What business credit cards to apply for, on my newly formed llc. I will be working on my first BRRRR
What is your reason for applying for a business credit card?
Are you looking for a new credit card to help fund you deal, or to be able to put all of the business expenses on a separate credit card for easier tracking?
If it is to help you fund a deal, that can be a very risky strategy.
If it is to make it easier to track your expenses, almost any credit card would work but I would recommend one that doesn't charge annual fees. I would look at the rewards offered by the home improvement store you use.
I'm trying to establish a business credit trail for my llc, so I can fund future flips.
My favorite for travel is the AMEX platinum and Chase Ink Preferred. Do you want travel benefits, cash back, price protection on top of building credit? If none apply, get one with the lowest APR and fees.
@Robert Bates Regarding business credit for funding future flips, I've always been required to provide a personal guarantee for the loans, which means a review of my personal credit and personal financials. This is even for commercial loans. That's my experience at least, and I've been doing REI for about 15 years now.
As per my experience, personal credit is more important in real estate investing than business credit. The lenders will look at you as a business owner, not only at your company. Active real estate investors open and close LLC's all the time. The lenders will ask all your personal financial data anyway.
But to answer your question - get the card that has cash back, no annual fees and low interest rates. We personally don't use business credits cards, but I found a nice comparison below:
A lot of people will open new credit cards (personal or business) in anticipation of large upcoming expenses. Since you're doing a BRRR, a viable strategy is to put all of the rehab costs on these new credit lines. The world of credit card sign up bonuses is extremely broad and deep (too deep to go into detail in this post) but you should be able to hit multiple minimum spend requirements (MSRs) and receive significant bonus value.
That being said, please do make sure that you're not borrowing from the credit cards and that you have the funds to pay them off immediately. Never carry a balance. If you are trying to carry a balance, I'd look towards business cards with 0% introductory APR for 12-18 months. Business credit cards don't report to personal credit bureaus so your personal credit score will not be impacted.
I'd recommend the Chase Ink Cash (50k Ultimate Reward points), Chase Ink Unlimited (50k UR), and Capital One Spark Business ($1,000 cash). Other good resources to use are:
Thanks everyone for the information
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing