U26- Using Business Credit, Net 30, lines of credit, versus Real Estate 0:03 Hey, guys, thanks for joining. This is John Jay. 0:05 Today’s May sixth and we’re going to talk about business credit. 0:10 And pardon me for setting up a waiting room by mistake, I’m going to be interrupted a l…

U26- Using Business Credit, Net 30, lines of credit, versus Real Estate
Hey, guys, thanks for joining. This is John Jay.
Today’s May sixth and we’re going to talk about business credit.
And pardon me for setting up a waiting room by mistake, I’m going to be interrupted a little bit here in the beginning to make sure I admit everyone.
So in any case, I know we always end up talking about taxes. That’s great, we can do that.
I know it’s an interesting topic, but I do want to talk about business credit.
You don’t have to do anything now, business credit regarding the use of limited liability companies, OK.
The reason why I mentioned it is because I’ve had many, many conversations with people that are looking at wanting to use credit and they’re asking me questions like, should I get a credit card for my LLC. And the reason why they are usually is because they’re being solicited for a credit card.
And, um, uh.
And I’m gonna explain the scenario of why that’s happening and what’s going on in the background.
So before I do that, let me just mentioned, if you want to find more information about these topics, you can go to my YouTube channel called the privacy fight. It’s just one word.
Also, ace of coins dot com is a site where I have a blog, and there’s lots of articles over there from few years ago, until recently. Published a couple of articles every few months lately.
Most of my content right now is on video, and also, we have a video membership that has the technical aspects of some of the strategies I’m using.
And that can be reach through privacy, fight dot IO right now and here we go again.
I’m going to be admitting some people.
Sorry about that. I didn’t mean to create a waiting room. So, I’m going to be a little bit distracted.
All right.
So this is being recorded and I will publish it as soon as I can, probably tomorrow.
I usually don’t edit these at all. So let’s just please try to stay on focus on the business credit. I hope it appeals to you. I will say again, let’s just begin with the subject to begin with. The business credit is very useful and it’s down the road.
It’s when you start re-allocating your windfall your assets and you want to offset some risk. And a great way to offset risk in business is to borrow money from someone else. The reason why you do that? is because?
If you’re using your cash to pay for an asset, then you’re also, in fact, your own lender and lending, in many cases, requires an expertise. It requires, not only an expertise, but in a network and to other professionals in that industry.
There’s aspects of underwriting and actuarial and all kinds of just understanding re-insurance and things like that. Most of us may not get into that unless you’re in the banking industry.
Most of us are entrepreneurs or investors, and we’re gonna, we’re going to continue doing that.
And debt is a great way to do that when you’re buying assets, so this is why I want to cover it.
There’s a couple of ways to go: Real estate investing.
Is it great way to get loans to purchase real estate? And, for whatever other purposes, you do not need.
Dun and Bradstreet credit file to do that now may be helpful, but it’s not normally a practice that you would use, you would not go and set up a Dun and Bradstreet file.
For investing in real estate What you would do there is you would get a loan based upon the balance sheet of what you have, what you’re working with. Let’s say if you buy a hotel, there’s going to be a balance sheet with that and the collateral might be the hotel. So, loans on real estate are likely going to be collateralized and you want those loans to be based upon the the balance sheet. So, I’ll explain what I mean by that.
The Balance sheet is your credit, OK? It’s not your personal credit file, and if you’re, if you’re setting up a new company to start with and you’re going to buy the first investment. Let’s say, let’s just say, put cash over into a new investment.
You could take the old balance sheet from the existing purchase unless it’s a new, a new purchase.
And you can use that. Or, you can wait, you can pay cash and you can wait for the asset to age a little bit, and then you can get some credit that way.
And the risk is assessed based upon the income and cash flow, and the way the property is managed. So, hopefully, you know what you’re doing or hopefully you have the right people.
So, that’s the idea there Let me just talk about Dun and Bradstreet for a second, Dun and Bradstreet is the way to get business credit right now.
It’s been that way for a long time. And there are many strategies of doing that, OK. Many, many methods of doing that.
I will tell you that the things I explain to you, the things that I’ve been doing for 30 years are original. These are things that I’ve come up with, that I’ve solved problems with.
And so, when I explain about Dun and Bradstreet, uh, these are my ways of getting credit setup, it does not have to exactly be this way. I’ve just found that over the years, this is the most effective way.
So, if you’re asking me about getting credit, let’s say, a credit card, for an LLC, what you really need, you can do that, and you want to do it so that you’re not the personal guarantor on the account. So, if someone is soliciting you, let’s say, For example, you open an account at a bank with your LLC, and then the the person at the bank at that moment, or later on send you something in the mail, or in the future you get a mail solicitation for.
