hey what's going on guys today we're talking about civil rights the intro
going on guys Daniel one half of the Kwak mothers and who do we have here
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welcome guys today we're gonna be talking about business lines of credit
for real estate investing the fun stuff that's right the fun stuff so mellow
real quick give us a 5 second summary of what you talked about in the last video
with you going 0 to 2.5 million yep strategic partnerships and also
actually applying a business credit to help me get in a lot of deals so yeah
it's been good all right I love it and obviously you guys can check that video
out in some of our other videos that we have in our channel so let's go ahead
and talk about the topic at hand and guys before we do stick around cuz we're
gonna have a free gift for you guys at the end that Melo and my brother has
come up with so it's gonna be awesome stick around free gift at the end but
today we're talking about using business lines of credit business credit for the
purposes of real estate investing so obviously we've got to see the end
product how is this gonna look in the big picture why don't you share with us
how you've done deals as a real estate investor cuz you're invested in real
estate I do you know you do a lot of buying whole you do nightly rentals and
flips you know I seen you do a lot of different things how has business credit
and business lines credit affected your real estate investing career um it's
allowed it to scale faster than I would have ever thought so business line of
credit for me was something that gave me an hour opportunity to sort of diversify
that the famous word diversify my portfolio a lot faster in LA sooner than
I would have thought I'm the way that we utilize our lines of credit is we
leverage them in such a way where we are able to go out there assets whether they
be in value opportunities or you know short-term
holds we go after these opportunities to build value in these products these
properties and you know ultimately ultimately decide whether or not we want
to hold them term to nightly rentals and or sell them so yeah they've been
extremely helpful well let's talk about a specific deal because I know in your
career you've had to raise less money because of the business line of credit
strategy so let's talk about because I know you do flips let's talk about a fix
and flip one of the things that you have done differently because of your
knowledge and business credit versus somebody who will go out there get a
hard money loan and do the whole deal using hard money so the business line of
credit what it's allowed us to do it's actually allowed us to acquire six doors
in st. Louis in the st. Louis area one of them actually are one of our nightly
runners that really will but it's allowed us to you know put those
properties although along those lines at seven point nine nine percent which is
very cheap money which is very tough it's actually lower than I initially
planned to give one of my investors you know which was that ten percent but
seven point nine nine is relatively cheap the great thing about the line
that I think has the greatest benefit is that it functions in a way where you
know I'm being reimbursed for a lot of the the rehab costs on the oneis project
what do you mean by that when you say reimburse so typically with hard money
lending and in this way it functions similarly you are complete a phase of
the project and you can see this in an FHA 203k loan as well individuals if
you've had experience with that you know exactly what I'm talking about with the
fo FHA 203k once you're done with a particular phase of the rehab you would
so to say is initiate a draw request from that lender right which is our line
they'll reimburse us of work that's been completed so I have a phenomenal this
works great if you have a phenomenal relationship with your general
contractor my general contractors Alois estes worth shout out I know he's been
great he's actually allowed us to scale a lot faster because he's completing a
lot of these jobs and he set up on a payment processor like you know stripes
cougar um he has something with this Bank
and he allows us to satisfy our invoices via credit card hmm so we're not really
coming out of our own pockets with with cash right we're actually using more
credit to satisfy these invoices and once the work is completed then we go to
our lender they reimburse us so they give us our money back that we spent on
our credit cards or even the cash we may spend they give us that money back and
it satisfies whatever balance we have on our credit card so we eventually end up
smee - no no cash out of pocket it's more flexibility yeah
all right let's cash you need to raise that's phenomenal yeah less cash you
know and it's all about strategic partnerships you know if you you you
have to actually pick partners wisely if you have great partners this will work
if you have a great general contractor this will work and then you know
obviously coupled with some good credit you know it works so reminds man it's
been an amazing sort of tool resource - yeah and according to your your last
video you know that credit line really is leverage by the cash yeah by the
strategic partnership cash and so how long does that investor have to keep
that cash to have that line secured so typically if you individuals who have
$50,000 or more you know liquidity if it's in no matter what account just I
always tell individuals don't start moving the the funds around you know
because if you don't have an LLC set up or maybe you have an LLC set up you know
don't you know wait to start wait until you start shifting accounts I mean funds
in the counts you know because they'll be able to tell okay
let's count account belongs to this individual and then they could sum that
up so but if you begin to move accounts and you're trying to sort of transfer
large amounts into one account and it's unsourced then you'll have to wait a
minimum of 60 days before you're able to establish the line based on that new
liquidity all right new account so only 60 days
yeah only 60 days Wow that's phenomenal you know only 60 days and if you know if
you don't shift account I mean it could be as little as 10 days mmm you know so
it's good so now let's turn our attention to the individuals is watching
this video and saying wow I want to do exactly what he's talking about right so
I I have $50,000 I know somebody that melot is telling me that I can get
$500,000 and now he's telling me I can use it for real estate investing
purposes which is a lot of our audience so what advice and what action steps
would you give to that individual simply put you know we're excited right so
don't forget to do the simple things such as setting up an LLC or an S corp
or however the however it's going to be formatted so just figure out what your
model is going to be for having that line of credit established to that
business for real estate so that would be like the first step and then if you
don't have that that that liquidity right
strategically finding your partner's the individuals who are who would most
benefit from this strategy because this is a very unique strategy and it's a
