How To Build Real Estate Business Credit

What is a real estate investor line of credit? How can a business line of credit benefit investors?

Buy and hold real estate investors have mostly relied on personal credit or have payed cash for income properties. These types of credit have served many investors well. However, they have also left many coming up short on their full potential.

Here are some of the most important reasons every business should build a real estate business line of credit:

• Reduce Risk
• Build Value
• Scale Your Business
• Easy Access To Funding

The Importance of Building Business Credit

What’s so crucial about developing business credit for rental property investors? There is a risk-reducing and wealth preservation benefits that separating personal and business finances can offer. The separation of business (investment) credit and assets from everyday personal credit offers extra protection against a variety of risks. It can help individuals keep income coming in and investment assets safe when personal crises creep up. Conversely, personal income and holdings can be reserved when investments run into issues. This becomes even more important when partners are involved in buy-and-hold real estate.

How To Build Business Credit:

• Incorporate your business
• Get A Federal Tax Identification Number
• Open A Business Bank Account
• Get A Business Phone Number
• Get Business Credit Cards
• Start A Business Credit File
• Establish A Line Of Credit
• Pay Everything On Time

In order to build a real estate business line of credit, you need to give yourself time, it’s not something that will happen over night. As a result, the sooner you get started, the better!