BUSINESS CREDIT

After you have opened your business bank account, ask the bank to issue you a SECURED visa or mastercard. You then will deposit around 300.00 into an account and they will issue you a card based on the amount you have in the account. They also report this to the business credit bureaus. This is a great start to getting your business credit off the ground.

I will need to apply some of these right away. Didn't know 'til now. Thanks again.

Rina

GET LISTED IN D&B’S DATABASE

D&B D-U-N-S® Number
A free service that helps you get listed in D&B’s database with a unique nine-digit identification number. (Similar to your personal social security number, but it allows others that are issuing you credit to look just at your business credit file and not your personal stuff.

Getting a D-U-N-S® Number alone will not establish a complete D&B credit profile for your business. To establish a credit file and obtain a D-U-N-S® Number at the same time, I highly recommend you choose Credit Builder if you can afford it. Its great and IT WORKS.

I hope this helps others as well. I will post more info on business credit later.

Please click on the link below to go directly to the IRS website and apply for a tax ID number. You can do this yourself for FREE. No need for an account.

https://sa2.www4.irs.gov/modiein/individual/index.jsp

Part of establishing business credit is actually obtaining it. In order to do this you must first market you "PLAN" and show others, whether it is HML (Hard Money Lenders) or whomever, that you know what you are doing and you know how you plan do do it. Lets say you have a great piece of vacant land and you are looking for other investors or HML for it. If you approach them with nothing on paper all tey have is a verbal pipe dream, but it you approach with a Marketing plan for that property, they ill listen and pay attention and if you present your plan well you will walk away with what you asked or.

Business credit is not complicated, quite simple actually. So here is a link to A MARKETING PLAN forum that may assist you with this endeavor as well. Good Luck. http://www.deangraziosi.com/node/4524

Thanks Anita, great information. I've been looking into this for quite some time and keep getting conflicting information. Could you give me an idea of how much it costs? I'd really appreciate it. You're always an inspiration to us!

These info makes it clearer to me. But I just have one question. I opened my chapter C corporation last year but it was not reported to D&B, it was not active. I'm going to use that corporation to start my REI. How do I report it to D&B without using Credit Builder? Thanks in advance.

Sharon

Anita, thanks for pointing out this very important info.

One of the things I learned while attending an REI club was the importance of Business Credit. All of what you have pointed out is true.

Rule of thumb. Use your business credit card to pay your cell,IP, and gas, every month. Pay on time

Call the credit card Co. and ask them to report your activity to the credit bureau. Since Business credit cards aren't required to report to the bureau's they sometimes don't. Business credit cards with Office max and home depot are also great ways to jump start your line of credit.

When you open your business checking account, move money in and out, to show activity. Banks like active accounts.
Hope this helps ,
Zeek

You can create a credit file for your company by going online with Dun & Bradstreet and doing it online or calling their toll free number ad this is FREE....

what would be the bennifit for registering with d&b? why not just use your EIN?

thanks,
D

would be that like I said before, D&B is like equifax or transunion for businesses. Thats the credit reporting agency. If you establish a record for your business there it will allow you to add info personally instead of just relying on what someone else puts in there for you.

I know with an LLC, you're supposed to keep your personal and business "stuff" completely separate. Well, I just started using the business and will be purchasing my first house with it this month. AND I'm starting to transfer our other rentals over to it. My question is this: Since obviously I didn't start out with any business capital, I've been putting our own personal resources into the business checking, along with current rent money, but our expenses are far outweighing our income right now with rehab on the new houses. Is there a line to draw with putting in personal cash? Would I consider it a loan from ourselves? (I'm not writing out any business checks for our personal expenses). I know that's probably a question for the accountant, but you are much more creative than they are.lol

Rina

RINA
THAT IS A GOOD QUESTION AND FROM PAST EXPERIENCE LET ME JUST SAY THAT YOU ARE CORRECT IN THINKING THAT YOU SHOULD LIST IT AS A LOAN. PUT IT ( ANY MONEY FROM PERSONAL ACCOUNTS) THAT YOU HAVE SPENT INTO A SEPARATE ACCOUNT IN YOUR ACCOUNTING PROGRAM AND TITLE IT LOAN AND MAKE YOURSELF THE LENDER THEN MAKE PAYMENTS BACK TO YOURSELF EVERY MONTH JUST LIKE YOU WOULD IF YOU HAD ANY OTHER LAN. THAT WAY YOU CAN FUNNEL THE MONEY BACK INTO YOUR PERSONAL ACCOUNT WITH OUT IT HAVING TO LOOK LIKE YOU WERE TAKING FROM BUSINESS FOR PERSONAL USE

BTW - SORRY ABOUT THE CAPS, MY CAP LOCK IS STUCK....LOL

ANYWAY, THATS THE ANSWER TO YOUR QUESTION AND YOU MAY EVEN DO A BALLOON PAYMENT IF YOU LIKE BUT JUST MAKE SURE IT IS LISTED AS A LOAN PAYMENT. THE IRS, IF YOU ARE EVER AUDITED WILL KNOW WHAT YOU DID AND UNDERSTAND IT BUT SOME ACCOUNTANTS THAT ARE NOT AS KNOWLEDGEABLE AS THEY WOULD LIKE TO THINK MAY TELL YOU DIFFERENT BUT I HAVE DONE IT LIKE THAT FOR YEARS AND KNOW FOR A FACT THAT THAT IS A CORRECT WAY TO DISPENSE THE FUNDS YOU USED FOR THE PROPERTIES FROM YOUR PERSONAL COUNTS BACK TO THEM WITH OUT TAKING A HUGE HIT. ALSO REMEMBER THAT IF YOU MOVE MORE THAN 10k AT A TIME THE IRS WILL HIT YOU IMMEDIATELY SO MOVE IT IN INCREMENTS UNDER 10k.

