***One of 4 main strategies for developing business credit Youre welcome.*** Heres a strategy a few of my wealthier clients in the Winners Circle have used to establish business credit. They later used that business entity and business credit to purchase rental income properties. My group (most of the time ME) is generally contracted to to stay on their son or daughter and hold them accountable to their horrible spending/saving habits. And this is why Im typically always sleeping at someones residence with a lot of money during the week trying to get their still living at home-kids together. You wouldnt believe how bad the children of high income/no time people are with money (still not worse than military men or those with irregular monthly income though). This, assisting clients on purchasing vehicles at steep discounts and teaching so called - rich kids how to invest like their parents are our # 1 go -to services. Now, remember, business credit is your choice if you want your business to go down that path. Personal credit is for fools. 1. Establish a real business (Im talking about a real business - like a consulting company, construction, whatever) that actually makes some sort of money each year. 2. The business should be an LLC, S Corp etc with an EIN. Well call your business Avant-Garde LLC for the purposes of this post. 3. Become the angel investor for Avant-Garde LLC. Remember Businesses get funded by three main sources: A. Investment capital (i.e. angel investments or venture capital second/3rd round etc) B. Business loans C. Government grants So by being your own business “angel investor” you are putting up ..say.. $30k of capital from your own pocket and infusing it into your business. 4. When it comes time to purchase your next car, dont purchase it in your name, lease it under the business name. Since your business, Avant-Garde LLC has $30k in capital, and zero business credit, you pre-pay half of the lease on a business vehicle thus easing the finance companys worries about your business credit worthiness. At this point your business not only shows a credit history beginning to be established by a well known bank, but youre receiving a tax deduction for that lease as a tax deductible business expense. Youre also avoiding having to personally buy a car as well. 5. The lease is up in 24-36 months, your business credit is strong, and you start shopping around for $70k rental properties in Rialto, Moreno Valley etc. Build your real estate portfolio slowly by starting small and working your income up each year to where banks are knocking on your door to lend your business money. And youll turn most of them down because you remember how long it took to get here. 6. Scroll through these steps again and try to find where I said anything about you using a personal credit score or opening up personal credit cards to do this though. Donald Trump has never filed personal bankruptcy, folks! The keyword was P.E.R.S.O.N.A.L. Think about that for a second.
Posted on: Thu, 25 Dec 2014 23:45:55 +0000
Trending Topics
Recently Viewed Topics
© 2015