How to build business credit for real estate
investing? Do you want to be just like Noelle? Are
you ready to be a millionaire real estate entrepreneur?
Well, I'm going to tell you exactly how to use business credit to get all of the
real estate that you need for investing so that you can have the life in the
business that you want and deserve. Let's go.
So, let's first talk about real estate investing and all of the benefits and
the things and the reasons why you would want to build
business credit so that you can do real estate investing. Because that is
so important. When we are talking about building
business credit for real estate investing, we have to first know about
real estate. And when it comes to real estate
investing, there are so many benefits that you're going to be looking for.
You're going to be able to get passive income. You're going to be able to
increase your personal wealth. You're going to be able to actually make
money off something that you have a debt on,
okay? So, a mortgage. You're leveraging mortgages
to actually make money. Additionally with rental properties, the properties are
going up in value. And they're increasing and then the
tenant is paying the mortgage down. So, even after you've had rental
properties for just a few years, it's pretty easy to walk away with very
large lump sums of cash. I've literally sold some of my rental
properties and walked away with hundreds of thousands of dollars
after the tenant paid the rent. Think about that. So, they paid the mortgage
down, I wasn't really paying it. Their rent
covered the mortgage then the property value is going up, I make
the money. Bam! So, now let's talk business credit.
The big difference between business credit and personal credit
are many. Many of us are already familiar with personal credit. I'm sure you've
heard of you know experian, transunion and
equifax. Well, our personal credit usually is all
of the debts that we have in our personal name. So,
student loans, credit cards. If we buy a house,
things like that. People will look at our Fico scores and
see what our personal credit is. But with business credit is much
different, okay? These are not credit cards that will report or credit that
will report on your personal credit card. Your business is a separate entity, okay?
So, because you create an entire entity, I'm
going to tell you exactly how to do that. You will actually have an entire
different process. So, instead of reporting to
equifax, experian and transunion, on the business credit side, we have Dun &
Bradstreet. We have equifax business and we have
experian business. And they are much different. So, your
personal credit cards will not just report on your business report.
And your business debts will not report on your personal credit.
And this is awesome, okay? This is probably one of the biggest mistakes
that I made when i started investing and
building my own business. I started relying on too much on my
personal credit and my credit score tanked. So, as I
started using my personal credit cards to
you know buy my LLC for example or to buy
marketing for my business, my credit score started to go down.
But with business credit, it is much different.
So, let me tell you how you will start to build business credit. It is actually
very simple and is probably the biggest mistake (like i said) that i made in my
business. I waited way too long to start building my business credit.
And because you're watching and listening to this, you're probably not
going to make the same mistake. So, the first thing that you're going to
need in order to establish business credit of course
is a business. So, you need a legitimate business, you're going to have to go to
your secretary of state and get your business registered. Either
as an LLC or as a corporation. You usually have
3 different options. Usually can do an LLC
which is a limited liability company or you can do a C
corp or an S corp. Now, Noelle is not a tax advisor or an attorney. So, I'm not going
to advise you as to which structure you should choose.
I will just tell you though in most cases, I have done an LLC when i got
started. The next thing that you're going to need
is you're going to need a business address, okay?
So, in order to really open up some of the credit that i'm going to tell you
about later, you're not going to want your business
to be established from your home. Now, of course, in a pinch, if you don't
have a business office or you don't want to lease space, you can
just use your home address. But I suggest getting a virtual office,
okay? I'm going to give you a link down below
to companies that do some virtual offices at a very, very cheap price. In
fact, I've had some where it's only $9.99 per month.
And that is in my business's address. They collect my mail for me
and then if i want to go buy and pick it up, I can. But that is my business's
address and I'm not using my home address. You're going to need a business
phone number. Again, this is super easy and simple to get.
You can use companies like grasshopper or freedom voice.
You don't want to use google voice. I know people say that's a great way and
it's really inexpensive. I think in some cases it's free.
But the problem with a google number is you cannot list it as your business's
phone number. All of the business directories will
reject that phone number. So, use one of the companies that I'm talking about. And
again, I'll put some links below for you. The next thing you're going to need is a
professional email. So, of course when you every business needs
a website. So, you're going to get a website. You'll buy your domain name.
