How do I get started?

[Cortney Gilliom]

I started a business specifically to invest in Real Estate using my business credit and through business loans. How do I get this process started?I have a DUNs number and have 6 Tradlines (Net30) accounts with six different companies. Just additional info to clarify the situation

[Randall Alan]

Quote from @Cortney Gilliom:

I started a business specifically to invest in Real Estate using my business credit and through business loans. How do I get this process started?I have a DUNs number and have 6 Tradlines (Net30) accounts with six different companies. Just additional info to clarify the situation

The traditional way is with your own money.  3-5% down if you are buying an owner-occupied house / duplex, etc.  20-25% down for non-owner occupied investment properties.  

Trade lines likely won’t help much… they actually just look like potential liabilities to the bank.   You are usually going to need some real cash in the bank.

Otherwise you could consider partnering up with maybe a family member who could bring some  buying power to help you out maybe. There are hard money lenders who charge a lot more for their money, but just starting out you would need a really good deal for them to jump on board with you in all likelihood.

By the way, you can’t finance a residential mortgage under a business name… so your newly minted business doesn’t help a lot there either.  You can usually deed a personal mortgage to an LLC after you buy it though. 

If your business is new, it likely won’t have a lot of resources to contribute towards purchases.  The business would need to have revenue that you could then take as personal income… then it starts to help you out.  Any lender is going to want to know how they will get paid back.  They are going to expect you to be able to make some mortgage payments if your unit is empty (read: have some cash reserves).

Making your first venture into real estate can take some time to position yourself right.  You don’t really speak to what your financial resources are, but just having a new business likely isn’t going to be enough on its own to let you do what you want to do.  Save up some cash and then buy a house you can live in and rent out another part… this will let you potentially live rent free.  This will accelerate your saving to buy your next investment property

All the best!

Randy