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Don't make it so Personal - Build Business Credit |
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| Author: Tim Pfeiffer | Views: 769 | Votes: 0 |
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I have been investing in Real Estate in the Charlotte NC and Upstate SC markets for the past 2 years. It has been both rewarding but at many more times filled with challenges. I started off as many do with an excellent credit score of 720 and a home equity line of credit. What I most want to stress for those looking to get into real estate investing is not that you can't use your regular bank mortgages or even at times use your home equity as a line of credit or loan...
What I really want to stress with this blog is that you don't keep everything in your personal credit. Not just buy your investment properties with your home equity or bank mortgages that you have to personally guarantee, that means you have to sign it in your name and you have to supply you Social Security number. This means that all of these mortgages show up on your personal credit score! Have a lot of mortgages, this can bring down your credit score! Believe me it happened to me.
What I truly recommend and I am going to supply a number of resources here is to start your Real Estate investing business as a business... Start off by getting that LLC filed with your state and after confirmation of filing from the Secretary of State, file with the IRS to get your EIN number. In most cases, you can now do that right online at www.irs.gov. There are a couple of excellent sources to start building your business lines of credit and credit cards quickly. IMPORTANT NOTE: Business lines of credit and credit cards do not report to your personal credit report, they do not affect your personal credit!! Please check with the Business credit issuer when applying to make double sure, but in most cases this is how it is set up. Now the Business credit reporting agencies will see how high your personal credit score is (this determines in many cases, how high your initial credit limit(s) will be) but it does not reflect on your personal credit report, other than possibly an inquiry.
One key resource that I have found in my real estate investing research has been Tom Kish. Here is some info I received in one of his recent emails:
From the desk of Thomas Kish:
In the next two minutes you are going to learn something about credit that most folks will never know. It concerns the most profitable loophole in the credit reporting system.Interested? Almost everyone knows that a loan or credit card in your personal name gets reported to the credit bureaus. And this borrowed money shows up on your credit report. The more you owe on your credit report, the lower your credit score will be. But - pay attention now - there is a way to get loans and credit cards that NEVER show up on your personal credit report. And here it is . When you get a credit card *In The Name Of Your Business*, it will never appear on your personal credit report. So you can get large amounts of cash from the banks I work with everyday without worrying about your personal credit profile. You can then use this cash to do any kind of realestate deal you find.And you can start a business on paper for almost nothing. Just pick out a cool name for your new business and submit it on-line. No matter how much cash you take out in the name of your business, your credit score never drops. So you could get up to $200,000 in cash from UNSECURED new business lines of credit and use it for -
1. The down payment on a piece of real estate.
2. Rehabbing a property.
3. Paying cash finders fees or cash for keys to get control of a property.
4. Marketing and advertising costs to find motivated sellers.
5. Pay the utilities and monthly mortgage payments while you wait to sell the house for a big profit.
This is the best way most people have ever seen to get cash to buy real estate. Because, in effect, the money is invisible. Pretty amazing,stuff. But just the tip of the iceberg on what you will learn when you start using THE ULTIMATE REAL ESTATE INVESTORS GUIDE at:
http://m353.infusionsoft.com/go/cfsy/pfeiffer/
Another great resource for building business trade lines of credit and business (cash) lines of credit is Corporate Credit Concepts. Where it used to take years to build substantial business credit lines, these guys can help you in a matter of months, sometimes less depending on if the business has been operating for 2 years or longer. There site is at:
http://www.effortlessonlinemarketing.com/app/?af=613048
When your looking to actually purchase the property(ies) you again don't want ot put all these properties in your name. A great resource that I have discovered that has a tremendous amount of information on what is called Private Money Lending is Alan Cowgill. He has courses and bootcamps that will take you step by step thru the process of finding private money lenders. He also has a great deal of knowledge on SEC rules as it relates to private money lending itself. You can get money quickly and with much less hassle and paperwork than going through a bank or mortgage broker. With Private Money Lending you have a couple choices as well, you can be a passive investor, meaning that you lend money out and earn a higher rate of return. (Ex. Most Private money lenders charge between 7 - 15 % or more on a fist mortgage secured by real estate) or you can be an active investor buying fixing and selling real estate looking to close quickly on deals, usually in 2 to 3 days , not 30 to 45 days. You can view Alan's courses and info at:
http://www.mcssl.com/app/aftrack.asp?afid=613038
Did you know you can also use your IRA money to be a Private Money lender or investor? There a re a couple of companies that can do this for you but the one I use and trust is Equity Trust Company. They are located in Elyria, OH and are one of the largest third party administrators (self-directed) of IRA money. Check out their resourceful site at:
http://www.trustetc.com/professionals/pro-form.html
One other resource that I found recently is a a company called Prosper - People lending to People. People who need money request it, and other people bid for the privilege of lending it to them. Prosper makes sure everything is safe, fair and easy. Here is a link for them:
http://www.prosper.com/referrals/all.aspx?referrer=tmpfeiffer&utm_source=referrer-tmpfeiffer&utm_medium=referral-link&utm_content=link&utm_campaign=referrals-all
As you can see there are a number of options to keep from getting money that is going to reflect and most likely downgrade your personal credit score over time.
Start Building your business today with the money and resurces that will build your business credit score with a Dun & Bradstreet number and file. Work with some or all of these companies above to help you get your business up and running... stop making it so Personal! Get Business Credit for your Business today and for the future!
In the future we'll have more articles on credit, do and don'ts in real estate investing and insights on the dynamic Charlotte real estate market, one of the fastest growing markets in the country today!
