Epic Real Estate Investing - Building Business Credit Fast for Real Estate (how to w⧸ new LLC) | 1251

Episode Date: January 12, 2023

You need to be in business for years to get business credit for your real estate investing, right? Or you need a good credit score to get it, don't you? Not true! Building business credit fast for your real estate investing business seems like a myth for most people, especially if they have bad personal credit, no revenue yet, or just set up a brand-new LLC. A little bit of knowledge and the right resources can vaporize that myth and put anyone on the fast track to endless lines of business and corporate credit to scale their business so they can sleep peacefully at night. Listen to the new episode and find out how to do it the right way. Are you ready? Let’s go! Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. You need to be in business for years to get business credit for your real estate investing, right? Or you need a good credit score to get it, don't you? Not true. There's a lot that most people don't know about business and corporate credit. And I'm going to reveal all right now about getting it and using it to grow your real estate business at a faster pace than you're growing right now without it. Even if you're thinking it's too complicated, it's just for established businesses, or your personal credit score will get in the way. I'm going to show you how easy it is to get started and the specific ways of how you can use this powerful tool to take your real estate business to the next level.

Everything you need to know about business and corporate credit to grow your business is coming up right now. Welcome to the all-new, epic real estate investing show. The longest running real estate investing podcast on the interwebs. Your source for housing market updates, creative investing strategies, and everything else you need to retire early. Some audio may be pulled from our weekly videos and may require visual support. To get the full premium experience, check out Epic Real Estate's YouTube channel, epicrerei.tv. If you want to make money in real estate, sit tight and stay tuned. If you want to go far, share this with a friend.

If you want to go fast, go to reiase.com. Here's Matt. The truth is, many businesses fail because they lack the funds to keep their business. running. But if you have that extra money and set it up the right way from the start, it puts your business in a position to take down the best deals, to scale your marketing, to pay your employees, to keep the lights on. I mean, that list, it's endless. Every business needs money to function. That's just the way it is in the society that we live. And here's why you should really pay attention. If you've made some mistakes in the past or you had some

unlucky breaks that have negatively impacted your personal score, your road to recovery can be much faster building corporate credit than it can be trying to repair your personal credit. You see, the painful reality today is a single source of income is becoming more and more of a risk to your livelihood, to your American dream. And in the United States, more and more people are going to need their own business or at the very least a side hustle to survive. He says, yeah, inflation peaked, but it's not the last peak of this cycle, let alone to thrive. So building corporate credit is essential for everyone. And real estate, it's an idea. deal side hustle because if you were to just flip a single property every other month or so,

that would equate to a full-time second job for most people. Or maybe selling thousands of widgets online, whether that be through Craigslist, a network marketing company, an Amazon store, I don't know, trading Forex. You see, you don't need to flip a bunch of houses every month to completely transform your financial situation. Now, Business 101 says that business is business and personal is personal, meaning you know your legal name, right? You have a social security number, and a credit score, that's your personal stuff. And then when you go into business, you want to do the same with a different name, an EIN number.

That's a social security number for your business. And a business credit score, that's your business stuff. And when you create a separate credit profile for your business, it's easier to keep your personal credit stabilized and healthy. It's okay if your business credit looks like a roller coaster. And it likely will if you're doing real business. And when you use it this way, it builds up your business credit score. And that will result in lower-eastern.

interest rates and bigger lines of credit, of which equates to growing faster. But even better, your business will be paying for itself and thereby paying you. I introduced a private REI-A's client of mine to the people that I used to set up my business credit. And he took on their prime business assessment to get a free roadmap to $100,000 in business credit. And I remember him telling me how surprised he was by how little there was to do and how simple it was to get.

And I asked him, how has this affected your business? And he was like, you wouldn't believe how big of a deal it is. And in my mind, I was like, well, actually, I do believe it. But he went on to explain how he's been using it for his marketing, his earnest money on deals, down payments on his flips, which most hard money lenders won't even touch. And the peace of mind knowing that he's always prepared for the unexpected cost that can frequently come up in this business is it's worth its weight in gold.

