All Forum Posts by: Jeff Takle

You can get a business credit card at any major bank. The best ones, in my opinion, offer high percentage back in cash--the airline miles equate to about a 1% return, whereas you can get as high as 3% return cash back. CHASE has several cards with no annual fee and good rebate/returns. Them, and American Express' Blue Cash, offer the "best" cash back situation. Assuming, of course that you pay them off each month. I navigated to those two cards based on an article I read (can't remember which article) on an airplane magazine talking about what business cards are best. Of course, they're likely in there because of the full page color ad on page 122, but hey.

Otherwise, you'll generally need assets or a proven track record of revenues. Lots of people start LLCs because they assume it will provide liability coverage (which it doesn't always) and to be sneaky with securing traditional money. It's a company. You need to keep books, write checks, have credit cards, buy staples, that kind of thing. If you don't a judge will pierce the corporate veil in a heartbeat and you won't have any legal liability protection. As a pass-through entity, there are no particular tax benefits except that it helps to fend off an IRS audit by showing that you run a legitimate business and all those deductions you claimed were legitimate, but ONLY IF YOU KEEP GOOD BUSINESS RECORDS and do all those things above like write checks and operate like a real business. Banks, too, don't like to be hoodwinked and will require some form of: 1) Proof that you are a real company that makes money, or 2) an asset the LLC can pledge as collateral.

My advice is to start small and get a credit card. Buy stuff with it (doesn't do any good to have an inactive credit card on your company credit report). Try to turn some profit. Use the LLC to collect rents from your own units at least and take 20% fees. In a few months, talk to a bank and see if they'll loan you $2,000. Pay it back over 6 months. Bottom line here, really, is why do you want money for a business if it isn't FOR the business? If you are looking for a way to get a bank to loan you money that you aren't personally liable for, an LLC is not a good idea. 1) its fraud. 2) banks will see through it.

Why do you need the money? {may change the situation}

Justin,

Check out this thread from a while back that references spreadsheet help:
http://www.biggerpockets.com/forums/viewtopic.php?t=2091&highlight=email

boywonder,

You can do this just like any company can get credit from a bank. First, you have to develop a credit history for the LLC, in the LLC's name. Get a credit card, then get a small loan, then maybe a larger one, etc. It really helps if you have those pesky things called "assets" too. If, on the other hand, you don't have any assets and you have no credit history, then you probably won't get any financing from a traditional bank. There are secondary lending markets (see topic in the Forum Index) where you might find other options. Secondary markets and all business loans for that matter, tend to come with higher interest rates b/c people care less of their company goes bankrupt or defaults then if they personally do; that's reflected in the banks risk, and therefore the interest rate charged. These are the rule--there are exceptions.

One thing you could do is to transfer a property or two into the LLC. If it's paid off and held in the name of the LLC, then you should be able to get credit the traditional way no problem, using the real estate as collateral. But, if you still carry a mortgage, I think you still get tied in. I'm no expert but I have sought financing through LLCs. I've had assets and credit history though.

Hope this helps.
Jeff

Go to your county courthouse General Clerk, deed of records, or City Hall. Find the assessor's office, or check www.SearchSystems.net to see if they have the public assessor's records online. Any of these will get you there. If you're still not able to find them, just call a city/county zoning commission / zoning board and they'll point you in the right direction.

Rich Dad, Poor Dad and the series are inspiring but they're not prescriptive, that's certainly true. But, in their defense, I've seen people pull the wrong messages out of them too--a lot of folks I've met think the message was "buy any real estate you can get your hands on, as fast as you can do it." That wasn't Kiyosaki's message. He said clearly to develop comprehensive and, to the extent possible, objective criteria for buying/selling decisions on real estate. A lot of people think they're geniouses right now because their real estate portfolio's blossomed. Hey, a monkey could have done well in this market. The ones who will be left standing after the market hiccups or dips will be the ones with a solid plan and rigid systems in place. <rant over>

That said, good to see you Deyl! You may want to check out a related thread: http://www.biggerpockets.com/forums/viewtopic.php?p=5121&highlight=nonprofit#5121

Jeff :welcome:

Worst case, you pay the 65. The 7 years is from the date of delinquency, not the date of last update to the record, I am almost certain. So, it won't impact your 7 yr limitations.

Thanks all cash. Very cool, succint post. I've tried seller financing and got nibbles, but no bites. Most of the folks were too wary because they hadn't heard of that arrangement before. Any tips on how to "sell" the idea to someone who is otherwise unfamiliar with it?

Obviously, there are situations where it is certainly a benefit to the buyer and I don't really see a huge downside as the seller since you can always call the loan for nonpayment as long as the mortgage / promissary note is written up well. The only major problem I see right now is the competition with a lot of "zero down" loans available to buyers in the New England area and the overall ridiculousness of the prices--giving someone low / no closing costs would be an incentive, but the loan is still going to cost a pretty penny in PITI.

AMEN, says I, from my pajama bottoms and fuzzy slippers. Home office was the greatest invention since sliced bread.

I had a similar issue with a medical bill from about 6-7 years ago. I called Equifax to dispute and they said I needed to call the hospital directly and resolve it with them. I called the hospital and they couldn't find any record, good or bad, in their system. I asked them politely if, since they had no evidence that I did or did not ever pay them or owe them, they would contact the credit agency and erase it. They agreed and poof it went away.

There's no harm in asking.

:groovy:

Adrian,

Another consideration is whether or not you'll be doing multiple deals in the same area. Local lenders are a lot more likely to deliver what they're promising if they see repeat business potential from you. Internet-based lenders have been very problematic in my experience, except for USAA b/c I have several other insurance / bank accounts with them through the years. Once you find a good one, IMHO, stick with them. Best to have someone you trust. Even still, I like dcg's advice...watch them closely. They are your partner but it's YOUR money you're dealing with and you need to constantly prod and make sure you're getting the best deal possible.

r/Jeff