Frequently Asked Questions
Below are some of my most popular questions. Hopefully this addresses and concerns and if there are still more questions, email me at: email@example.com.
You buy an income producing asset (like a rental property) with none of your own money. The rental property must give you a profit (cashflow) at the end of every month after all expenses and debt service are paid.
“Isn’t buying properties 100% financed risky?”
It can be risky if you don’t know what you’re doing. Pretty much, all investing is risky. Life is risky. However, if you do your research and seek qualified professional guidance in your investing, then those risk become calculated and greatly minimized.
“Do I have to have a business in order to get business credit?”
Yes. If you don’t have one, it’s easy to start one. Most “secretary of state’s” allow you to create an entity online in minutes. Seeking professional help is always prudent.
“Normally, what are the qualifications for applying for business credit?”
Read the preview of our eBook to find the qualifications.
“Why buy property 100% financed when I can use my own cash?”
Good question. You can get richer quicker with debt than using your savings. I don’t know about you, but I can take some people months to come up with $100,000 cash. Why not take a day or so and fill out some applications and get access to $100,000? Plus, if you really had $100,000, why use it to buy a single family house cash when you can use that same money as a down payment to buy a $500,000 apartment building? Why not use other people’s money to make money while you use your hard-earned cash to have fun?
“How much debt can a person afford to take on?”
It depends on the person. Some people are risk-averse, some are not. Some people understand that debt is a tool to build a empire of wealth, some see debt as a tool to dig them deeper in the hole.
“Does my business or company need to show it’s extremely profitable to qualify for business credit?”
Income verification is not required.
“What is the minimum and maximum amount of funding I can receive by leveraging my business to buy real estate?”
With an entity less than 2 years old, up to $75,000. With an entity more than 2 years old, up to $150,000. Funding comes in the form of business credit cards.
“Will qualifying for business credit effect me negatively in anyway on my credit? If so, are there ways to remedy this?”
The cards that are approved are BUSINESS CREDIT CARDS and the new accounts report to the BUSINESS CREDIT BUREAUS ONLY. The existence of these new revolving accounts, and the usage of these revolving accounts will not appear on the guarantors personal credit report. The accounts and usages on these accounts will report on the BUSINESS CREDIT PROFILE. Some business credit consulting firms will send out applications to 5-8 different local and national lenders and credit unions. Each credit extending lender must verify theguarantors personal credit status before granting approval. During the application process, the client can expect to see 5-8 new inquiries appear on their credit report, spread between the three credit bureaus. These inquiries will come from the banks that are applied to. Each credit inquiry will drop credit score in its corresponding bureau 2-4 points. This drop in scores is temporary, and typically, clients scores will recover within 6 months.
“How many rounds of business credit can I do?”
As many as you want as long as you meet lenders qualifications.
“What are certain things I should or should not say to credit card companies if they call me to ask questions?”
This is handled on a case by case basis. Questions like this only matter for clients of business credit consulting firms that have qualified for funding and sent in their full application.
“I have bad credit. Can I still buy real estate 100% financed?”
If you cannot qualify for mortgages, business credit, or hard money, it may be difficult for you to buy real estate 100% financed unless you bring a partner into the deal.