How to use business credit to buy real estate?
This is probably one of the smartest things that you can do when buying real estate.
Trust me on this one.
This is how you're going to be able to go from zero to 6 or 7 figures and scale your
business and ways that you could not even believe.
Especially not with your own money.
This is the key.
You got to do this.
But I got to tell you exactly how to do it.
The truth with none of the fluff.
Let's go.
I'm going to tell you the step by step blueprint to building business credit quickly and legally.
I'm going to share with you some hidden secrets to reduce your personal risk when investing
in real estate.
And I'm going to share with you my insider secret that I've garnered over 20 years of
real estate investing and working in the mortgage industry that has taken me from living in
my parents basement to living in a 8-bedroom mansion.
So, let's first talk business credit.
Because this is a thing that I was really late to the party with.
Business credit is something that is different from your personal credit.
It literally reports only to the business credit bureaus which is Dun & Bradstreet,
Equifax business and Experian business.
And the great thing about business credit, it allows you to create an entire credit report
and use your business which is an own entity that is living and breathing and has it's
own credit report and it's own tradelines and it's seprate from your personal situation.
And the great thing with business credit is it allows you to get more funding a lot faster
and doesn't report on your personal credit.
And I tell you another great thing that I learned about business credit.
And again, I was super late to the party.
That's why I'm sharing all this with you now.
I did not realize that when you have good personal credit, at one point, I have really
terrible personal credit.
Like I told you, I started of investing in real estate after I had lost everything.
I was in my parent's basement.
I have multiple foreclosure.
My kids, my husband, we were just total losers.
We had lost everything and we had like...
It's like a truck hit us.
We did not know what happen when the market crashed in 2009.
So, once we have really bad credit.
I could not just go and start buying real esate again.
I could not just like start applying for mortgages and get more rental properties.
And this is when I learned about wholesaling which did not require me to use my credit
or my money.
But I was also able to start building business credit and leave my personal credit alone.
So the thing with business credit is it will take what you do and those tradelines that
are in your businesses' name and it reports and it gives you a score.
With Dun & Bradstreet, a great score is 80 or above.
It's called a paydex score.
P-A-Y-D-E-X.
And again, this is much different from your FICO score that reports on personal credit
report.
You know, 600 and 700 and 800 and all that other stuff.
Your Dun & Bradstreet score will go from zero to 100, the same thing with Eperian and equifax.
And again, the higher the credit score over 80, that's a good business credit.
And this will allow you to start getting business funding.
So, the great thing about business credit...
And this is where I learned.
Like I said.
I was in my parents' basement.
I started investing in real estate in 2003-2004 in Atlanta.
We split in some houses while I worked and I did not know what I was doing.
So, when the market crashed in 2008-2009, we basically lost everything including the
house we were in.
We didn't know what we're doing.
We didn't know how to keep it going and we didn't know about real estate investors that
could help take us out of foreclosure and help our situations.
So, we ended up just giving all those properties back and we moved in with my parents in their
basement in Connecticut.
So, when I was in my parents' basement in Connecticut, I ended up getting me a coach.
And he thought me about wholesaling.
And in this process is where I realized that real estate investing was much different than
what I was doing.
I needed to buy properties at a low price and sell them at a high price.
Now, again, I thought I knew that because I have found properties and I had tenants
in them.
But I had no equity in the properties, I didn't know about finding properties that were off-market.
I didn't know about finding people that have a property problem and getting those properties.
And I surely didn't know about getting properties without using banks or lenders.
This is all things that my coach taught me.
But What I taught myself after started doing some wholesaling and some fix and flipping,
I got turned on to business credit and that catapults my business to the next level.
I started to be able to get credit and credit cards and lines of credit and all these different
things in my businesses' name and then I could buy even more properties.
And I was a machine.
There is so much you can do in real estate if you have the money to do it.
And business funding is going to unlock that.
That is the key to unlocking all of the funds that you need to get lots of rental properties.
So, step one.
When using business credit to buy real estate, step one is you need a business.
Okay, I know that sounds super simple and you're like, "Thank you, Noelle."
But yeah, you need a business and it has to be registered with the secretary or state.
You're going to need an LLC, a C corp, an S corp or a DBA.
Something that's recognizable as a true business that people can find.
The next step is you're going to have to get your EIN number.
You need to get a professional phone number, a professional email and a professional website.
Those are the minimum things that you are going to need before you can establish business
credit.
And this is super easy to do.
Literally, I have students that have done this process in one day.
Okay?
And I'm also going to give you a link below to INCFILE (I-N-C, FILE) that can help you
get this all set up and done for you, free of charge.
So, again, this is very expensive.
But you need this.
And that is step one in order to get business credit.
Let's talk about step 2.
Step 2 to building business credit is to purchase something in the business' name.
You have to get some account set up.
You have to get business credit established.
I'm going to give you 3 companies that literally lend or give small accounts to new businesses.
And that report to Dun & Bradstreet which is the major business credit reporting agency.
Those companies are ULINE, QUILL (Q-U-I-L-L) and GRAINGER (G-R-A-I-N-G-E-R), Grainger.
Those 3 companies will allow you to get a business account set up and you can purchase
things from them.
If you spend a minimum of $50, usually they will either let you a cash transaction or
they will go ahead and give you an account where they give you a 30, 60 or a 90-day account.
And then they will report that account and that transaction to the business credit reporting
agency.
And bam!
If you do all 3 of those accounts and they all report, in a couple of months, you have
3 business tradelines.
It's just that easy.
That's step 2.
Next thing you want to do (and this is super important and people miss this) is get a business
checking account.
Do not hesitate.
I don't care if you don't have your business set up or anybody to actually put money into
that account.
Go ahead and get that business checking account.
Go ahead and do and start putting into the account regularly.
You can take your own money form your job and start making regular deposit into that
checking account.
And trust me, you want to do this because many lenders will ask to see the last 3 months
of your business checking account statements.
And this is a way to start showing that your business has some transactions and that your
account is active and you are growing your business.
Next step: Once you get your business checking account, go ahead and get those business credit
card.
In many cases...
And this is a new phenomenon.
This did not exist 5, 6, 7 years ago when I first started in business.
Many times now, when you go to open up your business checking account, they will offer
you a business credit card or business line of credit.
Take them.
Okay?
I know you've been told all this wrong information to be afraid of debt and things like that.
But rich people, millionaires, people that make money in real estate, we are not afraid
of debt.
Go ahead and get that debt.
Especially if you don't need it.
Trust me guys.
The best time to borrow money is when you don't need it.
So, when they offer you those business lines of credit, those business credit cards, go
ahead and take them because those again will report to your business credit report and
you're helping to build your business credit.
And then last but not least.
We are to the last step.
Go ahead and buy real estate, okay?
There are 2 different ways that you can use.
You're going to have to either get a hard money loan and the money that you have now
gotten with the credit cards and and the lines of credit that you established and those tradelines,
they will go ahead and they will lend you money.
You can do a hard money loan for a property if you need to fix and flip it.
Or if you don't own any property at all, you can get your first property.
Buy a primary residence.
Think like an investor.
Buy a dupplex or triplex or quad, a 4 unit.
Buy a property that you are going to either live in one of the units and rent out the
other units or if you buy just a single family home, move into it, live into it a few months
or whatever and then make that into a rental property and then do it again.
You want to start buying rental properties and getting properties that you can either
buy now and sell later for a little bit of profit or turn into a rental property.
It's just that simple.
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This is Noelle, to your success.