A credit card that credit card is more than likely going to be underwritten using your personal credit file information.
And the reason why they do that is because they’ll tell you it’s a business credit card because they can put the business name on the credit card. But what they’re really doing is, they’re lending it based upon your personal credit.
And this alleviates the bank’s liability or restrictions under title 15 of the Consumer Protection Laws Title 15 Section 692 of the United States Code.
Just say if you want to know some technical things So it’s OK to do that. I’m just saying just realize what you’re getting into.
If you go out and look for unsecured credit, like a line of credit, that’s a better way to do it because you can choose and you can apply a certain way.
So, you want to apply in a way that your personal tax information, let’s call it our credit information, is not going to be used in underwriting that credit account. So, let’s just call it a line of credit. A business line of credit starts out as a line of credit.
It usually starts out with what’s called a net 30 account. So a net 30 would be where I buy. I buy a product, excuse me again. I’m just catching up here on the waiting room.
A net 30 accounts where I’m going to buy a product for business purpose, and I’m going to pay for it later when the bill comes.
So I would arrange that now there are many companies that do that, and sometimes you’d be surprised. You may already be buying products from a company that provides net 30 terms. They’re called credit terms. All you have to do is ask and be careful. You know, when they give you me, then, I give you a new credit application or something if you want to set that up.
Make sure that it’s going to be underwritten with the business and its tax number and this sort of thing. It’s all separate from you personally or the signer, but still.
The way you get this set up is, first of all, the first thing you need.
With business credit, if you want a line of credit, you want a credit card for an LLC, you need to start with Net 30 accounts.
This is not a credit card, but you will get a credit card eventually, and or you’ll get a line of credit that you’re going to. You’re going to be able to use very well.
So, the way you do it is, you need a a business address, it can be an office location, it can be agricultural, it, can be industrial, It can be a virtual office space, it cannot be a postal box. Like a UPS store, a PO box, it cannot be residential, it cannot be multi-family.
It has to be an office space, and it doesn’t have to be yours. It just has to be an office space that you can receive mail and the name of your company once you have that.
Once you think you have that, or if you already know that you have an office space that you can use that with, You simply send a postcard with your company name to that address, to make sure that it gets delivered. Make sure the postal clerks delivers that mail, that that is just a way to re-assure yourself that you’re gonna get it. That’s where I have my clients do. So, once that happens, now, you know, you have a physical address, that’s a business location that you can receive mail, and the name of your company.
It’s probably your LLC.
Once you do that, you’ll go to a website.
It’s called list yourself dot net, list yourself dot net And I’m not going to, I’m not gonna go through right now.
I have a video on this already, but you go to list yourself dot net and you, There’s an option and the first page where you can choose to set up a credit file.
You can set up a credit file individually or commercially, so you want to choose commercial, and then you want to enter your information in that application, it’s just one page, And at the bottom, it’s going to ask how you want to be notified about the progress or the report.
So, it’ll be an SMS text or something like that.
So, you select that option and then what your phone will ring or whatever it wants you to complete it.
And then what will happen is, Dun and Bradstreet will get a message now, this I don’t believe the service of Dun and Bradstreet, I just believe that it’s it’s a company that does this lifting service.
It’s basically you’re, you’re giving up marketing data, OK, If you wanna look at that way, in this case, it’s going to help you now.
That will create a credit file. Dun and Bradstreet will contact you at some point, and they’ll offer you the agents will offer you credit services, which are pretty good, actually. You do not need to buy the credit services, they’re like a few hundred bucks.
Sometimes, you do not need to buy these credit services.
What I recommend that you tell them in the first phone call is, tell them, Hey, that sounds great, I gotta check with my partner. I’ll call you back, or Can you send me a letter?
That is a polite way to end. The conversation with Dun and Bradstreet, I’m just saying, if you know, if you feel uncomfortable when these calls come in, I’m just telling you how to handle it, you can do it However you want, you can buy their services, that’s fine, they’re good services. I’m just going to suggest that you don’t need them upfront.
So, all you need to do is some basically some key presses, some paperwork, business, some websites, and you’ll get a credit file.
So, Dun and Bradstreet will have an account for you.
They want you to use it their services, of course, because they’re going to sell your data, and that’s the nature of the game came, this is fine. This is what you do.
After a while, once you get, once you have that score, once you’re not gonna get a score, you’re gonna get a credit file. What you want to do, right about that time, is contact it.