So, let's just use a quick example. If my name the name of my company was ABC
properties, I would see if I could buy the domain
abcproperties.com, okay? And then when you buy that domain and you get the website,
again, super inexpensive. You can get domains
for like 7.99, super cheap. You own them and then you
can also get a business email with that same domain name so you
could get like Noelle@blahblahblahproperties.com. Okay?
Those are the main things that you're going to need before you can ever say
that you have a full business to start getting business credit
established. Once you have those things established, getting a Dun & Brad
street number is very easy. A D&B number. Remember I said to you earlier
that there's three different credit reporting
agencies for business credit. So, just like with your personal credit,
you have transunion, equifax and experian. On the business credit side, you have Dun
& Bradstreet, experian business and equifax business. But I will tell you
this: The main reporting agency in the
business credit world is Dun & Bradstreet and to get your
dun and bradstreet number, it's pretty easy and simple. Oops, I
forgot. You're going to also need an EIN number. After you get your
LLC established, go ahead and get the ein number which stands for
employer identification number, that's E-I-N.
And you can go right to irs.gov and get that for free.
So, those are the main things that you're going to need. You'll get those items,
you'll go to dun & bradstreet. You'll get your free number,
boom! You have the main components of what you need. So, let me
tell you the next thing. So, now let me tell you how you're going
to take all of this awesome business credit and how you actually start to get
real estate with it. Because that is the fun part. So,
for many people, we have to think differently. When it
comes to buying real estate, we usually think of it in one way. But as
real estate investors, we think of property much differently. We
want to make money. Like I said, this is about passive income,
this is about buying properties that is going to increase in value so you can
get those lump sums of cash. And the easiest way to do this as a real
estate investor is to think like a real estate
investor. What we do is we seek out people with property problems.
People that are you know behind on their mortgage payments or they're going
through divorce or they're going through a bankruptcy
or they got relocated and they don't need the house or the home is in
disrepair and needs lots of repairs or something like that and they don't
have the money to fix it. So, in other words,
they're having an issue with their property.
And in many cases we're able to pick up these properties for pennies on the
dollars. I've literally been able to buy
properties for the past due amount on the mortgage just using that as
an example. For example, if someone is past due on
their mortgage and they're like 3 months behind,
I've been able to get those properties for just a few thousand dollars because
all I had to do was have the money available to catch
those mortgage payments up and then take over those payments.
And this is all possible with business credit, okay?
So, you'll start to think like an investor, you'll start seeking out people
with property problems and then you will market to them and
those are how we will get those properties and you'll have the funds
already available from your business credit cards, from your business lines of
credit and things like that. Again, using other
people's money and helping people that have property issues.
Get out of those properties and then you take those properties over.
Or in many cases, say for example you want to flip those properties to someone
else looking to an investor like, "Noelle, i like to take those properties overs as
well." And if you want to wholesale to other investors that can actually fix
and flip the property, that is what you can do. I have a whole
video on how to wholesale, I'm not going to get into that in this video
necessarily. I'll put a link below on how to
wholesale so you can watch that video as well. But it's an
easy way to start picking up 5, 10 thousand dollars on properties that you
never own, you never have to use any of your money.
I'm telling you how to do that. And you don't even have to use credit,
okay? Again, you can use your business credit or you can use no
credit at all. You can flip that property in that contract to someone else and
pick up five to ten thousand dollars. So, super easy. But the key to it is getting
that business credit, start getting those business trade lines
and things like that. And then knowing that you're going to be
thinking like an investor and you're going to be able to get
properties for pennies on the dollars just by
targeting people that have a property problem.
Okay. So, now that i gave you all of that great information and told you
how and what you're going to do when you get the business credit, let me tell you
exactly how to get some business credit started
quickly. So, like I said, you already established your business, you got the
LLC, you got the EIN number, got your phone number. And I'm telling you,
you can get this stuff done in one day depending on what state you're in.
Your LLC or your S corp or whatever that you're registering the business with,
in many cases, you can do that online, okay?
So, depending on what state you're in, you can do it all in a day and get this
stuff done. But if you're in one of the states where
it takes a little bit longer, we're talking about maybe
1 or 2 weeks. So, this is not a long process guys. So, once you have those
things started, the easiest way to do it is there's 3 companies that I know
specifically that report to dun & bradstreet to
give you some (again) business credit trade lines.
