All Forum Posts by: Steve A.

I have one alternative that worked for me. I used to have my real estate agent send a quick email to listing agents of properties we were looking at (it was easy because he could link email addresses from the MLS).

We would sort through REOs, pick the best 15-20 that would make good flips. My agent would send a quick email that said nothing more than "I have a cash buyer interested in 'x' property for 'y' price. Should we send a formal offer?"

We would get some helpful feedback without wasting everyone's time.

The most positive feedback came on ugly homes that were on the market 90+ days in which we threw out purchase numbers 70-75% of list price in the emails.

A Title Company is a great place to get a blank copy of a purchase contract for free.

I sent you your email to get you started in the right direction.

Vikram,
Before the economic meltdown, there were a couple companies out there that were able to take a shelf company and build business credit accounts with no personal guarantees attached. They could establish different vendor credit lines to build a strong company credit profile. They would then apply to banks and were able to get several small LOCs without personal guarantees.

Companies soon popped up that would advertise "150k Business LOCs with no personal guarantees".

Fast forward to today.... There are some companies out there saying they can get you business credit through following their credit building program. Most of them tell you that your personal credit scores don't matter up front, that they can raise enough money through business credit to fix your personal credit and eventually get you that $150k/$5M/$100B that your business desperately needs. If you need big money they will try to sell you about buying a 20 year old shelf corp for $15k, etc. All you have to do to get started is buy an aged corp from them for $2k-$15k, and then pay for their program for $500-$2,000 up front, and pay monthly fees of $60-$200 to have access to a credit coach that shows you each step of the way.

Whenever the client says they are getting tired of flushing their money down the toilet their credit coach will dangle the carrot out there saying next month your business credit profile will be strong enough that we can apply to this phantom bank that only we know about, and they will fund you whatever you need.

Sooner or later clients realize they were being sold a dream, and have to move on after having spent several thousands of dollars after months of anticipation, only obtaining some gas cards, office store cards, etc.(if they were lucky).

That is where my $1,500 "program" can look like a real deal....lol

Save your money and don't work with any of them. If you are really anxious to spend money on this, pay me $1,500 cash and I will (1) personally fly to your location, (2) tell you to close your eyes and place your hands on the table, (3) take out a big hammer and smash your pinky finger, and (4) tell you "sorry I can't get you any cash business credit".

This "program" will speed up the pain and suffering you will go through rather than getting a run around for months, if not years working with any business credit building companies to get the same result I got you in 15 seconds (hey, I think I have a new business idea!)

Anyways.... I talked with Trent and Chad Lee a couple years ago, and I know someone that spent a year paying them to get trade accounts that I was able to get on my own within a few months. They never got a dollar of cash credit.

I know several acquaintances that have used several different business credit building companies and it is always the same result. Wasted money and time.

I can tell you in this credit climate don't believe anyone if they tell you they can get you any cash credit if you just pay them "x" amount of dollars for their program. Even if you have great personal credit scores, strong personal financials, strong business plan and experience, you are in for a serious of disappointments trying to get a large amount of business credit from financial institutions. So much so that my original offer will start to look more and more like a great deal.

I can email you a business credit building walk through that you can establish your own credit profiles for the three business credit bureaus, obtain an 80 paydex, and get some small gas cards, office supply cards, etc. (unless you want to pay me that $1,500 to enroll in my program that is "guaranteed" to leave you in a state of shock from my quick results)

All the more reason they would work for $20 a day cash....lol

Here is another way to approach this.... I have found a lot of great cheap labor renovating homes in the strangest ways.

Leave a note telling them that you are buying the place and need some labor to do some demo work. Ask them to meet you at the property at a specific time.

If they show up, offer them some demo/cleaning work. Tell them you can't have people staying here overnight anymore.

Samuel,

I am assuming you purchased a 3 yr old LLC so you can build credit with it. If that is the case, then be careful with the larger virtual office companies. They get flagged by DNB and you can have some issues.

I have used virtual offices, mail forwarding, etc. in the past and thought they were a waste of money.

Building business credit in a shell corp is a waste of time in this economy, so I would say just pay a registered agent for Wy address and keep your existing phone number as the business phone number.

Your costs won't be that high to pay for a registered agent/address.

Jeremy,

It isn't uncommon for 4-plexes and sometimes even individual units have separate tax id numbers...meaning they can be sold individually.

I echo what Mitch said about doing your due diligence about parking and other easements. Find out about all of these things, as well as occupancy rates, rental rates (month or month rent or one year leases), maintenance schedules (when will it need a new roof, windows, etc)

I agree with Greg. The team you build is so important, and you can make a lot more $$$ through qualified leads than receiving any referral fee.

I use a local lender that has in house underwriting. They are funding FHA flips with no seasoning.