You’re gonna get up to 3 or 4 net 30 suppliers. So so go for three, maybe you can add a fourth in there. If you’re able to, the first one you can probably select easily is going to be you line.
Uline is a catalog service. You can buy almost anything. I don’t care what kind of business you’re running.
You could be a surgeon or an airplane mechanic and probably ordered some products from uline, OK? Uline has something for everyone.
It’s like the Wal-Mart of all these places you line will give you net 30 terms now.
There may be some conditions that upfront, because you’re new and all that. And you’ll just have to get through that. Just remember, you don’t want to be the personal guarantor and that you don’t want to use your personal credit. You never have to use your personal credit.
I know a lot of people are told that if they have good credit, they can move that into or use it to get good business credit.
Maybe you can I mean, it just depends on the net 30 supplier What I’ve found is it’s useless to spend the time to do that when you if you just follow the simple steps I’m explaining here, it’s that. It’s that simple.
All right, so you go to Dun and Bradstreet once you know you have a physical address, you I’m sorry You go to list yourself dot net you you register your your business name and all that your phone number your business website Dun and Bradstreet will contact you I Always recommend just contacting them later.
You’ll probably get a letter as well go to your net 30 supplier, So you line is a good one to start with try to buy things, that makes sense that you’re going to use or maybe you can buy something that a friend is going to use.
I just don’t recommend buying something for the sake of getting in that 30 account. I mean, that’s just wasting money, I think, anyways.
So once you get the product, what I recommend is, as soon as you buy it, as soon as you take delivery of it, whether you walk into a real retail place or have it shipped, As soon as you do that, pay the bill, and you’re gonna do this probably for the first, I don’t know, I would say the first year, pay the bill immediately. Now you gotta think, well, that’s defeating the idea of getting net 30 terms, well net 30 terms aren’t that useful for most of us, especially when we’re just starting out, So you want to pay the bill right away.
That’s gonna make your score look good, and your score is gonna be from one to I believe it’s 100 is how they do it, and I think you’re gonna, you’re probably start out with a score that’s in the upper eighties, nineties, something like that. That’s that’s about where you want to keep it, you want to show?
As time goes on, your goal is to demonstrate that you can acquire debt in the business name and that you can manage it effectively without going to the end to default.
Once you start reaching a point where, let’s say you’ve got a line of credit, $20,000 to $60,000 in the first reasonably six months, OK?
You’re getting a line of credit from $20,000 to $60,000.
In the first 3 to six months, let’s say, six months.
It’s not a credit card, per se. It could be a credit card, but it’s going to be a line of credit that you can use.
Then you’re going to start getting a score.
So you’re going to start seeing a score from Dun and Bradstreet after about the second billing cycle, and that’s it, unless they’ve changed things around.
But it’s going to be about the second net 30 payment you make, is going to be reflecting a credit score of some kind.
And you just want to go from there. That’s how you build it.
And then you keep on doing that For You know, the 3 to 6 months and you should be able to then go into a lender.
That’s not Where are your accounts being held or where it is or another lender?
You’ll show some documentation. In fact. You can start shopping now and ask what a commercial Lender is going to ask you for, and you’ll get a like a view of what is going to be expected later on. But I’m telling you that the baby steps, if you will, and how to get this going so that you look like you know what you’re doing.
So when you finally go, look, for that $20,000 line of credit, You’re going to not look like a novice, OK?
It’s not that difficult Have a use for that $20,000 line of credit. I’m not saying you should go do that.
So you can replace your personal credit habit with a business credit, OK, Business credits for business.
So if it’s $20,000, my recommendation usually to start out and my specialty over the years has been bootstrapping businesses.
That means starting from nothing, which is not fun, OK? And it’s actually unsophisticated my opinion. I’m, I’m saying that about myself. I mean, really, really good way to get into a venture is with other people’s money and that takes some skill. And so, you can learn how to do that. I’ve done it before, I just, I preferred to my own thing. I like doing something from zero. That’s just how I do it.
But once you get a line of credit, my, my recommendation is to use it in a way that returns capital as quickly as possible. So I’m not going to take $20,000 and hire someone and send them, pay him six times with that money or whatever the, you know, whatever. The deals. I’m not gonna just stock up on inventory with my $20,000. I might stuck on my lipid inventory.
I might make a deal with one of my suppliers.
It’s a credit term that may not be on my Dun and Bradstreet file, but it’s a credit term that I can use, that I won’t get somewhere else, and that I don’t have to have cash for it, which is something we can talk about.
