How to Build Business Credit to invest in real estate

Never use your SSN for business credit!!

(Disclaimer – This is information that I was able to gather together, I take no responsibility)

Below is something I put together from research that I have performed.  You should be able to build up to $200,000 worth of business credit which you can use for real estate investing.

 

1. Establish your Entity (Corporation or LLC)

2. Obtain an ein # on-line immediately (Free of Charge) https://sa1.www4.irs.gov/modiein/individual/index.jsp

3. Get a mail box at a small mom and pop Mail Center using the real mail address NOT a P.O. Box number. Get your phone bill forwarded to this address.

4. Obtain a business telephone line at home using business name and
have it listed in the business pages and directory assistance.

5. Get a free Duns number www.ccr.gov and DO NOT PAY FOR CREDIT BUILDER -After you have at least 5 business accounts reporting, you’ll receive a paydex rating (similar to FICO for personal credit). This is what credit builder does.

*REMEMBER – a paydex score will only take into account your payment history. Unlike personal credit, this is counted in days. For example, if you pay your invoices 14 days late, it will be reported as such. If you pay your account off before the statement or invoice comes, it will be reported as such. The bottom line: Pay your invoices on time, and you will get a better paydex score.

6. Open a checking account using business information

7. Set up the following business accounts, and make at least one purchase, you want to pay this off BEFORE the first statement hits.

FYI – You can obtain cell phones immediately using the ein # with no pg.

-Staples, Office Depot, and 4 or 5 net 30′s

Go to https://eupdate.dnb.com/default.asp to check your paydex score.  DO NOT check this everyday, at most check it once a week. They only update on the weekends, so really there is no need to anyway.  Once you have a paydex score of 75+, you can apply for Lines of Credit (herein referred to as “LOC”) or business Credit Cards without any sort of PG.

(WHEN you have at least 6 or 7 reporting)

-Marathon, Conoco, Sunoco, Shell (or any 3 or 4 gas stations of your choice)

(wait 60 days……………)

-Home Depot revolving, Home Depot Expo, Lowes

(wait 60 days…………)

-Dell, Wal-Mart, Sams
(wait 60 days…………)

-HDMC, BPMC, Sams Discover

 

(wait 60 days…………)
By now your report should be nice, all I can say is, ask, and ye should receive. SBA Loans, LOCS, Etc. – Make sure that when you submit the applications that you send a professional cover sheet (with your company logo to ensure you look “corporate”) along with a copy of your state corporation document and a copy of your phone bill in the company name. Check Requirements prior to applying.

 

Most companies will not ask to see financials for loans of 50K+

Citi Trio, Key bank, BofA, wells fargo small business.

(wait 60 days…………)

Discover, Amex, Chase, Advanta

(wait 60 days………… you get the idea….)

Accurate Office Supply � (800) 325-2551 � Requirements:
PG: No
Paydex: No
Net 30, revolving account, 3 trades and 1 bank trade. Call to have application faxed to you. Reports to D&B, but does not report to Experian.

Best Buy � (800) 811-7276 � Requirements:
PG: No
Paydex: Yes � 65+

At least 2 years in business.

Chevron � (888) 243-8358 Requirements:
PG: Yes
Paydex: No

At least 2 years in business, DNB check revolving acct � net 30. Apply on-line. Reports to D&B and Experian.

Conoco, Inc. � (800) 764-9500 � Requirements:
PG: No
Paydex: No

Net 30-full balance, apply on-line located in 23 states, ask for locations. Reports to D&B and Experian.

Diners Club � (800) 234-6377 � Requirements:
PG: Yes
Paydex: No

Corporation accounts (minimum 5 cards) 3 years in business, $200,000 net worth, each card holder gives personal guaranty. Call to apply. Does not report to D&B or Experian.

Exxon Fuel � (800) 438-3996 � Requirements:
PG: Yes
Paydex: No

Net 30-full balance, 1 year secured or 3 years in business. Apply on-line. Does not report to D&B. Reports to Experian.