What I really want to stress with this blog is that you don't keep everything in your personal credit. Not just buy your investment properties with your home equity or bank mortgages that you have to personally guarantee, that means you have to sign it in your name and you have to supply you Social Security number. This means that all of these mortgages show up on your personal credit score! Have a lot of mortgages, this can bring down your credit score! Believe me it happened to me.
What I truly recommend and I am going to supply a number of resources here is to start your Real Estate investing business as a business... Start off by getting that LLC filed with your state and after confirmation of filing from the Secretary of State, file with the IRS to get your EIN number. In most cases, you can now do that right online at www.irs.gov. There are a couple of excellent sources to start building your business lines of credit and credit cards quickly. IMPORTANT NOTE: Business lines of credit and credit cards do not report to your personal credit report, they do not affect your personal credit!! Please check with the Business credit issuer when applying to make double sure, but in most cases this is how it is set up. Now the Business credit reporting agencies will see how high your personal credit score is (this determines in many cases, how high your initial credit limit(s) will be) but it does not reflect on your personal credit report, other than possibly an inquiry.
One key resource that I have found in my real estate investing research has been Tom Kish. Here is some info I received in one of his recent emails:
From the desk of Thomas Kish:
In the next two minutes you are going to learn something about credit that most folks will never know. It concerns the most profitable loophole in the credit reporting system.Interested? Almost everyone knows that a loan or credit card in your personal name gets reported to the credit bureaus. And this borrowed money shows up on your credit report. The more you owe on your credit report, the lower your credit score will be. But - pay attention now - there is a way to get loans and credit cards that NEVER show up on your personal credit report. And here it is . When you get a credit card *In The Name Of Your Business*, it will never appear on your personal credit report. So you can get large amounts of cash from the banks I work with everyday without worrying about your personal credit profile. You can then use this cash to do any kind of realestate deal you find.And you can start a business on paper for almost nothing. Just pick out a cool name for your new business and submit it on-line. No matter how much cash you take out in the name of your business, your credit score never drops. So you could get up to $200,000 in cash from UNSECURED new business lines of credit and use it for -
1. The down payment on a piece of real estate.
2. Rehabbing a property.
3. Paying cash finders fees or cash for keys to get control of a property.
4. Marketing and advertising costs to find motivated sellers.
5. Pay the utilities and monthly mortgage payments while you wait to sell the house for a big profit.
This is the best way most people have ever seen to get cash to buy real estate. Because, in effect, the money is invisible. Pretty amazing,stuff. But just the tip of the iceberg on what you will learn when you start using THE ULTIMATE REAL ESTATE INVESTORS GUIDE at:
http://m353.infusionsoft.com/go/cfsy/pfeiffer/
Another great resource for building business trade lines of credit and business (cash) lines of credit is Corporate Credit Concepts. Where it used to take years to build substantial business credit lines, these guys can help you in a matter of months, sometimes less depending on if the business has been operating for 2 years or longer. There site is at:
http://www.effortlessonlinemarketing.com/app/?af=613048
When your looking to actually purchase the property(ies) you again don't want ot put all these properties in your name. A great resource that I have discovered that has a tremendous amount of information on what is called Private Money Lending is Alan Cowgill. He has courses and bootcamps that will take you step by step thru the process of finding private money lenders. He also has a great deal of knowledge on SEC rules as it relates to private money lending itself. You can get money quickly and with much less hassle and paperwork than going through a bank or mortgage broker. With Private Money Lending you have a couple choices as well, you can be a passive investor, meaning that you lend money out and earn a higher rate of return. (Ex. Most Private money lenders charge between 7 - 15 % or more on a fist mortgage secured by real estate) or you can be an active investor buying fixing and selling real estate looking to close quickly on deals, usually in 2 to 3 days , not 30 to 45 days. You can view Alan's courses and info at:
http://www.mcssl.com/app/aftrack.asp?afid=613038
Did you know you can also use your IRA money to be a Private Money lender or investor? There a re a couple of companies that can do this for you but the one I use and trust is Equity Trust Company. They are located in Elyria, OH and are one of the largest third party administrators (self-directed) of IRA money. Check out their resourceful site at:
http://www.trustetc.com/professionals/pro-form.html
One other resource that I found recently is a a company called Prosper - People lending to People. People who need money request it, and other people bid for the privilege of lending it to them. Prosper makes sure everything is safe, fair and easy. Here is a link for them:
http://www.prosper.com/referrals/all.aspx?referrer=tmpfeiffer&utm_source=referrer-tmpfeiffer&utm_medium=referral-link&utm_content=link&utm_campaign=referrals-all
As you can see there are a number of options to keep from getting money that is going to reflect and most likely downgrade your personal credit score over time.
Start Building your business today with the money and resurces that will build your business credit score with a Dun & Bradstreet number and file. Work with some or all of these companies above to help you get your business up and running... stop making it so Personal! Get Business Credit for your Business today and for the future!
In the future we'll have more articles on credit, do and don'ts in real estate investing and insights on the dynamic Charlotte real estate market, one of the fastest growing markets in the country today!
Author's Bio:
What I Have: I have a lot of knowledge in doing Rehabs, (what to do , what not to do) short sale knowledge, persistence in meeting my goals What I Want: I am looking for motivated Business Credit Partners and Private Money partners to build my business to be the Premier RE investment Co in the Charlotte market Interests: Being and Entrepreneur, Raising and spending time with my 4 boys and my wife
What I Have: I have a lot of knowledge in doing Rehabs, (what to do , what not to do) short sale knowledge, persistence in meeting my goals What I Want: I am looking for motivated Business Credit Partners and Private Money partners to build my business to be the Premier RE investment Co in the Charlotte market Interests: Being and Entrepreneur, Raising and spending time with my 4 boys and my wife
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