And Lance, I didn’t want to leave you out there. Sorry.
Sorry about that, Lance. I’m trying new. I somehow I created a waiting room today and I’m, I’m trying to watch to make sure I don’t exclude anyone.
So, um, that’s what you start out with. You would want to use the money to generate money as quickly as possible.
OK, $20,000, $60,000, in my opinion, it really doesn’t matter, OK? I can do the same with 20,000 that I could with 60 when I’m starting out a new venture for the most, for the most part.
After that, you can see what’s needed.
Now, I will tell you, one gentleman that I worked with, he, he’s a young guy in his late twenties, and I suggested he buy a $5000 business online. That generates $2000 a month.
And next thing I find out, as he bought a $200,000 business, that generated $13,000 a month, and he did it. Now, this guy had really good personal credit, and he did it honest, personal credit.
Now, you can’t do it that way. It’s not a problem.
Now what was interesting is after he did that Which by the way he said that effort. He it.
He took to do that that he said was about the same effort as you would get to get a mortgage on a house So that should tell you something it’s it’s probably just as much effort too.
Buy an asset is it is a liability so just think about that in any case.
four months after that, the Commercial Lender that lent him the money for the business with his personal credit was selling him and pushing him to get refinance. Now remember it was a $200,000 business, the seller financed 40%, the bank finance, 60% of that.
They wanted him to refinance a half a million dollars as a commercial loan in the name of the business.
OK, the bank wanted this.
So it’s in their interest that you get a commercial loan because they can do more with that account.
then they can a personal account where the payments are made or based upon someone someone’s ability to keep his job.
So I know I talk fast, I’m sorry about that, but I just I want to give you that in a nutshell. OK, I would just recommend don’t accept offers for personal credit, or especially credit cards for your business.
Because they’re not going to be unwritten in the name of the business. You can ask about that.
But chances are, even if you ask about that, that person is trained to think, that he’s telling you the truth, but actually he’s, he’s not.
Because that per person from the bank doesn’t have the ability to give you a commercial loan. So you have to go out and shop for that person. You have to go find it, and you might have to call a few people, 15 people. Sometimes you might have to find the right application.
one example is, if I go to Home Depot, it used to be where I could walk in and get a credit application, and they’ll give me the personal credit application, OK.
And then when I tell the clerk at the desk that I wanted the business application, they’ll give you the business application, but it asked for a personal guarantee on it.
So I believe like Home Depot right now, you’d actually have to go to Home Depot website to get the commercial, the real commercial loan application, something like a contractor would use, OK.
So you have to go a bit out of your way, but it’s worth it, and that’s how it works with credit.
And you’re going to get 3 net 30 accounts or four to get started, don’t get more. And you probably need more than two. Don’t get more than four.
And that’ll be good for managing cash flow with a business.
I mean maybe you bought maybe you bought a laundromat, OK with your new investment, may be re-allocated to some kind of retail business or something, it already has account set up. Maybe it already has net 30 accounts.
That would be a way to manage the receivables. And not receivables.
But, the way you spend make expenses, OK, paper expenses, right? That’s how I would use it.
I know a lot of people talk to me about using business credit, to go on vacation and things like that, and I know you made it and it’s like, you’re just like, That sounds clever, and it’s not really the use for it.
You want to use business credit to turnover new income as quickly as possible. That should be your objective, in my opinion. So, um, if I could, I’ll open it for questions and please, stay on topic.
I know that there’s a lot of exciting things to talk about, and I promise we’ll get to that, but I just wanted to make this recording about business credit, so that when people see the title, they’re gonna get that information.
All right, Now, I’ll call on you, and I see that you want to ask a question?
OK, good, I will just continue, then, I’m gonna continue with, I don’t see questions here, I’m gonna continue with Real estate.
So Real Estate is a bit different, Real Estate, you can get, let’s see here, I’m going real Estate, you’re not going to sit down and bradstreet’s score, you’re going to use the, if it’s, if it’s a commercial real estate or it’s a, it’s a real estate investment, OK?
If you’re going to buy a single family residential, you’re going to end up with being the personal guarantor on a mortgage and it’s going to be deemed an investment for an individual. You’re just not going to escape that when you start out, so just understand that part.
Maybe that’ll happen with your first few real estate purchases. Even if you’re gonna, I’m telling you, even if you have cash, you really should look at getting financing, so it’s OK for real estate, in my opinion, to use your personal credit to get started.
What’s going to happen is, all those investments should be on the Balance Sheet of your company, which is, let’s say, your LLC.
