Real Estate Strategies And Business Credit

Real Estate Strategies and Business Credit
By Jack S Dunn

I am often asked about how is this credit can benefit real estate investors. There certainly a gold rush going on in bank owned properties, short sales, rehabs, foreclosures. People are losing their homes while simultaneously using creative methods to buy a new home. I am seeing investors get business credit to acquisition properties. I am seeing the same investors refer their clients who are soon to be losing their home, to the business credit service so they may begin rebuilding their access to credit lines and credit cards.

Typically when a homeowner is in foreclosure day will contact a foreclosure expert. In most cases this foreclosure expert inform the homeowner of the grim reality sat it is more likely they will achieve a short sale with the bank rather than a workout arrangement or loan modification of any sorts.

There are two reasons for this. One, banks are not really doing to many short sales. This this facade is becoming more and more blaring only obvious to homeowners as time passes. These oblivious loan modification companies are being blown out of the water by new regulations, and policies limiting what they can say and promise to unsuspecting homeowners. It's unfortunate that early on, loan modification companies were able to clean house when these services were making big news. This

Number two reason, the investor makes more money doing short sales. Certainly get help work out an arrangement that benefits the homeowner, the problem is the homeowner does not have money in most cases and these arrangements do not benefit the investor. So, in order for everybody to win home owner needs to lose their home.

This is the reality of real estate today.

Now so how do we use business credit to benefit all. There are credit lines within corporate credit services that can be obtained specifically for real estate businesses. Some are business only credit, if you are well est. and have a year maybe two years better even three or four, there are many programs available in the high dollar range debt will benefit real estate investors. However as, yes many people are seeking no credit check type business loans, or business only credit type loans to avoid revealing their personal bad credit. Simply because a lender requires that an investor uses a personal guarantee is not always a bad thing.

Our most popular unsecured line of credit for investors is a bank unsecured line of credit that requires a 700 FICO to obtain but does not require proof of income. This is a very powerful loan to obtain simply because, the person who with the 700 FICO can be added to the business entity to facilitate the loan. So in a nutshell it works like this. Investor builds a business entity, finds a person with a 700 FICO but no cash to invest, a partnership a merge is, and the business gains $100,000 credit line.

Homeowner begins the process the second day find that they are going to be in foreclosure and not save their home. They spend the next 4 to 6 months building corporate credit, so they may use the credit to help transition their household and their life to a new home. Homeowners can start secondary businesses that can obtain $50,000 in credit lines that can be used for many things. An example would be, homeowner obtains a Home Depot credit line, seeks out a fixer-upper property, negotiates a "lease to own'" that is extremely favorable to the both owner and the new homeowner, uses is credit line to fix up the property they're about to move into, thus not having to put a down payment towards the property for purchase, everybody wins.

Jack has been teaching small business owners and entrepreneurs the most effective methods to establish business credit using affordable tools without spending thousands. Visit Jack site to learn more about unsecured line of credit and what it can do for you.

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