Business credit

[Clarence Hicks]

I've been researching investing in real estate for about 18 months now I'm ready to get my feet wet but the one problem I have this capital get in the lungs to finance these Buy and Hold realestate someone told me maybe I need to acquire LLC and apply for some business credit that way it keeps it off my personal credit at the moment I'm buying a brand new house for my family which I'll be closing on the end of next month what are some avenues that I can take to acquire and build some business credit or do I need to just go out buying real estate with my own personal credit if someone can please reply because I'm ready to get going in this realestate game

[David Dachtera]

@Clarence Hicks,

Welcome to BP!

Please understand that starting a business entity and getting credit in that entity takes time.

First, most creditors / lenders will want to see at least one full year in business. So, the sooner you get an entity started the better. Start that clock!

Second, unless there is a good amount of money moving through the business, you will likely need to provide a personal guarantee until the business can get credit on it's own merits: length of credit history, payment history, amount of credit available / in use, ...

Providing a personal guarantee just means that if the business defaults, the creditors / lenders will come after you. Those accounts do NOT appear on your personal credit until then.

You'll need to learn about Dunn & Bradstreet and their Paydex score as well as the other business credit reporting agencies, which vendors report to which agencies, ...

Hope this helps...

David J Dachtera

"Success is not a destination. Failure is not an event. Success is a process, failure is a choice."
- DJ Benedict

[Al Williamson]

Welcome @Clarence Hicks I really like what @David Dachtera said.

I started building my biz credit about a year ago. I just do same things like buy a cup of coffee and pay off the bill each month. I'm able to increase my credit limit this way.

Best to you!

[Clarence Hicks]

thanks a lot someone else recommended the same thing