Many investors are unable to pursue foreclosure or preforeclosure deals for lack of money. There are many ways to quickly help a homeowner in trouble without spending your own money. You can use your credit cards, your personal line of credit or equity line of credit. By doing so you are increasing your debt to income ratio. Consequently, your credit score may suffer. You can bring a partner in the deal. Your partner will put up all the money and you can split the profit. In this case you’re giving up a big part of your profit. Sometimes your partner may want half of the profit. There is a better way to help homeowners in foreclosure and still keep all the profit for yourself. The Business Unsecured Line of Credit is the secret weapon many investors are using to play the pre-foreclosure and the foreclosure game and make a truckload of money.
Some investors have built up to 7-figure unsecured business line of credit.
In the following lines I’m going to give you the steps you can apply and build your own 6 to 7-figure unsecured business line of credit.
First, what is an unsecured business line of credit?
It’s a business line of credit that is NOT attached to your investment and is not reported on your credit unless you default.
The lending institution basically gives you a checkbook and trust that you’ll use it wisely.
Here are 7 steps you want to follow to succeed in building your Business Line of credit.
Step 1. You need to have a business
Sole proprietorship won’t do. You need a Corporation or an LLC, two years preferred. You must have your EIN number. Here is a tip. You can purchase a shell of a two years old business close to nothing. You’re instantly ready to apply for your business line of credit.
Step 2. You need to register the business with Dun and Bradstreet.
Dun and Bradstreet is the titan of business credit profile. They control 70 percent of the market share for business credit reporting. and select their premium package. You can call the number on the website.
Step 3. Have a Paydex number.
Just like your personal credit score, your business has a credit score called Paydex score. It is between 0 to 100 (0 been the lowest).
Step 4. No bankruptcy allowed
Although you’re applying for an unsecured business line of credit, the lending institutions look at your credit. They expect you to have a score of 680+. Here is the good news in case you have a bad credit. Add a credit partner in your business and apply through him.
Step 5. Apply for your credit line
You’re now ready to fill out your applications. Many lending institutions will give you up to $50,000 line. Over that number you need to provide two years tax return and your mother-in-law as a bonus package. There are exceptions. I got approved by Wells Fargo for $100,000 just over the telephone. My advice is to apply for 5 line of credit within 30 days. Here are some names of lending institutions you can apply with: Wells Fargo, Bank of America, Suntrust, Wachovia, WAMU, Bank one.