Reducing personal CC debt to apply for business line

[Curt Smith]

Hi Folks, I'm not seeking funding or offering anything. I'm looking for input from BPers who have gotten business lines or know of lower pts / cost business line packagers than the folks I've talked to so far.

Here's a tactic to lower your credit balance shown on your credit report. I could use a referral to someone or org who'll do this. In order to qualify for a business line today I'm told that you'll get the best terms if you pay down your personal CC etc debt to below 20%. One way this particular org can help you is to xfer your CC debt to a short term hard money lender who charges no points and just 12% which is not seen on your credit report. IE this is an unsecured HML. You get your business line, then you transfer that HML onto the business line and the debt stays off your credit report the whole while. I could use a referral to short term HML at no or low points and at 12% or less?

The particular business line org charges 15% of the total amount they get you. Last year an org charged 8% (success fee). Geeze every year these guys jack their rates up and up. Anyone know of an org who gets true business lines (doesn't show up on your credit report) that is less than 15%?

One of the shady things other orgs who do business lines is that they get their customers consumer lines not business lines. This totally screws the investor from ever getting bank debt for over a year. Be careful that you are really getting a business line that does not show up on your credit report.

Another thing I learned on todays call is that initially the business line is just a CC card. IE you can't fund the purchase of a house by sending funds from the business line to an escrow account. Typically it takes 9 months for the funding banks to give you check book priv on your business line. Thanks to my Home Depot card and Lowes card I really don't need yet another CC card so this whole business line quest is alot of work and expense for not solving my real need of operating funds to self fund buying fix and flips... Short of JVs and finding private lenders per deal how do other investors solve the operating funds short fall issue?

curt

[Wayne Brooks]

Sorry, the whole "concept" sounds like a crock of BS to me.

Sounds like one of the groups getting you business type CC's--office depot, staples, HD, lowes, etc., which of course you can get on your own. To get a real business line of credit (like actual money you can use), you need a real business. It may not show up on your credit report, but you'll have personal guarantees. And...a HML giving an Unsecured 12%, no points loan? I guess unicorns riding on the backs of pink elephants do exist.