Brooklyn, NY · Member since 2016 · 74 posts · 15 votes
Hello BP nation!
Can I get some insight on how to use business credit to purchase a property? I've heard about it, but I would like to hear from others about how they went about doing it.
If you have a business and you register it with Dun and Bradstreet and are otherwise legit, you will receive lots of offers for lines of credit. Every day. Sometimes, these will not show on your personal credit report, which is nice. But, the size of the line will be under $100K, so buying a property with that is not likely. And the interest rate may be 8-10%, so it's better for a short-term (fix and flip) type deal. If you're going to combine it with traditional financing, remember that lenders don't want you borrowing your down payment, so you will need to still put down 20% or so of the purchase price IN CASH, with "seasoned" funds that have been borrowed or gifted in the past 6 mos.
Other than for fix and flips, I don't see the advantage.
@Taron Jackson There is no reason. Loans will either be recourse or non-recourse. If recourse your personal credit will be a major consideration if non-recourse then the cash-flow will be the key driver and credit scores wont mater that much at all. Either way not to many folks are pulling your D&B score.