Building business credit to buy real estate later

[Jorge Hernandez]

I saw an online post that you can form an LLC and use your personal household bills. By paying your household bills, you can build your business credit and leverage the credit to purchase real estate.

I wanted to get feedback on how this concept works if it works at all 

[Doug Smith]

I was a banker prior to going into private lending/real estate investment..a total of 32 years...and I can tell you that I've never pulled a D&B report on a real estate investor that wasn't a big developer. Business credit is completely irrelevant for the types of loans you'll be doing. Don't waste your time trying to develop a business credit profile, because we don't care. We're going to take a hard look at your track record, your personal credit report, your last 2 months of bank/brokerage states to establish liquidity, and we're going to make sure your project is reasonably viable. We don't care about what your Dunn and Bradstreet report looks like for buying for a smaller real estate portfolio. Worry about it when you start to develop shopping malls. Good luck to you.