A business line of credit provides flexibility that a regular business loan doesn't. With a business line of credit, you can borrow up to a certain limit — say, $100,000 — and pay interest only on the portion of money that you borrow. As the amount of the borrowed principal is reduced, your effective interest rate is reduced as well. AND It's NOT attached to your personal credit!
Do you know having credit with certain lenders can actually hurt your credit profile? You might have enough “credit” to build a house BUT due to WHO you are borrowing money from it could be hurting your chances of having more and better credit options. Why does this matter?
Having the wrong lenders can literally cost you hundreds of thousands of dollars over your lifetime. On an amortized $200,000 loan, every point over 10 years costs an extra $10,250 ($20,000 if a simple interest-only loan). But that is just the start of it.
This does not take into account compounding interest!Fair Issac®, the developer of the FICO® Scoring software, has 88 products (and growing) to help financial institutions grade borrower trustworthiness according to purchase type. There are rules to this game, and the rules aren’t readily available to you and me.All of these different products are weighted one way or another.
There are a series of steps that are actually fairly simple you can take to make your credit identity perfect in the eyes of lenders. Perfect meaning that you can go through “automatic underwriting” instead of going through all the tedious manual underwriting we have become familiar with.
Our speaker this month, Merrill Chandler of CreditSense, will talk about how doing some simple tricks to your personal credit identity can set you up to start building massive Lines of Credit (LOC) with check writing capabilities through your business(es). These LOCs should be attached to your business only, with no personal guarantees. There is easy and cheaper money out there.
And these things don’t have very much to do with your FICO score! This is NOT Credit Repair. This is Credit Optimization. FICO scoring software measures 40+ characteristics of your credit profile. Only 10 of those characteristics measure derogatory or negative listings.
That means there are 30+ ways to improve your credit profile and raise your credit score without touching a single negative listing. Think of that. Correcting negative listings comprises less than 10% of available credit profile fund-ability strategies.Bring your questions and your notebook.
About Our Meetings…
Sacramento Real Estate and Investment club Meetings follow the same general format every month:
- 6:30-7:30 pm: Come early for NETWORKING (Bring business cards!)
- 7:30-9:30 pm: MAIN MEETING (including market updates, live investor profiles, a one-hour speaker presentation, and much more)
- 9:30 pm – On: Stay after for MORE NETWORKING
As always, FREE to Annual Club Members, $20 Non-members
To find us, ask the front desk where Capital City Wealth Builders are meeting (and for a free cookie!)
Please note as stated in post: As always, FREE to Annual Club Members, $20 Non-members
The forum editor is having issues and will not register the meeting fee.
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