And then he explained once a deal is done, the money just goes back. It pays back the credit line and it's there for his, next one. And he's now doing more deals and better deals because of it. He's not constantly hustling to raise money anymore. He's saving tons with lower interest payments, and it's been a real game changer for him. And with everything being on one line of business credit, it's simplified his business tremendously from an organizational standpoint, meaning no more shoeboxes of receipts at the end of the year. And after just a few deals using his credit line, paying a back, using it, paying a back, he has demonstrated his creditworthiness. And his creditor has

raised his credit line of $100,000 to $250,000 in relatively a short period of time. And now he's getting constant promotional offers from other sources of 0% credit, of which he's using those too. And him telling me about his experience, it brought back memories of when I took on too much debt with hard money lenders. And I remember how difficult it sometimes was to keep up with their high interest payments. All I would really take is a delay in a deal, or God forbid, a deal falling through to launch me into an absolute panic attack. And I'd worry profusely about covering my bills and I'd have to surrender deals to other investors because I needed the cash. You know, I'd make 10K or something that would buy me another 30 days or so, but the clock was always ticking for the debt

collectors. A business line of credit back then would have made all the difference in the world with regard to my peace of mind and peaceful sleep. And it doesn't matter if your checking account is running on empty or if it's loaded with a million bucks. Keeping your personal stuff and business stuff separate, it's priceless when it comes to your sanity. And I tell you these stories because I know you're thinking, is it too early for me to get this type of credit? Or have I done enough deals to warrant this? And what I would tell you is this. The earlier you start, the better. So start now, because it won't be that long before you're thinking, thank God I watched that video back then and got the ball rolling.

Tomorrow belongs to those that take action today. Pick a time there for your own prime business assessment and start the process. They're going to lay out a simple roadmap for you on what there is to do. For example, you may have to set up an LLC first or get your bookkeeping in order and seizing your business a bit. I don't know. Or you may be able to jump right in and get a business line of credit

or anywhere in between. Everyone is going to have a slightly different roadmap to follow. And it doesn't matter if you're doing deals consistently, or you've yet to get that first one done. The sooner you set your business up like a business, the faster you'll get off the ground. If you're brand new, let them know that. If you're a seasoned pro, let them know that too.

They can talk at any level so that it makes sense to you. And be stray with them with regard to where you are now and where you want to go. And you'll walk away from this call as time well spent. You can go to assess mybiz.com. That's biz, B-I-Z with a Z. You know, early on, I made some sense. mistakes. I was more focused on just making some money than I was running a business. So I had to

restart after a couple years. And it was more painful to do this than it would have been had I set my business up the right way in the beginning. Seriously, the expenses were, I don't know, probably 10 times to go back and fix things. And you don't want to experience that. You know, I remember having made a vision board for my business back then. And I felt, I don't know, a little goofy doing it. But as I shared with people, I discovered that a lot of people make these. And I discover what so many people's visions have in common. They've got, you know, vacations on them. They've got the second homes, the fancy cars, and we all kind of dream of the same things. Well, my family and I, we just redid our vision boards this past summer. And this time,

envisioning what my business would be like in five years, ten years from now was a much bigger part of my vision, because if I focus on that, all that other stuff, it's automatic. So give yourself that vision to, you know, what the end game looks like from a business perspective. Setting that correctly up front is such a big part of making those visions and dreams come true. I know you're excited about building your business, but no, it's not just about looking for deals, talking to sellers, and flipping properties. To complete the picture, there's another side to it that just as important, like entity structure, bookkeeping, tax planning, asset protection, and what we're talking about right now, corporate credit

lines, keeping your personal and business credit lines separate. The first step, it's easy. It's free and it's fun. assess my biz.com. And that wraps up the epic show. If you found this episode valuable, who else do you know that might too? There's a really good chance you know someone else who would.

And when their name comes to mind, please share it with them and ask them to click the subscribe button when they get here and I'll take great care of them. God loves you and so do I. Health, peace, blessings, and success to you. I'm Matt Terrio. Living the dream. Yeah, yeah, we got the cash flow.

You didn't know home for us. We got the cash flow. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com.