Fry�s Electronics � (714) 688-3000 � Requirements:
PG: No
Paydex: No

3 trades, 1 bank trade, net 30-full balance. Must submit financials and balance sheet before approval. Does not report to D&B or Experian

Grainger.com � (310) 327-7370 � Requirements:
PG: No
Paydex: No

Net 30-full balance. $1,000 min. credit limit, business license needed along with 1 bank trade and 2-3 other trades. Reports to D&B, but not to Experian.

Home Depot � (800) 685-6691 � Requirements:
PG: No
Paydex: No

2 years in business. Revolving account and/or net 30. Apply on-line. Reports to D&B and Experian.

JC Pennys � (407) 788-4022 � Requirements:
PG: No
Paydex: Yes

At least 6 months in business and paydex score required with no delinquencies. Call to apply. Does not report to D&B or Experian.

Kinko�s � (800) 488-3705 � Requirements:
PG: No
Paydex: No

Revolving account net 30, apply online, will check D&B number and verify business address. Reports to D&B only when requested by D&B. Does not report to Experian.

Lowes � (800) 445-6937 � Requirements:
PG: No
Paydex: No

Revolving account or net 30. 3 years in business. Reports to D&B only.

Macys � (800) 933-6229 � Requirements:
PG: No
Paydex: No

2 years in business and some credit history. Call to have application faxed to you. Reports to D&B and Experian.

Mobil Gas � (877) 959-1007 � Requirements:
PG: Yes
Paydex: No

Net 30-full balance, 1 year secured account or 3 years in business. Apply on-line. Reports to D&B and Experian.

Neiman Marcus � (800) 685-6695 � Requirements:
PG: Yes
Paydex: No

Must be in business 2 years and signer on account gives personal guaranty, call to have application mailed to you. Does not report to D&B, but does report to Experian.

Nordstroms � (800) 964-1800 � Requirements:
PG: No
Paydex: No

Net 30-full balance, 3-4 trades, verify 2 (trades should be net 30 accounts as well) call for application. Reports to D&B and Experian.

Office Depot � (800) 729-7744 � Requirements:
PG: No
Paydex: No

Revolving account, net 30. Must be incorporated. Print on-line and fax. Reports to D&B and Experian.

Office Max � (877) 633-4236 � Requirements:
PG: No
Paydex: No

Must have some credit history. Apply on-line. Payment has to be made after invoice is received. Reports to D&B and Experian.

Orchard Supply � (408) 281-3500 � Requirements:
PG: No
Paydex: No

Net 30, 3 trades with at least 3 months activity and 1 bank trade. Call to get application. Does not report to D&B or Experian

Phillips 66 Gas � (800) 648-4199 � Requirements:
PG: No
Paydex: Yes

Duns report pulled, 3 trades, 1 bank trade needed. Reports to D&B and does not report to Experian.

Radio Shack � (888) 773-2435 � Requirements:
PG: No
Paydex: No

Revolving Account, net 30. Reports to D&B and Experian.

Sears � (800) 917-7700 � Requirements:
PG: No
Paydex: No

2 years in business, revolving acct, net 30, call to get application faxed to you. Reports to: D&B and Experian.

Sinclair Oil Gas Card � (800) 340-3466 � Requirements:
PG: Yes
Paydex: No

At least 4 trades, net 30-full balance, personal guaranteed required from each cardholder. Does not report to D&B or Experian.

Speedway Super America Fleet Gas Card � (800) 643-1948 � Requirements:
PG: No
Paydex: No

Net 30-full balance, at least 1 year in business.

Staples � (800) 669-5285 � Requirements:
PG: No
Paydex: No

Revolving account net 30. Reports to D&B and Experian.

Texaco � (800) 839-2267 � Requirements:
PG: No
Paydex: No

Need some credit history. Apply on-line. Reports to D&B and Experian.

Union 76 � (800) 944-7676 � Requirements:
PG: No
Paydex: No

2-3 trade references, 1 bank reference, duns check done on large businesses. Does not report to D&B or Experian

Wright Express Fleet Card � (800) 395-0812 � Requirements:
PG: Yes
Paydex: Yes

Some credit history, 3 years in business, net 26, full balance. Reports to D&B only.

 

{ 0 comments }