Business Credit for Flipping Business

Business Credit for Flipping Business

Investor · Fort Worth, TX · Member since 2011 · 1k+ posts · 450 votes

There is a gentleman named Russ Lebrasc who is selling a 10 module course for about $300.00 that is supposed to teach you how to get business financing to flip houses. The short of the long, from what I gather from his web video ad, is that it is relatively easy getting up to $50,000 in unsecured credit for business financing. He even goes so far as to show you the link right there on Capital One’s website indicating credit card limits up to this amount granted and requiring no documentation. I went to the Capital One’s website and sure enough, there it is. This is not exclusive to Capital One, but that is the bank he uses as an example.

The apparent challenge to getting business credit rather than investor credit is to present yourself as a small business and not as an investor. The insinuation of the web ad is that he will teach you the right way to present your flipping business to the bank so that they will see you as a business and not an investor.

So, my question is, have any of you guys with LLC's had success in getting small business financing rather than investor loans for your flipping business. If you did, how did you present your business to the bank? Likewise, if you tried and were denied, what was the bank's reason for denial?

Basically, I am asking if anyone here on BP is willing to share for free what can be bought for $300.00. The link to the video is below. I apologize in advance if I can’t make it clickable:

http://www.*****************/blog/2011/a-unique-source-to-get-cheap-money-for-your-deals/

I guess the website is censored. It is from [REMOVED]. If I am not supposed to share this info on the forum, I apologize in adcance.

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Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
14y

Unsecured lines in excess of $50k are much harder to get. You can get $50k in unsecured funds with a personal guarantee and good financials. Many companies coach on this...BCS, Lendio, unsecuredline.com, etc.

You'll need to work to get your business credit scores (Paydex, Experian, etc.) up to snuff and show some nice cash flow, but unsecured lines aren't that hard to get below $50k. The trouble is that $50k doesn't go very far in real estate!

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  • Lender · Salt Lake City, UT · Member since 2012 · 714 posts · 169 votes
    14y

    Most of the people I've known that have tried this, did not succeed in getting money, unfortunately.....

  • Real Estate Investor · Toronto, Ontario · Member since 2010 · 413 posts · 114 votes
    14y

    Most Business credit banks will want o see minimum 2 years of business plus good credit. So anytime you can set up an account with different vendors in your business name, it's a good idea. Example: home depot This will help build a credit history for your company.

  • Specialist · Portland, OR · Member since 2010 · 3k+ posts · 1k+ votes
    14y

    When I was at an auto auction there were credit card companies qualifying people for large Visa loans. Was able to get a 30k line.

    The last time I pulled a large amt of cash from a credit card I unknowingly agreed to a 5% loan fee. The cash was needed to close escrow and had a temporary cash crunch.

    So, if you have the credit and are willing to pay the large loan fee then it is most likely possible.

  • Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
    14y

    Unsecured lines in excess of $50k are much harder to get. You can get $50k in unsecured funds with a personal guarantee and good financials. Many companies coach on this...BCS, Lendio, unsecuredline.com, etc.

    You'll need to work to get your business credit scores (Paydex, Experian, etc.) up to snuff and show some nice cash flow, but unsecured lines aren't that hard to get below $50k. The trouble is that $50k doesn't go very far in real estate!

  • Investor · Fort Worth, TX · Member since 2011 · 1k+ posts · 450 votes
    14y

    Thanks Jeff and Bryan!

    I know interest rates could be fairly high, but I am trying to find alternatives to hard money. If I put in 20K in cash and have 50K to use in credit, I just might have enough money to do a little flip. So, this might be just what I need. Thanks for the leads Bryan.

    Jeff, I know cash advances on CC's can be pricey, but there isn't much rehab that can't be handled with a Visa. Yeah, some of the handy man guys only take cash, but there are some ways around that with most guys worth working with.

    When I paid cash for my rental, I rehabbed it with a small LOC and a personal Visa. The balance was just too small to get any other kind of financing. And I like that the credit was not tied to the house.

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