Updated: Sep 28, 2022
Craig and Sarah recently got engaged, so they've decided to rent a house and move in together. They each have a good credit score, but they don't have enough saved for a down payment. The plan is to save two years and purchase a home after marriage!
Three years have passed, and Craig & Sarah are now married. They have a 1-year-old little girl, and her name is Crystal. Craig and Sarah are public school teachers with a combined annual income of $105,000. They still don't have any savings to purchase a home, so they decide to rent a bigger home for more space. They have a good credit score, so they believe they can handle the rent increase easily, even with zero savings.
A Hidden Problem...
Two months after moving into their new home, the transmission in Craig's car breaks down, and it'll cost $3,200 to fix it. The limits on their credit cards aren't that high, so they decide to buy a new car and try to find a deal with no down payment. Since they have a good credit score, they feel the slightly higher monthly payment won't be a problem.
Can you envision the end of this story...
3 Reasons Why Credit Scoring Is Flawed & Almost Useless To Real Estate Investors; And What To Do Instead!
Credit Scoring Is A Lagging Indicator: By the time we find out that a tenant's credit score is lower than we would like, it's always too late.
It's Too Easy To Hide The Relevant Financial Facts! Not all debts are reported to the credit bureaus and most likely never will.
Everyone Seems To Have Allowed Themselves To be Blinded To The One & Only Real Cause of Credit Issues: There is no mystery to the one single issue underlying every credit problem ever encountered; OVERBUDGETING ([spending>income]!
"The Only Difference Between A Tenant & A Real Estate Investor Is How They Think About Whatever It Is They're doing!"
Craig and Sarah were introduced to The Wolf Pact by their real estate agent, and things changed immediately! Not so much about what they were doing but how they were thinking about what they were doing!
They learned that the most important number in their personal economy was their net cash flow [Income - Spending]! This was the one number that, if they made up their minds to maintain awareness and protect, would change the trajectory of their lives forever!
A New Plan (A-Plan)...
After Joining The Wolf Pact, Craig and Sarah started thinking like investors instead of tenants.
Now their plan is the earn enough profits in real estate to not only purchase a home but more importantly - create long-term wealth!
As Certified Wolf Pact Members, Craig and Sarah were able to prove they had positive cash flow, thereby solving the root issue of any and all credit problems, and position themselves as Home Buyer Partners in the home they were renting.
What Is A Home Buyer Partner?
Even though Craig and Sarah are still renting their home (which happens to be a deal that they found), as Home Buyer Partners, they are much more than tenants. In fact, if one insisted on labeling them as tenants, the better term would be "super tenants." This would be the case because the odds of Craig and Sarah avoiding any credit issues have increased exponentially due to the fact they are thinking like investors as opposed to consumers.
In The Wolf Pact, we prefer to think of our Home Buyer Partners as "Occupant Investors" for two simple reasons;
They are partners in the deal, playing a vital role, thinking like investors, and sharing in the profits.
They have a vested interest in the project's success, along with all other participants.
In short, Craig and Sarah discovered the secret to compelling a landlord to pay them to rent their property.
Think like an investor and bring something of proven value to the table (Cash Flow and/or Future Leveraging Power) and seek to contribute to the project's success!