APPEARANCE OF WEALTH
section is in no way to be construed as an endorsement by The
All Solutions Network
of the actions we are now going to discuss.
Rather, it is to make you aware of certain facts that many have used in
order to achieve their financial objectives.
have all heard stories of the "mob" and their two separate sets of
financial books; one for themselves, and one for anyone that they may want to
mislead. Some people do the same
thing for their personal finances. By applying the following facts, they are
able to create two separate sets of tax forms.
One set that shows their actual income and expenses, which goes to the
IRS and one that indicates a much higher income that is then used to show extra
financial strength to a lender. The
purpose, of course, is to convince the lender to go along with the business
venture. What are the principles
that make this possible?
1) Due to confidentiality statutes, a lender
cannot divulge, to anyone, any personal information that is given them.
Unless, by your written authorization or court order, they won't divulge
it, even to the IRS.
This means that a person could claim a $50,000 income to the lender, but
actually earn only $25,000 and not have to worry that the IRS thinks he is
cheating on taxes.
2) Without written authorization from the
taxpayer, the IRS will not divulge the contents of the tax return.
This means that, at least, as
to self employment income, other than the tax return received from
the borrower, the lender has no way to verify what the borrower's taxable income
situation is such that the IRS does not know what is told to lenders and lenders
do not know what is told to the IRS. Here's
one way that this information has been used...
Recently, there has been
Form 4506 which Mortgage Lenders
often have you sign and send to the IRS for verification that your income
statements match what the IRS has on file. This,
however, is rarely if ever used for any other type of loan such as auto or
Recently, there has been Form 4506 which Mortgage Lenders often have you sign and send to the IRS for verification that your income statements match what the IRS has on file. This, however, is rarely if ever used for any other type of loan such as auto or personal loans.
"Joe" had a job that paid him $25,000 per year. But to get the financing for a certain endeavor, he needed to show the bank an income of $50,000. Here's what he did
went to an accountant and told him that he had not filed taxes for the last two
years. And since he was afraid of
what the IRS might do, he wanted to get it taken care of.
gave the accountant his W-2s from his job and said that he also had a mail order
business that netted him an additional $25,000 for those years.
He gave a gross income of about $35,000 with expenses of about $10,000. The accountant used the information to create new tax
returns. Joe then went to the
lender with photocopies of two years of tax returns that "proved" he
had the ability to repay. Since Joe
had good credit and "excellent income", he got the loan.
happened when the bank verified his employment?--
Since Joe did, in fact, have a job that paid him $25,000 a year, when the bank
called his job, that portion of his stated income was verified.
But what about the other $25,000 of income he claimed?
For that income, his mail order business put him in the
status of "self employed".
If you are your own boss, who does the bank contact to get information
regarding your income? You and your
The bank had no other choice but to make their determination on making
the loan based upon the documentation Joe provided. Namely, tax returns
and bank statements.
his bank statements fail to support a $50,000 a year income?
Since, Joe knew in advance that there may come a time that he needed to show
extra financial strength, he began creating the illusion of opulence well in
advance of the need. He already had
one checking account, but about six months before applying for the loan, he
opened a second account with a different bank.
to three times each month, Joe would make a deposits of about $500 from bank A
to bank B and then from B back to A. What
this accomplished was that at the end of each month when he received his bank
statements, each of the two accounts would show about $1,500 in deposits over
and above those he would normally have made.
This created the appearance of about $3,000 extra per month in income,
thus, backing up his claim of "self employment" income.
Although, Joe got what he was after, It's better to give accurate information to the lenders. Not only, is that the thing to do from a strictly moral standpoint, but giving false information on a loan application could be construed as an attempt to defraud the lender. If you make the payments, it is highly unlikely that it would ever be discovered, but one would have to decide if it were worth taking the chance.
RAISE YOUR CREDIT SCORE-- WITHOUT CREDIT REPAIR
today's credit conscious society, credit cards are almost a badge of honor.