That LLC should be receiving the revenue from those investments. Even if you’re the personal guarantor on the on the debts that purchase them, the Mortgages. Sometimes you have to do that in real estate to start out.
I’m after awhile.
You want to look for underwriting that will base the loan on the assets ability to pay the or service, the debt. When I see the assets ability, I’m just talking about the Balance Sheet. What is it worth? This company, for example, may own to families, to, to single family homes.
It may own an apartment complex and maybe a piece of land or something. And that’s on the balance sheet, OK, and there’s some, There’s some cash flow and whatever. So now, maybe maybe the net worth of the company is let’s say one point two million dollars. Let’s just say you should be able to get underwriting or alone without a personal guarantee for that type of net worth with the right amount of cash flow. There has to be some decent cash flow, OK. So, that’s what I’m talking about.
So, that’s a little bit different than Dun and Bradstreet.
Does anybody want to ask questions?
Tell me that’s crazy.
By the way, if I’ll tell you, I don’t do that.
It’s funny. I know how to do it. I just, I rarely do that. If I get credit and I see to be asking a question if I get credit. It’s usually from a partner or somebody I’m working with or someone who has a resource.
So, let me call on Brad if I could, please.
Hi there. This is Brad’s Wife. Actually, Brad’s here will be as well. Alright. Hi, John. And I are CPA. This is, Yeah. This is timely, so our CPA, not related to real estate, though, but with what? you covered before our CPA, suggested that, we could get an Economic Injury Disaster Loan for, like, a, 30 year term and a? 3.75% interest rate for our, businesses. We each have our own? Businesses, and so we’re going to do this, and then, you know you’re talking about this today, and so, and we missed the first few minutes, so sorry if you covered, this, but do you recommend against that? And if, so, why, because I’m taking it that would be under our name, like we would be the personal guarantee. I’m kinda bashing using your name, OK, I’m kinda gathered. But if You have if like, if, I’ll do it, I’ll do it, too. I’ll put my name on a debt If there’s a good plan. And I see I’m gonna be able to turnover, you know some money and pay it down.
And if it’s a 30 year loan, my first thought is I’ll never take 30 years to pay off … paid off in three years or something else. Already. Fine. Yeah. So if you believe, and you have confidence that you can do it, I think you should go for it.
Just if the numbers make sense, OK, so can you did you already covered why you are? generally like against the personal guarantee, like when you can do it under the business? Yeah.
The reason why even brought this topic up is because, people ask me all the time about being solicited for a credit card because they got a new LLC, and that’s why I always tell them, OK, well, that’s going to, they’re offering you a personal credit card with a business name, so the bank has no liability, so that’s really my message there.
But if you listen, I did mention.
Later on today, I did I think I did that if it’s You’re able to turn some cash flow out of it, OK, And, and cover that debt service, that debt and do well with it, and Rifai later Go for it, But just just have that, you know, in mind.
I talked to so many people that their whole thinking is My my personal credit is bad.
So, I want to switch to Business Credit, and keep doing the same thing I was doing so, I know you’re not doing that, but sure, it’s OK, and, as you know, you’re not going to take 30 years to pay it off.
So, Yeah, for sure, thanks, the lender, by the way, is that the SBA, Yeah, ESPA, well, I do have a lot of bias towards the SBA, especially now, so, just check them anymore.
The SBA is a broker for the banking system.
And yes, you will be the personal guarantor on that one and they will probably make you colella collateralize, a lot of things that might leave you with pain.
But it may feel painful.
I’ll tell you, in Europe, if you go for a loan, the bank will find out what you own and their people don’t put things in company names over their trust and Europe, and they’ll take collateral and everything, even your furniture and that will be described in the loan contract. So I looked at the SBA’s deals lately.
Just be careful with the SBA, you might turn into something like a government secured loan, and also consider who you’re talking to, your CPA’s. You know, I don’t know. Did you asked his opinion, heard he bring it to you?
He brought it to us.
I’m sure he’s an honest guy, I would just ask what’s in it for them, and why is he mentioning it always asked series. I mean, people had asked me that why. Are you telling me this. You know, if I have an interest, I’ll tell you. So, yeah, it’s good to know When you have a sales pitch, and it’s OK to have a sales pitch. You know it’s informative.
Know who you’re talking to, your CPA’s, not, probably not investor, he’s probably a CPA only, which is a professional, so.
OK, thank you.
All right, and then there was Double A.
A. Tiny. want to say that.
Oh, yes, it’s a, all right, John. Alright.
Pretty good. What’s going on with?
Do have a question? Do you try to get there? Can you hear me now? Yes, I can.
