-I’m new to this boad and real estate investing. I saw the link on the home page for a course that advertises “how to obtain up to 200k in unsecured business lines of credit”…for your business/real estate investing. has anybody purchased this program?
Is it legit, or is it just more vague, trivial info. like 9 out 10 other “programs” out there that I’ve spent money on?
I’ve been in the mortgage business for years and just recently started my own 1 man company and am currently trying to build business credit via dunn and bradstreet etc…However, it is an on going process and something that will likely take 12 months or more to build the necessary tradelines and paydex score in conjunction w/ company revenue before any bank I know would even consider spotting an unsecured line of credit. which brings me to another point…
***???has anybody every obtained an SBA guaranteed loan for their “other” business and then taken the proceeds of the loan and used it for real estate investing?*****I’ve been checking into getting an SBA guaranteed loan for my mortgage business…and then I had this Idea that I could use some of the proceeds to secure a line of credit at the bank and then use that line of credit for real estate investing. Does anybody know much about SBA guarantees and what accountability if any is there for how the loan proceeds are spent? I know they are supposed to “be used for the business/specefied purpose” however, once the loan is funded who would their be to hold you accountable…as long as the loan payment was being paid as agreed?
Seriously, if any of you PROS, "“tedjr”(I know you’re real active on here and always have good commentary)… etc… (moderators etc…)
that have been around the block a few times could give any insight into my ? re SBA I would really appreciate it. On the surface my idea seems practical and creative enough, however, I don’t know enough about the SBA guarantees and what stipulations, if any, they interject into them…As far as I can tell, if they guarantee a loan for a lender and that lender approves the loan, they just fund it…you (your business) gets the money and that’s that. Assuming you pay as aggreed per your promisory note, I’ve not seen where there are any stipulations on how you spend the money. I know you have to sight reason in your proposal and SBA application, but again, once the loan funds, I don’t know if there is any one that oversees or audits how you spend those funds…assuming it’s a loan for let’s say “working capital” and not for a piece of commercial real estate that you’re buying for your business where they, would likely make proceeds payable to seller of property…
thanks again! Any responses are really appreciated!
Yea, I’ve talked w/ a couple local banks, but ther personal bankers I’ve talked w/ just refer me to a 3rd party…and then L.O’s that I talk w/ don’t really want to offer any specifit insight for some reason. I also talked w/ the local SBA office and the persons that I talked w/ their where about as dumb as a fence post and steered clear of directly answering my ?'s…it was like pulling teath…then they directed me to the local SCORE chapter and they said we don’t know much about SBA programs…so it’s been like a never ending circle of people who work w/ SBA that all say they don’t know anything…It’s actually pretty irretating!..I’m like well who the blank does now then…don’t you get paid to work here!..but anyway, If anbody has ever obtained and SBA guarantee and could offer any insight into the process that would be great. I know this is not a small business board, but I think I can use this as a means to obtain funding for real estate deals…hopefully!
From my understanding, the SBA is now useless. Without getting too political, Bush has dramatically cut funding so it’s a skeleton of what it used to be.
That course is junk from what I’ve heard. Basically, his bank turns him down for a loan. He goes around to a bunch of others and someone gives him $100k business loan. He goes back to his bank and says match it or I’ll leave and they match it.
That course is junk from what I’ve heard. Basically, his bank turns him down for a loan. He goes around to a bunch of others and someone gives him $100k business loan. He goes back to his bank and says match it or I’ll leave and they match it.
Marcus, did you purchase the course or just hear about it? If so, from whom?
Just curious, but you say that it’s junk, then say that he DOES get a $200K in unsecured lines. What exactly makes that junk? If he got $200K and shows you how to do it, too doesn’t that fulfill what he is promising to do? Heck, even if he tells you where he got is first $100K, that would be pretty good. Am I missing something?
do you know the basic premise of how he obtained a 100k credit line short of having a High paydex score or a high personal score?
obviously w/ strong enough credit it’s doable. He presents in his pitch though, that “anybody” can do it…leading one to believe that good or bad credit its doable, which is where I call b.s.
If you dont have good scores business or personal, you’re not getting anything!
It’s been talked about on here before. The basic premise is to shotgun approach it and ask for loans until you are accepted. I wouldn’t call that any great secret.
When you start your business you should get credit card applications. Fill them out and get a couple of credit cards. Then start using them and paying them off. It’ll build the credit of your business. There’s also people that’ll charge you $5k to help build your business credit.
