Cantonment, FL · Member since 2015 · 3 posts · 0 votes
I've been researching investing in real estate for about 18 months now I'm ready to get my feet wet but the one problem I have this capital get in the lungs to finance these Buy and Hold realestate someone told me maybe I need to acquire LLC and apply for some business credit that way it keeps it off my personal credit at the moment I'm buying a brand new house for my family which I'll be closing on the end of next month what are some avenues that I can take to acquire and build some business credit or do I need to just go out buying real estate with my own personal credit if someone can please reply because I'm ready to get going in this realestate game
Please understand that starting a business entity and getting credit in that entity takes time.
First, most creditors / lenders will want to see at least one full year in business. So, the sooner you get an entity started the better. Start that clock!
Second, unless there is a good amount of money moving through the business, you will likely need to provide a personal guarantee until the business can get credit on it's own merits: length of credit history, payment history, amount of credit available / in use, ...
Providing a personal guarantee just means that if the business defaults, the creditors / lenders will come after you. Those accounts do NOT appear on your personal credit until then.
You'll need to learn about Dunn & Bradstreet and their Paydex score as well as the other business credit reporting agencies, which vendors report to which agencies, ...
Hope this helps...
David J Dachtera
"Success is not a destination. Failure is not an event. Success is a process, failure is a choice." - DJ Benedict
I started building my biz credit about a year ago. I just do same things like buy a cup of coffee and pay off the bill each month. I'm able to increase my credit limit this way.