And I actually am asking about is it possible for a foreigner to do the LLC thing?
Yeah, the foreigner can do that.
So someone from another country can use an LLC in the states, That’s what you’re talking about.
You can open a bank account, it states. The one limitation is you’re going to need an EIN for the LLC.
You can pay someone $50 to do that for you. There’s a professional service that does that. I don’t do that.
Um, but then you can get, you can get an account open. Sometimes you don’t need an account here, a bank account. Some people just wanted to deal with Caleb and Brown and then go back to their country.
You can take an LLC from here and domesticated in your country.
I would just I don’t always like to recommend that because maybe there’s something local that you can use. Maybe there’s a really good reason to do that.
Like if you’re in Canada and you’re OK with using Caleb and Brown and that’s part of your plan. That’s great. And the UK, same idea.
I don’t like to recommend something just because I sell it.
But from what you’re saying, the answer is yes you’re asking me that.
OK, so uhh, to make it clear that I’m citing in States for about four years now. I’m waiting for my, my green card. And yeah, it’s still on the I don’t know when It’s going to be proceed. Yeah, but that was stuck here.
And I got my social, and I get my license.
So, can I go through with the LLC process, and I get my crypto account in Coin Base and in By …, And I’m planning to move it out at the end of the year, but, so, yeah, your LLC things that, yeah, that would be very easy to do, yes.
So, yeah, it’s possible to go through a form for my status. So no limitation, I can do limitations that are hosted it. Yeah, you can even open an account here as a foreigner just call the bank ahead of time.
You can, if you’re not sure, just contact one of the banks here in the States by e-mail, or even by phone, and ask them what is needed for a person who’s from another country.
Now in your case, you probably have a green card, right, So that would be easy to do.
Not yet, not yet. In the middle, so it might not know, green card. So like the process, that’s why my position is stateless.
It kinda makes me confused if they reject my green card and then I have to go back to my country, but for now that they have an insert me. So I just thing here.
OK, so what ID, what national ID do you have?
My idea, I got my license here No, but you have a driver’s license.
Yes, OK. That, that, and what else do you have? What other form of ID to asking?
Because the bank will ask you for two forms of ID, I got my license and the real ID.
And just social, OK, You probably need one more form of ID, like a government idea of some kind.
But just ask the bank, but based on human life.
Pick a bank and ask if you can open an account with the current IDs that you have.
My bank account already. So, yes. And do the same thing. You can certainly do an LLC.
I see my bank account and my checking and might say, well, that’s easy. Then, of course, all you’re gonna do is open a different kind of account.
Right. I see, OK. All right.
So, I just want to make sure before proceeding to the next step, OK, very good, Thank you, John. All right, OK, and someone’s asking me here on the chat about Brecht’s business card. I don’t know what that is, I mean, I can look it up.
This just looks to me when you have all these different services, debit credit.
Yeah, yeah, it says it doesn’t use your SSN, OK. That’s fine.
It doesn’t really matter.
It’s funny, the banks have all that information already, even before you walk in.
So, I would just look at the Terms of Service, right?
Just look at your credit terms, and ask the person who’s offering you this at the bank, ask how the account is going to be underwritten.
That will give you the answer, and you can decide if you want to do that, because it’s OK to be the personal guarantor. I’m just saying, no.
When you are, don’t be tricked into doing it when you don’t. When you don’t know that, you’re doing that.
Because when someone says to you, I’ll give you a business credit card and you stop there and say, Great, let’s do it. And you assume that it’s truly a business credit card, and you make the mistake of letting them underwrite your personal credit and now, all of a sudden, you’re on the hook personally.
So just be aware of that.
But yeah, I had, I’ve had LinkedIn, like the Commerce conversations with people.
Um, when gentlemen wanted to use Dun and Bradstreet for, for real estate, that’s another reason why I want to talk about this, because I don’t, I don’t see that they mixed together.
Now, if I’m a property manager, and I have suppliers, know, maybe I, Maybe I have really good deals with no plumbing supply and electrical supply and masonry work and all this stuff and flooring. And all this, because I’m a property manager. Well, then, definitely, I think a Net 30 type profile should be set up.
That’s a great use for it, and that is kind of a real estate investment, it’s more of a business investment, but a property manager would be great with them.
Uh, business has done a Dun and Bradstreet credit.
Yeah, Briggs Card. I mean, you guys can look it up.
I don’t know anything about Eurex card.
Alright. We’ll do that. So anybody have any more questions? I know someone’s just joining us.
Yes, hi, John. How are you as Carlos … Good, thanks.
