Do you know of someone that could benefit by becoming a real estate investor? Perhaps a relative or a colleague of yours that wants to get their feet wet but something is holding them back? After all, you’ve shared your success with them and they seem interested but for some reason they neverhelping by cosigning take the next step.

When someone wants to be an investor and can see your success but doesn’t do anything about it, then it could be an indication that there are legitimate issues that are holding them back.

One of the primary issues concerns credit. A person’s credit report is one of the most private facets of someone’s personal life. It’s a reflection of their responsibility and their ability to manage their financial affairs. Yet credit isn’t something that your buddy really wants to sit down and talk to you about so you may never really know there’s a credit situation but you have an idea. Should you volunteer to co-sign with someone who needs your credit help?

Everyone at some stage of their lifetime needs a helping hand. And when someone has credit problems they’re typically too embarrassed to ask for help and even if they weren’t they wouldn’t know who to talk to. But if you do volunteer to co-sign understand that banks in today’s market won’t allow your good credit to overcome someone else’s bad. In some instances co-signing can help when your income is needed when someone applies for a construction loan in order to build a new rental property or a flip but as it relates to a credit report, the poor credit can’t be ignored.

It’s a very good thing that you’re willing to help someone who needs a financial lifeline but understand going in what banks can and cannot do. A bank must still account for the other person’s negative credit.