No, sky, I don’t know HIS basic premise for obtaining credit lines. What I know is that Kish promises that he can get you up to $200K in unsecured business credit lines and offers you the lenders that will approve you, based off of his approach, without a paydex score and without good personal credit. If he delivers that, my question was, what makes it “junk?”
As to your “anyone” can do it. That’s true. As Marcus says, when you start a new company, you get hammered with new card offers daily. They all know that you’re a new company and most will issue you a card with a pretty generous credit line. So yes, anyone can get lines of credit (that’s what a CC is, afterall).
I haven’t read Kish’s advertisments, but I doubt that he promoted it as some “great secret.” In fact, there is nothing on the market about REI today that is any great secret at all. Everything out there has already been done, in some way, shape or form. And actually, everything out there for sale is offered somewhere else for free, if you want to take the time to research it and learn it yourself.
The only thing that any book/course/etc offers is a detailed, broken down to basics, how-to do something. My only point is, if Kish is giving what he is promising, then why is it “junk?”
Now, a different question may be “Is it worth what he’s charging?” And the answer to that will be as varied as the people who buy it.
Actually, sky, I’ve started about a dozen or so businesses now.
And yes, if the credit cards came, and I needed them, I applied.
I have applied with both good and not so good credit and have gotten cards.
If you apply at the bank that you setup your checking account, then you’re much more likely to get a card off the bat.
As to credit. If you get a card offer, then they have ALREADY pulled your credit and deemed your worthy for SOME type of credit, or you would not have gotten the offer. As long as your credit didn’t drop drastically from their “offer pull” to their “application pull” then you’ll be approved for some credit.
roger, I beg to differ w/ you on the credit card offers.
Those companies just buy name/address data from the credit bureaus…doesn’t mean that you’ll qualify. I moniter my credit w/ a monitoring service. my scores have not changed in a while. I got an amex offer in the mail and applied online using that offer number. I got denied…that’s the reason they all say “pre-approved” or “pre-selected”…otherwise they would all say you’re approved for x dollers. you wouldnt have to apply…
I work in the mtg. business and we buy the same data from equifax. for example, I’ll buy 1000 names of people of have 100k + mtg. balances on credit…doesnt’ mean they qualify for a mtg. though…they may have 400 scores.
buying a list from a credit bureau and pulling a promotional credit check is completely different. I know. I worked in a business that did promotional pulls. And that’s what most of the CC companies do. If you’ve had the great honor of having both good and bad credit, you’d get to see the different types of offers that come in depending on the score that they pulled.
As to being accepted/denied; that’s as varied as the individuals that you are forced to talk with to find out about the card. In one instance, I was denied a card over the phone, but accepted one week later through a mail in application. Same info, different validator at the other end of the phone.
As far as getting credit for businesses especially new ones can take some work. An ever greater uphill battle with poor personal credit. As Raj said there is no magic no secret info that anyone has out there that you can’t get yourself. This business is so completely saturated that there is very little new or revolutionary information. The people selling these courses and programs have done the homework and the research and then aggressively marketed it, again no magic. Many times you are paying for their experience which may be well worth it as in my opinion is a majority of what is important.
I recently started my first LLC with the intention to get credit to use for rehabs, quick cash, and down payments. I was told that this would be difficult if my business was less than a year or two old. I opened a business checking with Wells Fargo the very first day I started my LLC. They offered me 15k LOC and 7500 CC. I didn’t want the personal guarantee or this showing up on my credit so I passed on the offers.
My point is, last week I was networking and talking to a guy in Utah that said that he could help me get a line and CC for my LLC. He also said Wells Fargo is one of the only institutions that will pull credit for approval but do not report to your personal credit report.
I applied, signed a form and I was approved. 30k LOC and 12.5 CC easy as that and no reporting on my credit.
My credit is good so I am sure that helped, but build relationships, talk to everyone that you can, and do your homework.
artofcredit.com is a great site and tells you step by step how to establish business credit and it is all for free.
Unfortunately, sean, artofcredit is no longer an active site. In fact, it doesn’t even pull up anymore. However, there are more credit building/helping sites out there. Just google.
so i got a CC offer from Capital One. They didn’t ask for an FIEN. it asked for my soc. i want to build business credit, not my own. i dont want to impact my personal credit, good or bad.
so do i fill it out and send it in…or not?
also, bank of america sent me one, asked for a FIEN and then also asked for 2 years of business financials…uuummm, ya?