Good, good. Quick question. I’m not sure if we covered it as well, not just try now.
We watch the video afterwards once you post the recording, utilizing, you know, like whether it be a private lending company, our bank, whatever, if one is can use the L C in order to, um, acquire a mortgage for primary residency.
Is that something that’s possible, or one as you go through through many loops?
Then do you want to borrow money to to buy a house?
That, you’re gonna look for my residency. Yeah, yeah, OK.
Um, you can do that.
It’s just that, I mean, you’re just going to borrow the money in your name. That’s what’s going to happen OK. If you want to do it as if it’s not an investment. So, so, no bank is gonna look at that as an investment.
They’re gonna look at it and say OK, you want the LLC, they are going to see you’re associated with the company and they’re going to say OK, you want us to underwrite this in the LLC. OK, we can do that if you have a decent balance sheet.
So, you’d better come to the bank with a good balance sheet.
And that’s not a usual transaction.
I mean, using your own company to borrow money in the company name, to buy your own house, in which you’re gonna live. I don’t know why you’d want to do that. Sure. If you have a good net balance sheet, don’t do it.
You gotta have a balance sheet, though, you gotta have something on the books that looks like you have you know what you’re doing with real estate.
Yeah, OK.
OK, and you’re asking someone’s asking about the the Proposed Biden Tax Plan to have all Bank transactions directly reported to the IRS.
I don’t know what that means.
I mean, I really don’t, The purpose of the blockchain is to do that.
I think this is just talking about just talking and talking so that people will just always have it on their mind and be afraid of the IRS. I don’t know that any laws have changed, so what, so, what if things are being reported? I act as if, every time, every time I do something for a client, I act as if the IRS will see everything.
Kinda, don’t care what they do. I’m not even following. I don’t even follow what they do with the tax code. I wait for people to tell me, because it almost doesn’t matter in all my years of doing this.
All the changes that I’ve seen have never adversely impacted anything I’ve done.
Because I don’t use their system. I don’t I don’t try to do things like a 1031 exchange. I don’t care if they change 1031 laws.
I’m still going to do works, you know?
OK, when I have a quick question, OK, do you know the website open corporates dot com.
No, I haven’t seen that one.
So, apparently, if you put in your name, you’re able to see of a company that’s registered on your name, OK. It’s good and it works all over the world.
The reason I’m asking is aye.
Regarding a personal matter, I just kind of exploring this data is going to happen. Purchase, like a foreign company? I have an open, a bank account and I did my personally.
Unfortunately, I didn’t do it under an LLC, so since it was last year I would have to disclose that census undermining.
Personally personally yes, yes, You bought a company in a foreign country.
Yeah, not form X one, I’m sorry.
Point corporation, OK, you, you bought a foreign corporation?
Yeah, OK.
That just has ugly disclosure requirements.
I talked about this, and I think it’s the last call we had.
We were talking about the 1971 and all that, so that’s, that’s really what you’re concerned with there. You should look at that.
Should do a, she just wasn’t an LLC.
Personally, I’m sure that’s a different scenario two, but no LLC doesn’t solve all your problems.
When you sign for a foreign company as a US citizen, you have all these disclosure obligations, and you can never comply with them, in my opinion.
They’re very complicated.
And the statute of limitations can always be waived just because the IRS decides to do that.
So the fact that you’re signing and identifying yourself as a US citizen, it’s the problem. It doesn’t matter about companies or anything like that.
Let me Let me share something with you all to just just 1, 1 professional referral here. I do not make any money on this. I’ve never done that. I don’t have a deal with these people. This is an international network of professionals, and they do include attorneys. I’m not advocating attorneys, but sometimes they’re useful.
They are, they’ll do all kinds of things.
Like, for example, like, from what you’re describing right here, I would recommend being, having a, a nominee Directors to operate that.
If it’s that important.
I also recommend that, if you’re going to do that, make sure that you have an operation in that other country.
There’s something going on there, and then you’re not moving money from the states over there, for some crazy reason, just to put it over there. So have that going on. Alright, this company can help you with the nominee directors and do it in a correct way. So you’re not re-inventing the wheel. And so, you’re also not paying too much money for some quack in Guatemala that says for $20,000. He can do this thing for you, OK.
Then the website for this organization is called O C R A okra.
I forget what it stands for: OC RA dot com oh, CRA dot com is this organization that can set those things up. That’s a very simple thing for it. To do. another thing you can do if you guys want to check this out.
If you have in mind that you want to possibly buy a yacht for yourself, OK these guys can actually write the budget for the yacht and staff it and decide help you decide how to insure it and where to flag it.