THE PROFESSOR IS BACK (RINA)....LOL

I'm sure I'll be asking more about it as I go.

Rina

We have only been in REI since April and have the same issues. Using quickbooks, we have set up the same type of loan/liability for the LLC and paid ourselves back. This seems to work well.

We just started working on getting a VISA. Already have a Lowe's credit card with 7,200 limit. Get this; Lowe's has a special deal right now for "Zero monthly payments & interest for 12 month." NOBRAINER!!!!!

Regards,
Rohn & Shelley
DeJor Properties, LLC

I started my LLC in April, too. I was able to get a credit card through the bank for $10,000. I asked the coaches if I should get one through Menards(which is probably a smaller version of a Home Depot store), but they advised at the time to stick with the one card. Maybe now would be a good time to get another to build more credit. And the specials and incentives on the store card are great, like you said.

Rina

Home Depot offered the same thing as Lowe's... Give these companies a try for business credit cards. I just got turned on to the them, so I'm passing them on to you guys. There's plenty of them there, I'd try them all, the more the better for you! Let me know how you make out:
http://www.credit.com/r/card_business/af=p58391&ag

Good Luck!

Dear, Elena M., Rina, Anitarny and DeJor!

THANK YOU All so very much!
When I log on, there is Always a question that "remarkably" one of
you four, has just posted and/or revised.

Here is what I came away with in just One half hour:

Business Credit: 1. Get you EIN (Employer Identification Number, in case
you haven't had exposure to the acronym.)
2. Consider registering your business with a business agency. Why? You want to establish a credit history, just like you have with "people" credit bureaus, i.e., Equifax, Transunion, etc. Why #2? This will present your business as a real
and viable entity.
3. Get 5 credit cards. If they can be obtained from a business company as Home Depot. etc., all the better. Use them, pay them on time.
4. Pay money only from business activity.
[ If you must do so from your own accounts, consider one giant reimbursement back to
yourself, when needed and call it a Loan. (very smart Anitarny). ]

And Elena, thank you for this link you posted!
" http://www.credit.com/r/card_business/af=p58391&ag "

And, zeekjones, Thank You regarding your post about Business Credit Card Companies not necessarily reporting activity to Bureaus - very helpful.

I want to say a personal "Thank You," to each of you. The more you share, the better informed and educated everyone here becomes. And ME TOO! ( ALL EXCITED LOL).

You all, ROCK!

I am going out to establish even more credit - right now!

Wish me Luck!

-
quicksilver
Now that's what I call, Success!

That's what this site's all about, sharing info, encouraging, motivating and helping each other become successful. That's why I joined, I've learned so much from the folks here in the short time I've been a member. So much more than any other site or forum I've participated in. The most remarkable thing is how generous everyone is with information or knowledge they have. There is something SO special about this site and everyone on it, that I'm SO glad to be a part of it. Keep us posted on your progress!

We've learned a lot from your posts as well! (and I love the name, by the way. )
You're right. I think everyone agrees that from the time one steps foot in the door of this site, a person just keeps learning and growing. It's so cool to have EVERYONE here be a teacher and a student. I learn something new every day, AND we have everything documented to go back to time and time again.
Whoever had the idea to start this site, is brilliant. (It was probably Dean, and of course we already KNOW he's brilliant.)

CREDIT - Thanks for the pointers everybody. I'm gonna go get me some cards.

Rina

Hello, I am a newbie and I have no money and am trying to figure out my first house purchase. Since I have no extra money, I am delaying my LLC process. With the first house is it really that dangerous? It will most likely be a small purchase and flip.

If you are doing a flip, don't let not having an LLC stop you.
Just focus on your flip, make sure you can still make a profit while selling just under fmv.
Zeek

If you just assign the contract or flip it for a finder's fee there's nothing in your name so you don't have to worry about that. It's only when the property is recorded in your name that opens you up to that risk. If there's nothing in your name you're in the clear.

Hi...I have a question about purchasing my first home. I'm a new investor as well as a first time homebuyer. Since my home will also be my business address/office, should I purchase my home under my personal credit or my business credit?

Welcome to the DG family glad to have you here.
I suggest using the business credit on investments that can make a good return and will pay you back quickly, then you can even get more lines of business credit at a much better rate than personal and higher amounts. ;D

I figured as much for the investment properties but this would be my primary home residence/office, do you still suggest that I use the business credit?

I'm sorry I didn't make myself clear. I wouldn't use business credit for your home. That's a liability, use it on assets (something that will make your money back quickly). Use your personal credit on your home even if you're using it for your business.

That makes sense. Thank you so much!

You're welcome! I'm glad it made sense, I wasn't sure if I made it clear enough, I'm a little tired and the brain is misfiring... LOL!
Best of luck to you. Keep us posted on your REI.