They make check writing easier; they help to eliminate barriers to the
establishment of new credit and they substantially enhance your financial
prestige. However, those that give
you the most benefit, such as VISA or MASTERCARD, are often the ones that are
the most difficult for which to qualify. What
we are going to discuss in this section is, not only, how to obtain the cards, but
how to parlay them into a substantial amount of cash whenever needed.
If you have applied but been turned down, in almost every case the reason
is either one, or a combination of these three things:
1) Insufficient income.
2) No established credit.
3) Bad credit.
the problem is insufficient income, you simply need to show more income.
If the problem is either of the credit situations, the cards are still
obtainable, but first, a few words about credit...
are few people, who at one time or another, haven't had some type of credit
problems. Whether it was a matter
of being late on the payments a few times or maybe even the discontinuance of
any payments, at all. I know, from personal experience that it is easy to
have that happen; and from there, it's even easier to fall into the mental frame
of mind that says, "Well, my credit's already shot,
so why make it tough on myself? I'll
just pay 'em later.". If
you, or anyone you know has fallen into that trap, it's important to turn it
around. Right now!
though, the application of the many principles disclosed on the All Solutions Network
website, allow for many things to be accomplished even with the worst of credit
(see no down real estate), the
fact of the matter is that bad credit
always costs money! Whatever
loan a person may be able to obtain, the interest rates and consequently, the
payments are always higher for
someone with bad credit than for someone with good.
But no matter how bad the credit situation is, a person can start right now to turn it around. It may be a matter of eating out less or going to fewer shows, but there is usually a way to begin to make those payments. It may hurt. But it is essential to start immediately. If the situation is, in fact, impossible; if there is simply no money, call the creditors and let them know the situation, and if possible start making partial payments. But, at least try to do something to get moving in the right direction. Are you too far behind? Too buried? Click Here. .
matter how bad a credit situation is today, by making all payments in a timely
manner from this day forward, in two years, that person would be considered a
good credit risk. But
it has to start now. Otherwise, in two
years, that person will still be two years away from all the benefits that
belong to the credit worthy person in a credit conscious society...
about those credit cards.
If the bank thinks you have low income and bad credit, exactly why won't they
give you that CARD? Is it because
they are afraid that you might not pay it back?
But, what if you can guarantee that they won't lose money? You get the
this method is going to require about $300 cash.
Many banks will issue cards with almost no regard
rating as long as the person deposits as collateral an amount roughly equal to
the credit limit of the card being
issued. This means that you can go the
bank, explain that you are trying to establish, or reestablish your credit
rating and simply deposit the $200 and get a card with around a $200 limit.
TURN YOUR CARD INTO A GOLD MINE!
many people do not realize, is that it
is theoretically possible to obtain as many VISA or MASTERCARDs as there are
banks that issue them. These
won't be duplicate cards; each will have its own account number and credit
limit. How to use this bit of information to your advantage?
that credit card you just got? Use
it! But not for a night out on the
town. Go down to the bank that
issued you the card and get a cash advance of $200.
You now have a credit card plus, $200 in cash. What next?
Go to the nearest bank and get another card secured by deposit. Now, you have two credit cards;
one that is already at its credit limit, and one with $200 available.
You can now, get a cash advance on the second card and repeat the process
over a period of time until you have as many credit cards as you desire.
Admittedly, for every card you obtain there will probably be an up front fee
and, of course, you have to make payments.
So, why go to the trouble and expense of getting ten or fifteen?
After obtaining these cards, if you consistently, make the payments on time, your credit limits will be raised on each
and every one.
you have 15 cards each with a $2,000 limit, you have the capability of raising,
up to $30,000 through cash advances in only a couple of hours.
And, if you are consistently using the real estate
principles and looking for real estate investments, I assure you, you will
eventually come across a deal in which the ability to raise big money fast will
make you a bundle. So, even though
obtaining these credit cards will take some time, effort, and some money, it is,
absolutely, worth it!
Have a question? Need advice? Write to the Forum