very you know helpful strategies for individuals that are looking to start in
real estate right looking for value add opportunities and maybe maybe to turn
over an asset quickly or maybe to you know purchase on the line you know about
build the value into the asset and then later refinance you know to hold it
longer term you know that's actually a strategy for most people as well so
those would be the the foundational steps that I think the individuals need
to take in order to establish this line and just not forget to do this the
simple things making sure that you know you have everything checked off that the
operating agreement between partners if you're gonna do a partnership model that
the operating agreements clearly spells out things that was the part of the
process that my partner and I had the the most difficult time just because it
wasn't set up properly so just making sure that it's set up properly you know
between the partners and if you have any questions about that feel free to reach
out I think the email will be in the link below or go to our website at
wwlp.com for that info just making sure that those steps are right so it's
definitely not simple yeah it has to be them properly there's a lot of steps
paperwork a lot of things I could go wrong yeah absolutely absolutely you
know to that point you have a company that's owned by a hedge fund right so
individuals are like hey what paint can I go to it and figure out this you know
do this well that's the thing they're you know this hedge fund they are you
know looking to help real estate investors out by
establishing a line of credit to them so that they can go out and make their real
estate dreams you know reality so definitely you want to be you
know cognizant and good stores over the money that they have and you know
respective of their time and efforts you know to to offer a product like this
yeah right which I think kind of leads us to say the free gift that we have
offering to you guys which is a free business credit checklist absolutely and
that's actually for you so you're saying go to the person watching this video go
set up the LLC OCLC right what what else do they need to before accessing the
business credit check set of the LLC make sure that you have the fidelity
minimum right if you have more than that then that that's fine or find somebody
that does find some workers I know you did you found other people that had
$50,000 remember I had I found several partners that there were more than
qualified and when I told them that there's a possibility that you may not
submit any of your own cash they were really pretty to that I did find out the
individuals who do have it if you don't if you don't know already and establish
the LLC with that person if you if you don't have an LLC with them and then
yeah reach out it's it literally is that simple yeah yeah it's an absolutely so
tell us more about this business checklist it's a business line of credit
checklist business yeah business credit checklist tell us more about that what
are they what are these people exactly getting for Complementary the business
checklist is something that Sam and I developed that helps individuals who are
sort of more guided towards a organic process of building business credit
right so it helps them to do things that it helps them look out and also along
the way of establishing business credits established things that you know most
lenders won't tell you that you need to have established so that starts from
Duns number you know a high n which is free all of that stuff is free you know
don't you know don't pay anyone to do that free stuff getting the right net 30
accounts getting the right vendor accounts getting website you set up
properly getting a proper phone number email business email those little things
that you know a lot of times can help really jumpstart so if you're on that
that phase of your investing career where you say well I have three to five
months where I could spare actually organically building up so that I could
build to a position or a place where I could have unsecured credit cards on the
my business that's not personally guaranteed then this is a track for you
you know this is a track that will really help you I started out on this
track in March I've been able to secure from my business personally about
$70,000 since then um in business credit cards that I've been able to use a 0%
interest for my business that'll you know also help to you know pay a
subcontractor to do write things on the new and you pay for dinner last night
that's how powerful this the strategy yeah I play for this morning this
morning right that's whoever basketball yeah exactly right yeah all right so
guys check that out guys the business credit checklist super duper important
if you're trying to start with business lines of credit and do exactly what
Melvin is doing now of course when we're talking about the topic of using
business credit for real estate investing we can't forget the real
estate investing part you know people have to be educated on real estate
investing because well it's a powerful tool yeah all right but what great power
comes great responsibility right we need to know how to use those business types
of credits properly and Mello definitely has learned how so guys along with the
business line of credit checklist the business credit checklist guys in the
link in the description below there's also a real estate investing workbook
that I actually came up with and guys I want you to use that workbook to test
out your knowledge right so you the business credit is the capital
absolutely the real estate investing is the knowledge and the deals right you
bring those two together capital and deals you've got a formula for success
absolutely absolutely out and I hit here you know with the the capital you know
it's the currency cash is currency credit is currency is to peel it and how
it's how we will did you know so to say you know fun fact all of these projects
on these lines have allowed me to be in these six projects and no more than five
I think we're last time we calculate I was in at five seventy nine and our
appraisals came back at one point three now we know that those are subjective of
course but you know that's a astronomical leap from us being able to
invest via credit or I was to cash and then having that that that huge gap in
terms of profit so I mean we're all in the game of real estate for profits and
it just doesn't get any better than that so definitely
take advantage of the workbook because you know without the knowledge I would
have been able to be in a position to do these sort of things so absolutely and
the workbook guy this actually has free it is free but it also has a simulations
and exercises it actually includes deals I've actually done in the past so you
guys are getting real-life experience and I don't know about you but I know
for me and also free we learn best by doing absolutely right we learn best by
doing so again guys check the links in the description below for the business
credit checklist and also the real estate investing workbook both are
completely complimentary our gift to you and until then guys we'll see you in the
next video have a go