The Science of Flipping - How To Build Corporate Credit feat. Tommy Thornburg

Starting point is 00:00:00 Make sure you have the business name, legitimize the business. Make sure you have the EIN number, the social security number for your business. And if we can help build a separate credit profile for the business, use business credit. Totally. Let the business pay for podcast and if you are not watching this, you should be because right next to me, I have one of my favorite guests on the planet, Mr. Tommy Thornburg from Prime Corporate Services. What's up, bro? How we doing? Dude, we are doing great. And we're helping people, educating people, getting them to understand money. The reason I think this podcast is going to be so great for everybody,

Starting point is 00:01:08 and everyone should be watching this, is A, me and Tommy are very charismatic together. But B, I think people really need to know that there's a lot of money out there right now. For sure. And you help people understand that, and that there's a lot of personal credit situations that you can get. There's a credit card process I put my students through that I think you were just like, oh my God, that's

Starting point is 00:01:29 great. Business lines of credit. And I think there's a lot of people out there that stick to wholesaling because they don't realize how much money is actually really out there that they can actually go get. There's always money. There's always money. If there's money to be made, someone will give you money. That's right. It's always, always the case for sure. And that's what I love about the message that you're helping with all of your clients is you're not only doing that for them and with them on the business side, but I've seen it and you're helping them a lot on the personal side as well. It's when you have good personal credit, your life is easier. When you have good business credit,

Starting point is 00:02:06 it's easier to run your business. So I love that you're doing that. Well, it allows you to do things like, so for example, I talk a lot about how the wholesale business is really an opportunity business. Drive as many opportunities as you possibly can. But what I'm trying to really encourage the audience is to say, you don't just need to be a wholesaler. There's a lot of money you have around you to fix and flip sure right credit card advances going and getting you know a credit card that is a zero percent promo offer and taking a cash advance on it so you can buy the flip yep now that is risky don't get me wrong but there's a lot of money out there building corporate credit so you can go out and get corporate credit cards that can do very similar things.

Starting point is 00:02:47 I think it's just something that really needs to be understood. And that's really why my partnership with you guys at Prime is so valuable. It's because you can help educate these people on how do you build corporate credit. How do you perfect your personal credit? And why do you even care to do any of it? Right. And why is that important? So, you know, you and I were just talking about kind of a process you put people through in terms of the mindset, right? Right. At the age of 60. So let's go through that process

Starting point is 00:03:13 for everyone else. Yeah. I love it. I, the example that we like to use is imagine if someone, when you were 16 years old said, Justin, I'm going to make sure by the time you're 18 years old, you have an 800 credit score. When you're 16, it's like, who cares? Cool. Yeah. Thanks a lot. Thanks for nothing. But when you're 18 and you want your first credit card, you want a student loan, you want to buy a house. You see how valuable that is at an early age, right? It's very difficult to build your credit. It's very easy to ruin it. Very. Been there, done that. So from a personal standpoint, you have your legal name, you have your social security number,

Starting point is 00:03:53 you have your credit score. And ultimately what we want to help everyone do is the same thing for their business, right? Make sure you have the business name, legitimize the business. Make sure you have the EIN number, the social security number for your business. And if we can help build a separate credit profile for the business, use business credit. Totally. Let the business pay for itself and then pay yourself from there. And what is, so what are, what are the actual rules and guidelines? So I don't mislead people. Isn't it something like two years, you want to have a business with some line of credit for two years before it really kind of starts to kick in where you can start to get some pretty heavy. Is that? Yeah. So there's, there's really three phases that you go through when building business credit. And in the starting phase, we call them starter accounts, where you're getting credit cards that you don't really want, right?