The first one that I absolutely love do business with them all the time (this is
not an affiliate, i'm not being paid for this)
is Quill. That's Q-U-I-L-L, quill.com. You can set up a business account with
them. And they usually... Even if sometimes they'll give it to you
on the first account, sometimes they give it to you the second go around but they
will give you a vendor account. Meaning like a net.
30. Where they will allow you to buy things and you do not have to pay for it
for 30 or 60 or 90 days. They will invoice you.
And they call it either a net 30 or a net 60 or a net 90 depending on how many
days that they give to pay you. So, quill is a company like that, okay?
ULine. ULine is another company. U-L-I-N-E. Again, no affiliate links. This is just me
telling you for free. You can go to them, you set up your
business account, you can purchase things from them.
Even if you do a cash purchase and it's over $50 and you've done it properly,
they will still report that as a cash transaction on your business checking...
I'm sorry on your business credit report. So, it is amazing. And then
another company that I know is Grainger that's G-R-A-I-N-G-E-R,
grainger.com. Again, you set up a business account with them. You can purchase
things from them as long as you buy something that's at least $50.
They have things for your business. You can
buy printers or ink or cleaning supplies. You know, you can
buy things that you need for your business, I suggest.
And again, if you spend more than $50, they will report to the dun &
brad street credit report, okay? So, that's 3 companies right there
completely free that you can use. But let me give you
one more bonus because I just have to. Because Noelle always telling you
everything, okay? Get a business checking account, okay? I know I did not say that
but this is the secret, okay guys? This is the
secret. Many cases now you can go get a business
checking account and they will offer you business credit cards right on the spot.
Okay? This is totally new. Trust me, this does not exist when it's when I started
businesses five 10 years ago. It was actually unheard of for
a bank of America for you to open up a an account with
them, a business checking account which you need to do anyway.
And then give you a business credit card or business line of credit right off the
spot. So, this is the opportunity. And I don't
want you to miss it and I don't want you to say no to those offers.
Those are business credit cards. Even though they check your personal credit,
the only thing that's going to actually happen on your personal credit is that
inquiry. Once they give you that business
checking, I mean they give you that business checking and you get that
business credit card, that credit card as you're swiping it is
not reporting on your personal credit killing your credit score up and down as
you use it. In fact, it's helping you and it's building your business
up. Because usually with business credit, business credit cards,
business lines of credit, (1) they give you higher limits. So, you know, usually
with personal credit say for example, you
don't have much they give you a capital one card for example.
Sometimes they give you only 500 or 1,000 dollars. Well, in the business
credit world, they usually start you off off much higher, okay? Because they know
your business you need to actually buy things. And you know, so they give you
usually higher limits. That's 1. 2, they increase those limits
a lot faster. So, just giving you an example. I have a chase business ink card,
for example. Paid it for 6 months and then called
them up and asked for an increase and they doubled my limit, okay?
So, write off after, just 6 months of paying them on time.
And I'm going to tell you the secret and why that is. Because in the business
credit world, they're looking at something different than they are in the
personal credit world. In the personal credit world, they're
looking at your debt to income ratio. They're looking at how much
debt you have to the income that you make. But on the business credit side in
the business world, they're looking at how well you can
manage your debt. So, in other words, if you're able to
show that you can pay your credit cards and your lines of credit on time,
they'll gladly give you more money for your business to fund your business so
you can make more investments in your business,
make even more money and then pay them. So, it's
totally different. They are not the same. Do not listen to anyone that tells you
that they're saying. But the great thing about is if you have great personal
credit is you can immediately start leveraging
your great personal credit. Let them look at your credit score
and then give you those business credit cards and then you don't even have to
worry about getting or using your personal credit cards in your business.
It's like life-changing. Okay. So, if you are wanting more information
and you want to get a full training, please go to noellesfreetraining.com.
I've created a complete training completely for free. It's about an hour
long. It was a little bit too much to put here.
It will teach you my exact formula for finding deals and making money
in real estate without losing money. And again of course,
like my channel, subscribe. Click that little notification bell so you don't
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all the tools and all the resources that you need to be successful.
This is Noelle. To your success.