No Credit, from Eric Ross

August 3, 2007 |

 I guess I'm looked at as a deadbeat. In my personal financial world I have hardly any credit. I buy all my cars in cash. I still rent. I'm liquid except for the money tied up in land and commercial buildings I own. The only credit is a revolving credit line for construction loans and business needs but that is not personal. I have super low leverage with my clearing firm on purpose.

When the '99 markets came down I watched people lose their entire lives, built on credit. I lost more money, as did most of those at my daytrading shop, than many will earn in three lifetimes. Lucky for me the money was not around long enough for me rack up credit. I walked away debt free except for my Audi, which I paid off right away.
I had to downsize but at least I did not lose boats, cars, homes, lofts, and wives. When I entered the group of land speculators, became one of them, the first thing they taught me was to stay out of debt in your personal life.

Buy and hold land and buildings. Flipping is for those who come and go in the business. The one thing that enabled me to obtain business credit was my liquid worth and the proper bank.

A very simple solution to being in debt is to make more money which in return will create higher debt. Just look at all those shiny new cars and big homes.


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