Starting point is 00:04:48 A Lowe's card, a gas card, something that inflates your score and builds that credit profile. Specific to the business. Specific to the business. Got it. For sure, yep. And we try and get starter lines that report on a monthly basis instead of a quarterly or an annual basis. So you can build that credit profile faster. So three to four months to get through those starter accounts. And then four to eight months, that's when you can start looking at actual

Starting point is 00:05:17 business credit cards. And usually it is around the two year mark where lines of credit start to open up for you as an option. And it's funny because I talk to my students all the time. I get every bank under the moon. Most recent one was like Citizens Bank, I think. Yep. Business line of credit. Yep.

Starting point is 00:05:34 PayPal's emailing me, oh, you deserve a business line of credit. Every bank at this point. Now, I've been in business. My company's been in business 15 years, so well into that. But I'd also tell everybody, even if you're just getting started, A, make sure you have the right entity, right? I would encourage you, and I'm sure Tommy would too, LLC first, taxed as an S-corp if you're going to be in the transactional business such as wholesaling and flipping. Yep. But go get that LLC credit card.

Starting point is 00:06:00 Go get that stuff started now. Yep. So you can start to utilize it. If you have a good bank, Wells Fargo, I've banked with them for however long. I can go open up an entity at this point that has no history and they'll still offer me something. It may not be a lot, but they might say, hey, do you want to take a $15,000 line of credit? Just because of my banking history with Wells Fargo and the amount of cash I have, et cetera. So I think it's really important for people to understand if you do this right,

Starting point is 00:06:33 there's a lot of money that you can start to leverage into this game. 100%. And if you're listening to this, you have the intent to be a real estate investor, right? So that's all the IRS is looking for. You can show a loss two out of your first five years in business. Right. If you're investing into education, coaching, those are expenses that can be deductible on the business. Yep. As opposed to just a liability or a debt load. Yep. Right. So if you can make sure that you're maximizing from a tax standpoint, one of the hardest things to build business credit is length of time. Totally. Right. People give up, they quit, they get discouraged or whatever. Right. It's going to be too long. I'm going to not do that or whatever, whatever the case is.

Starting point is 00:07:14 For sure. And it's, if you can build that from the beginning, the example I like to give is I'm okay with my business credit looking a little bit like a roller coaster because I'm borrowing money to make money. But I don't want my personal credit to look like a roller coaster because my wife would kill me. That I can get. So let's offer them something where they can get a little bit more informed. Because I think we're talking very high level, 30,000 foot. But you guys will, well, I talked into doing like complimentary call with people.

Starting point is 00:07:48 Um, the website prime corporate services forward slash TSOF. Yep. Uh, you agreed to do a complimentary call, just talk entity structure, tax strategy, see what people need, what they can get right in what they should be doing. Yep. If you're, if you're already structured, let us know. If you need a review, if you need to make sure that it's scheduled and everything's set up properly, we'll review that for you. Building business credit, making sure the taxes are filed

Starting point is 00:08:17 the right way, estate planning, the boring stuff that's super important. Super. I mean, the next step for us is I need to get my estate planning going, right? Like kids, wife, rentals. Like I just need to have this locked and loaded. I have three different life insurance policies. I have all this stuff that it's really boring, but it's really important. Right. And so I'd encourage everyone out there to just do the complimentary call. Just try to figure out what you currently have and then where you're at and then how to become better. I think that's really it is keep more of the money you're making. Coaching's a tax write-off.

Starting point is 00:08:52 There's so many write-offs that most people don't even know. A lot of people don't invest in coaching, but they also don't realize it is a full 100% tax write-off. Business meals are 100%. I'm buying dinner and I'm writing it off. That's right. No battle. No battle. And I'm going to let you. Perfect. So thank you for being on. I would encourage all you guys to go to that website. You'll see it right here if you're watching it on YouTube, primecorporateservices.com forward slash TSOF. I appreciate you spending a little time. I know you're a busy man here this weekend, but thank you for blessing us on the episode.

Starting point is 00:09:26 Thank you. Appreciate you. Peace. See you on the next episode.

The Science of Flipping - How To Build Corporate Credit feat. Tommy Thornburg

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