All Forum Posts by: John Acheson

Great post and I would like the 2nd that with a call out for any lender/banker/brokers that do Fannie Mae direct lending without overlays licensed in NV preferably located in Carson/Reno/Sparks.  Thank you Stacy!

SELL SELL SELL because we are near the top and greed kills! Start a single member (files Sch Cs and doesn't deal with K1s) LLC and pay DnB $500 to build credit quickly while boosting my personal credit and paying off all debt or converting all personal debt into business so it's off the personal reports for DTI. Take $100K and put it down on a commercial property via LLC with target income combined with personal guarantee financing. Hope that the rents stay firm during next downturn or try and force appreciation if market continues up.

What about the legitimate FICO scores now being provided by many credit card companies to card holders in good standing? 

Steve, thank you thank you thank you for the honest post! I firmly believe that one's/spouse/business/LLC credit scores are the 1st step in real estate. Could you post a commercial version based on the 1 - 100 range from DnB and any Experian info. that you may have for those on BP that might want to do a LLC etc. From what I understand, it used to be 80+ but are there new guidelines as of the past few years?

Congrats on finding an area that works well and can benefit from BP advice. One dream is to do a 1st deal in CA but I haven't found a strategy that works. If you ever come across a tactic that can work in CA, please let me know, John

Treivor, one quick answer is to actually buy an aged LLC or season a LLC as a legitimate business, go into commercial real estate, and always hire management companies to deal with the service side. But in reality, that can take years of saving large down payments, building business credit while moving personal debt to the LLC to boost DTI, unless you have cash resources to be able to buy off the shelf credit products from firms like DnB. Feel free to message me if you want any free advice on leveraging an entity's credit in your business plan or click Business Credit on CreditBoards.com for more info. For a multi-millionaire running businesses who says he never recommends "termites, tenants & toilets," search Grant Cardone (not that I agree with everything he says) on YouTube who has 4,000+ doors that he DOES NOT manage to see how the big boys play. But again you will find little info. on YouTube about building LLC credit. Corporate credit and entities are one of the secrets of the rich and wealthy.

Kris, not sure what the timeline is but I would personally want the LLC's business and corporate credit profile with DnB and Experian to be as high as possible. Message me if you would like any free advice on that or shoot over the CreditBoards.com and click on Business Credit. You'll need about 4-6 vendors reporting net terms on the LLC, then you can go to places like OD, Staples for charge cards, then maybe Home Depot and banks for business credit cards, and then finally the holy grail, a business credit line. Also, I would personally shoot for 800 on the personal side, and get DTI maxed by moving all personal debt to the LLC. Unfortunately, building credit takes a lot of time but I hope this helps.

Boe, according to this CA young broker on YouTube for newbies,

https://www.youtube.com/watch?v=VDT9oS93vqQ

he says 1) go to open houses 2) get pre-approved 3) buy FHA and rehab/refi later into conventional because you can get the biggest bang for your down payment, which might be a CA problem since starter houses are easily $300K to $400K.

I personally would say that getting one's/spouse or business credit scores as high as possible and debt as low as possible is the 1st step because it takes 2 years to build a LLC with business credit and can take months to maximize one's/spouse credit & DTI.

If you already have a 720+ and/or LLC with 80+, then you need to decide on whether you are playing in residential or commercial. Open houses won't really help you in commercial. BP will help tremendously with residential.

Wholesaling is smart according to this analysis that yielded $11K (slow dime) on a fix & flip vs. a $10K (quick nickel) according to Phil's Secret to Flipping Houses:

https://www.youtube.com/watch?v=EudeRC3p5rQ

Hope this info. helps and if you have any Qs about building personal/spouse/business partner/LLC/corporate credit, send me a message, happy to help :)

Robert, if you're concerned with the interest rate I would say your credit score is the 1st place to start. Are you 720+ or high 700s if not 800 FICO? Feel free to message me regarding several tactics to check, manage & raise both business/corporate and personal/spouse credit scores, John

Dan, that is an awesome story all of us can appreciate! Congratulations on making the numbers work but I was curious if the property was in an area that you already knew before BP or did you research another area for something you could feel good about?

Here in the West i.e. CA/OR/NV/WA it's almost impossible to find properties that I would feel good about for under $250K and in CA it's more like $400K and up.

What is your advice in these high markets?