talk to you
about the benefits of having student loans and how they can also help you in
your real estate investing career
hey guys love Johnson again I'm here with the park brothers trying to talk to
you guys today about the benefits of student loans but before I do that do
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form and so that you can make informative decisions about your real
estate investment career hey today I want to talk to you guys about student
loans and the benefits of possibly keeping them on your credit report most
people don't like student loans because it hikes their DTI if you don't know
what DTI is it's your debt to income ratio most of us when we graduate from
college we have debt student loan debt and we go to try to apply for a mortgage
on the house or an investment property and we realize that the student loans
the things that we've been working so hard to obtain you know get in our
degrees have actually not allowed us to be approved for a mortgage well today I
want to talk to you about how you can offset that DTI the thing that's
stopping you or it may be stopping you from actually obtaining mortgage one of
the things that you can do right now it's not a easy process it's not a quick
fix but one of the things you can do right now to offset that DTI is there's
a thing that you can ask the loan officer and please can solve your loan
officer about this strategy before taking my advice or before going full
head of steam and implementing a strategy for one of the things that you
can do to offset the DTI is if you can start today or start next month and have
an individual like a relative of a mom that cousin whoever if you can prove for
a year that these individuals have been paying on your student loans the loan
officer can submit that plan to the underwriters and show that that is no
longer your debt it's somebody else's debt and as long as you're able to prove
that that someone else is paying on that student loan which belongs to you then
they cannot and they will not count that towards your DTI
so you've just completely eliminated a DTI due to this strategy it's amazing my
wife and I we apply for mortgage last year and then we learn about this
strategy because it would be several years before we were able to sort of all
set that DTI and learning about this strategy really helped us free up our
personal credit and our DTI to go out and apply for a convention or FHA if
that's something that you guys want to do so that's awesome and another thing I
think that we oftentimes overlooked how powerful student loans can be because we
are trying to get these things removed or trying to figure out if we can you
know have the bureau's validate this we're trying to get it removed and God
for being you guys are out trying to have these things remove illegally when
in actuality if you kept them on the credit report you can actually do more
good than they are doing a harm right now on your credit report another good
thing about them is that they they help you with credit history
okay credit history and payment history when you're in college you know you may
have not known this that but certain loans are sort of in this you know
forbearance sort of delay or defer payment stage and it's tracking up it's
racking up positive payment history for you it's actually allowing your credit
file to season so to say is what we say in the business credit industry or the
personal consumer industry it's actually allowing that account to season so if
you can continue to pay on those getting some payment plans or actually pay on
these these will actually help you more than they will hurt you because I've
seen often times and having the credit the personal student loans removed often
the credit report now individual has no pay ministery they have no know a
seasoning of the fowl or no mixed credit so that's actually hurting them in the
long run from having these accounts removed off of the credit fowl so I
wanted to kind of dispel them is know more that you know if you have the the
student loans removed that it would solve all of your problems well that's
that's important that's not true entirely you know for some cases that
would be the case if you know if you've missed some through payments if you had
a lot of missed payments on the student loans that you may want to consult a
credit repair expert and having those you know remove legally and what are the
steps to them but if you have not had those problems if
you're just graduating you're out wanting to do real estate and you've
tried to apply for a conventional or FHA and you're not able to get approved
based on the DTI then you may want to look into the steps that I just
mentioned which is going in talking with the loan officer first that's your first
step making sure that you can solve with a professional in this field and then
once you have the approval that that strategy could work for you making sure
that you implement it so you have a relative and it could be your spouse you
know we can be somebody who lives in the same household is you paying on that
account and that debt after a year of having positive payment history will not
report as if it's our own actual credit so I thought this was phenomenal Tim
guys I think this is really groundbreaking for a lot of individuals
who are struggling to get approved for a mortgage or get a get approved for
financing based on that and this is actually also seen a lot of times with
kids parents go and they take out these loans in their their - their names right
for their children so later on when the children graduate it's still reporting
on the parents credit profile now when the parent goes and applies for a new
car or a new mortgage and having this account reporting on their credit file
they're able to say hey this actually isn't my debt it's my my son's debt or
it's my daughter's debt or vice versa if the child went out and had the loans
issued in their name but the parents were paying on it the child is now able
to say hey actually my mom is paying or my dad is paying for these student loans
these aren't this isn't my debt the debt to income ratio actually only factors
your debt and if you can prove that this is it your debt it's somebody else's
debt then you can find yourself tremendously out offsetting and this can
work with anything such as car personal loans it can it can really you know
apply for anything - often times that we have individuals co-signing or taking
out debt and other people's name right for the sake of being to prove for so
you know for example my brother may go and apply for a new vehicle his credit
isn't strong enough I take out the debt you know in my name but it belongs to
him if I can prove that right it's about what you can prove
prove that then that will not factor into my debt to income ratio so guys I
hope you found this tip to be very helpful I hope you consult a
professional in regards to this ax tip this uh this strategy and if you have
any questions feel free to reach out you know our contact information will be
on the link below and I look forward to hearing from you guys about you know how
you could possibly implement this strategy to help jump-start your careers
whether that be in real estate investing or just buying your home for the first
time don't forget to like this video again if you haven't already hit the
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you know I look forward to hearing from you guys soon