Wholesaler · Macomb, MI · Member since 2009 · 57 posts · 8 votes
I'm looking to build my business credit and want to get a DUNS number. I understand that D&B requires a SIC code but none of the categories seem to fit for Real Estate Investments. Has anyone in this forum applied for a DUNS number? If so, what SIC Code did you use? Thanks in advance for any replies to my question.
Having a DUNS number for your business is like the way you establish a credit history for your business; just like we have FICO, Experian, etc... scores. It's important to banks to "look us up" like banks do with our Social Security number when getting loans for homes, cars, etc... Having a Dunn and Bradstreet (D&B) D-U-N-S Number does not mark your business as HIGH RISK. However, the SIC code you use to classify your business could mark you as a high risk business. A flipping houses business is more like a Real Estate Management Consulting Business (we consult with agents and contractors to help us buy, list, and wholesale properties). I am hearing the SIC code for that is 8742 - Management Consulting Services (87420406 Real Estate Consulting) is more of a safer code to use than the normal SIC code: 6531 - Real Estate Agents and Managers; which I hear it’s considered HIGH RISK for banks and lenders that do lines of credit because many big banks do not like us real estate flippers. They are too conservative and think our business is too risky for them. I used SIC Code 8742 - Management Consulting Services (87420406 Real Estate Consulting) for my LLC. I also have a Holding company LLC (Buy and Hold) for rental houses. My SIC Code for rental property holding company is 6514 - Dwelling Operators, Except Apartments.
Though this post is now a couple of years old, I thought I'd add a link to an article that relates to being labeled as a "high risk" real estate investor when applying for a D&B account:
When you used the 87420406 real estate consulting number for your duns SIC code did that work good for you? Have you ever run into any issues? I am going to set up a Duns number and We fix and flip houses, have rentals, and wholesale, i wasn't sure what to use... Or if it even mattered a whole lot.
Mike Walkers above reply with the link says that doing anything like Investing or lending can make credit hard to come by. From some of the webinars i have watched i thought your Duns Score ran directly off your ability to pay perfect and on time and never have any late payments.
Having a DUNS number for your business is like the way you establish a credit history for your business; just like we have FICO, Experian, etc... scores. It's important to banks to "look us up" like banks do with our Social Security number when getting loans for homes, cars, etc... Having a Dunn and Bradstreet (D&B) D-U-N-S Number does not mark your business as HIGH RISK. However, the SIC code you use to classify your business could mark you as a high risk business. A flipping houses business is more like a Real Estate Management Consulting Business (we consult with agents and contractors to help us buy, list, and wholesale properties). I am hearing the SIC code for that is 8742 - Management Consulting Services (87420406 Real Estate Consulting) is more of a safer code to use than the normal SIC code: 6531 - Real Estate Agents and Managers; which I hear it’s considered HIGH RISK for banks and lenders that do lines of credit because many big banks do not like us real estate flippers. They are too conservative and think our business is too risky for them. I used SIC Code 8742 - Management Consulting Services (87420406 Real Estate Consulting) for my LLC. I also have a Holding company LLC (Buy and Hold) for rental houses. My SIC Code for rental property holding company is 6514 - Dwelling Operators, Except Apartments.