They can do the whole thing soup to nuts.
They can do that with A, Uh, know, an airplane, if you want to buy an airplane, which is probably not a good idea, when you can just leased private space.
So, CRA dot com is a tool that you guys may want to check out That can handle some of this stuff for you. There’s no reason that if you have a need, first of all, you should have a need to go offshore. No, there should be some legitimate business thing going on.
And you should, you should do it with a little sophistication either using an international business company, you go through a service like … dot com or and I would just throw this at you.
An ABC that I recommend would be something in Hong Kong and I’ll let you do the research on that you can see for yourself if it’s something you want to do. But again, I just recommend, if you’re going to do some off shore there, you have to have a real interest over there. Don’t just set up a company, I’m sure it because it sounds cool.
And then send your newfound wealth over there, I mean, unless you’re gonna start a factor or something, right.
I thought I’d just recommend.
So anything else on the lending that I cover that? I know there’s a million questions afterwards.
Other thing, so yeah, go ahead, Karen. Yeah. Just quick question about money, where can I find I just signed up on the site, or privacy for this information we went over? Is there more information available on there? I don’t know that it’s so much detail. There may be. there may be an older video on it, but I’m going to put more content in addition to this one we’re doing right now.
So there will be more detail. Yeah.
four mm.
Yeah, You guys can let me know, too. I mean, if you want to see some more content, I have a list of content to put up there, this whole year, next year, but I’m doing as fast as I can. So, let me know if there’s something that you really, you know, it’s interesting, and I can do it if I, if I know about it.
I have certain limitations. I am going to start bringing in some. Let me just, let me just end this call, and I’ll tell you guys real quick. Are we done with the credit stuff?
That’s good for. Now.
Let’s say sometimes we don’t need credit from third parties, we don’t need a credit filed with Dun and Bradstreet, and I’ll just tell you personally, From from my experience, since I’ve been in junior high school, I’ve been running businesses and I use other people’s resources or I like to partner with people.
I’d like to do joint ventures.
I like to use other people’s resources, And the way I do, it is the biggest, And the most important thing there is just keeping your word, You say you’re going to do something, you have to do it no matter what. Because if you don’t, that is your credit. You’ll never gonna get back in the game or easily if you, if you don’t keep your word. So that’s number one, but I usually end up splitting the net.
What that means is, if I have an idea, and someone else has a resource, and it takes me a lot of money to get to the resource that I need, I’ll just partner with that person and say, hey, like, I have this idea. If you want to help me with it, we’ll just split whatever’s left over.
That’s usually a really attractive, because I don’t want to minimize that person is involved because without him, I couldn’t do it right. So, I’m willing to do the 50% now, sometimes I’ll even pay more, it just depends on what kind of arrangement. So, those are the, those are the kind of deals I’ve been doing over the years. I rarely will go in there with some sort of credit third party credit or something like that, or lots of cash.
Or, if I have lots of cash, I’ll get someone to buy me out later, or something like that.
So, anyways, I just want to mention that.
But I’m going to, I’m going to shut this up now. I’m going to stop the recording now.


1. The speaker, John Jay, discusses the importance of understanding and using business credit, especially when connected to Limited Liability Companies (LLCs).
2. He mentions that many people often question him about getting a credit card for their LLCs, which is generally driven by solicitation from credit card companies.
3. John Jay explains that although these credit cards are labeled as business credit cards, they are underwritten using personal credit file information, thus bypassing the bank’s liability under certain consumer protection laws.
4. To acquire a credit card or line of credit for an LLC, John suggests starting with Net 30 accounts, which are a type of trade credit where the full amount is due within 30 days of the invoice date.
5. A business address is essential for setting up Net 30 accounts. This can be a physical office location, agricultural, industrial, or a virtual office space, but it cannot be a post office box.
6. He recommends using the Dun and Bradstreet service to create a credit file, and using the catalog service Uline to build the company’s credit history with prompt payments.
7. He advises building a good credit score (up to 100) for the business to establish a reliable financial reputation and appear experienced when looking for significant lines of credit.
8. John Jay suggests that using business credit can potentially replace personal credit, providing better financial management for business transactions. His initial recommendation for a line of credit is around $20,000.
9. He shares an example of a successful real estate business that started with a net worth of around $1.2 million and secured a loan without a personal guarantee due to decent cash flow.
10. Towards the end, he advises participants to be careful with loans backed by the Small Business Administration (SBA) and to question why their CPAs are offering certain financial advice.

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