How to Run Someone's Credit Report.

make sure to stick around until the end so that you can take away one of the big bonus tips that's going to help you make sure you're not leaving any holes when you run somebody else's credit because I'm going to show you exactly how to run somebody's credit within the next 10 minutes when it comes to applying for your rental property [Music] have you ever thought about doing property management well running somebody's credit is a very crucial part of that well let me give you the story of a new client sherry I'm a real estate broker and sherry came to me and shared this story with me I thought it was the perfect reason to make this video to teach you how to run somebody's credit when sherry moved out of her first house she decided to turn it into an investment property rather than sell it within two days of only a sign in the yard she thought she struck gold she found a doctor from out of the area and a nurse local to the area that she lived in and thought this is perfect I got a doctor and a nurse that want to rent my place what could be better than this they came in their scrubs they were incredibly nice and they gave her credit reports that gave sherry here you go you're our credit reports eight hundred plus were awesome and gave sherry cash right away and said we'd like to give you the security deposit right now so we can make sure we can have the first dibs at this property while we go through the application process and whatever and so nobody else can see it this is pretty standard so to Sherry a first time property manager this sounded like gold here's a tenant that kind of already knows what they're doing and she doesn't really know what she's doing so perfect this made her feel like her advertising work was magic and being a property manager was next to the easiest thing that there could possibly be she knew running credit was important but they already brought their Credit Karma credit reports they looked legit after all they had all the logos they looked like the actual credit karma credit reports and everything was set sherry also knew that it was kind of a hassle to get set up with credit bureaus and she's heard stories about how people had to get their offices inspected to be able to run credit for people so she thought yeah this is good enough well nine months later sherry had her house back accept eight of those nine months she went without collecting a single payment on a property that was renting for $3,000 per month and she spent those eight months evicting the tenants who ended up leaving over eighty thousand dollars in damage because their socials were fake she couldn't even sue them it turns out the only thing these medical professionals were able to dr. were their credit reports so here's exactly how to run somebody's credit the correct way oh and heads up for this method you do not need to have your office inspected you do not need a locking filing cabinet you do not need to go through a lengthy approval process with one of the credit bureaus or some kind of other third party company that is going to set you up to be able to run people's credit we're gonna make it a whole lot easier and you're gonna get it all right now number one the most important thing to do is make sure you get a signed credit application I've got a sample here on screen and I also put a link to this sample application down below in the description you'll find that link right below the link to my real estate investing course which is guaranteed to make you more money than the cost of the course which is pretty inexpensive or your money back you can personally email me when you accept the application from the tenant I highly recommend you take a nap on your phone like scanner pro or whatever and take a picture of the app right away so you can scan it and file it email it to yourself or whatever you need to do because the odds are if you don't do that and you're anything like me you'll end up putting the papers on a pile and you'll scan them six months from now but you may have already lost half of them very important when you take this signed credit application check their driver's license in fact go ahead and scan their driver's license as well I like to scan front and back and then compare the signature on the driver's license to that on the application this sounds extreme and that might make you feel uncomfortable but think about it this way when you're renting out your property the tenants are trying to court you they're trying to get you to rent the property to them so this is very normal you're in control at this point when the tenants have the keys that's when they're in control that's why they say possession is nine-tenths of the law number two collect cash for the credit screening fee do not take a check because if they bounced the check you're stuck paying bounced check fees I've been there also make sure to check your local and state laws regarding the maximum credit screening fees they're different for every state now go to my smart move comm this is an officially sanctioned website by TransUnion once you register start a new report enter the tenants email address say yes that you have a signed application this is very important do not skip the cyant a poor credit screening there are too many privacy laws out there check with an attorney I'm not then pay for the report yourself since you've already collected the cash this is okay note this is not sponsored I just highly recommend the $40 option you want the full credit report and the extra $2 to get income insights you may as well once you've sent the tenants email let the tenant know hey your application is waiting for you note once you set this up and honestly even with registering you could go from the registration process and the main webpage to sending a tenant their credit report application portal within under five minutes if the tenants fast you can have the credit report back within 10 minutes of you sending this email now I know you're thinking wait a minute it's just gonna email them a link or something to fill out I mean they could just put anybody social in there you might be right about that but the tenant gets challenged with not only their social their date of birth but also those regular Social Security check questions like mother's maiden name did you ever live at this address or that address so it becomes a little bit harder to fake the identity but I'm gonna give you another few steps to make sure you can really protect yourself once the application is complete you'll get a report back with background criminal eviction history income insights address history and most importantly their credit report I personally disregard the credit score I go into detail in the credit report going into detail in the credit report is actually something that I'm going to delve in-depth in my real estate investing course because there have been cases where I will approve tenants based on what I see inside of the report whereas maybe otherwise they wouldn't have gotten approved and vice versa sometimes people have high scores and there's no way in heck I would approve them because of what's actually inside the report so looking at the score itself I don't recommend now this step is extremely important it's very important that after you get the report you call trans unions customer service number and reference the report ID now take your application and ask the customer service rep I'd like to verify the social security number that was used to fill out the online portal application they'll say okay go ahead give me the social you'll give them the social that's written on the paper and they'll either confirm or deny that this social is accurate I personally recommend writing down the name of the person you've spoke with at the customer service center and the date and time you spoke with them and write down a little note verify check whatever now one of my last steps is one of my last challenges for the tenant when everything looks good I ask the tenant to bring their social security card to the lease signing or when I meet them to pick up their security deposit I always pick up security deposits in cash because I'm taking the rental off the market and I want cash or a cashier's check I do not want a personal check if I'm taking a property off the market when I meet with them they need to bring their actual social security card not a copy nothing then I'm going to compare the name and number that they gave me on a social security card to their application at this point they've answered the challenging questions their picture ID matched them sometimes I even asked tenants to bring their passport have a second form of picture ID they actually have the social security card they were able to answer their questions correctly and I approved of what I found in the credit report usually I feel pretty comfortable at this point but sometimes when I'm questioning a tenants authenticity I will take it a step further and this is the bonus tip for an extra ten dollars I will do the same process with Experian just Google Experian landlord tenant credit check it's only $10 at Experian because it doesn't give you all of the additional insights but I like running their credit at Experian as well because a lot of credit cards only report their data to experience so somebody could be severely delinquent at Experian but have a relatively good score at TransUnion I don't know if they crisscross their reports at all I'm not an expert in this I'm just a real estate broker so definitely take my advice with a grain of salt but I really hope this helped you and make sure to smash that subscribe button and click the links below you won't regret

Channel: Meet Kevin

Views: 38,013

Rating: 4.9079404 out of 5

Keywords: credit screening, tenant credit check, check tenant's credit, credit report, tenant credit report, landlord, real estate credit check

Id: RnkrXihHAco

Length: 8min 53sec (533 seconds)

Published: Wed Oct 24 2018