{"id":16641,"date":"2021-07-28T07:51:33","date_gmt":"2021-07-28T11:51:33","guid":{"rendered":"http:\/\/privacyfight.io\/?p=16641"},"modified":"2023-06-25T06:37:36","modified_gmt":"2023-06-25T10:37:36","slug":"u26-using-business-credit-net-30-lines-of-credit-versus-real-estate","status":"publish","type":"post","link":"https:\/\/privacyfight.io\/u26-using-business-credit-net-30-lines-of-credit-versus-real-estate\/","title":{"rendered":"U26- Using Business Credit, Net 30, lines of credit, versus Real Estate"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"16641\" class=\"elementor elementor-16641\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-ed0548c elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"ed0548c\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-c66a29b\" data-id=\"c66a29b\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-a7e4ab1 elementor-widget elementor-widget-text-editor\" data-id=\"a7e4ab1\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"vidseo_wrapper\" style=\"width: 100%;\">\r\n\r\n    \r\n    \r\n        <div class=\"vidseo_vimeo\">\r\n\r\n            <iframe title=\"vimeo-player\" src=\"https:\/\/player.vimeo.com\/video\/720201208\/?\" width=\"100%\" frameborder=\"0\" allowfullscreen><\/iframe>\r\n\r\n        <\/div>\r\n\r\n    \r\n    \r\n    <div class=\"vidseo_collapse\" style=\"\">\r\n        <div class=\"vidseo_btn\" style=\"\">\r\n            U26- Using Business Credit, Net 30, lines of credit, versus Real Estate\r\n0:03\r\nHey, guys, thanks for joining. This is John Jay.\r\n0:05\r\nToday\u2019s May sixth and we\u2019re going to talk about business credit.\r\n0:10\r\nAnd pardon me for setting up a waiting room by mistake, I\u2019m going to be interrupted a l&#8230;        <\/div>\r\n        <div class=\"vidseo_collapse_content\" style=\"\">\r\n            <p>U26- Using Business Credit, Net 30, lines of credit, versus Real Estate<br \/>\n0:03<br \/>\nHey, guys, thanks for joining. This is John Jay.<br \/>\n0:05<br \/>\nToday\u2019s May sixth and we\u2019re going to talk about business credit.<br \/>\n0:10<br \/>\nAnd pardon me for setting up a waiting room by mistake, I\u2019m going to be interrupted a little bit here in the beginning to make sure I admit everyone.<br \/>\n0:21<br \/>\nSo in any case, I know we always end up talking about taxes. That\u2019s great, we can do that.<br \/>\n0:26<br \/>\nI know it\u2019s an interesting topic, but I do want to talk about business credit.<br \/>\n0:30<br \/>\nYou don\u2019t have to do anything now, business credit regarding the use of limited liability companies, OK.<br \/>\n0:38<br \/>\nThe reason why I mentioned it is because I\u2019ve had many, many conversations with people that are looking at wanting to use credit and they\u2019re asking me questions like, should I get a credit card for my LLC. And the reason why they are usually is because they\u2019re being solicited for a credit card.<br \/>\n0:52<br \/>\nAnd, um, uh.<br \/>\n0:55<br \/>\nAnd I\u2019m gonna explain the scenario of why that\u2019s happening and what\u2019s going on in the background.<br \/>\n1:00<br \/>\nSo 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\u2019s just one word.<br \/>\n1:09<br \/>\nAlso, ace of coins dot com is a site where I have a blog, and there\u2019s lots of articles over there from few years ago, until recently. Published a couple of articles every few months lately.<br \/>\n1:23<br \/>\nMost 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\u2019m using.<br \/>\n1:31<br \/>\nAnd that can be reach through privacy, fight dot IO right now and here we go again.<br \/>\n1:36<br \/>\nI\u2019m going to be admitting some people.<br \/>\n1:40<br \/>\nSorry about that. I didn\u2019t mean to create a waiting room. So, I\u2019m going to be a little bit distracted.<br \/>\n1:46<br \/>\nAll right.<br \/>\n1:47<br \/>\nYeah.<br \/>\n1:50<br \/>\nAlright.<br \/>\n1:53<br \/>\nSo this is being recorded and I will publish it as soon as I can, probably tomorrow.<br \/>\n1:58<br \/>\nI usually don\u2019t edit these at all. So let\u2019s just please try to stay on focus on the business credit. I hope it appeals to you. I will say again, let\u2019s just begin with the subject to begin with. The business credit is very useful and it\u2019s down the road.<br \/>\n2:11<br \/>\nIt\u2019s 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?<br \/>\n2:24<br \/>\nIf you\u2019re using your cash to pay for an asset, then you\u2019re 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.<br \/>\n2:39<br \/>\nThere\u2019s 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\u2019re in the banking industry.<br \/>\n2:49<br \/>\nMost of us are entrepreneurs or investors, and we\u2019re gonna, we\u2019re going to continue doing that.<br \/>\n2:54<br \/>\nAnd debt is a great way to do that when you\u2019re buying assets, so this is why I want to cover it.<br \/>\n2:59<br \/>\nThere\u2019s a couple of ways to go: Real estate investing.<br \/>\n3:04<br \/>\nIs it great way to get loans to purchase real estate? And, for whatever other purposes, you do not need.<br \/>\n3:12<br \/>\nDun and Bradstreet credit file to do that now may be helpful, but it\u2019s not normally a practice that you would use, you would not go and set up a Dun and Bradstreet file.<br \/>\n3:20<br \/>\nFor 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\u2019re working with. Let\u2019s say if you buy a hotel, there\u2019s 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\u2019ll explain what I mean by that.<br \/>\n3:41<br \/>\nThe Balance sheet is your credit, OK? It\u2019s not your personal credit file, and if you\u2019re, if you\u2019re setting up a new company to start with and you\u2019re going to buy the first investment. Let\u2019s say, let\u2019s just say, put cash over into a new investment.<br \/>\n3:54<br \/>\nYou could take the old balance sheet from the existing purchase unless it\u2019s a new, a new purchase.<br \/>\n3:59<br \/>\nAnd 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.<br \/>\n4:07<br \/>\nAnd the risk is assessed based upon the income and cash flow, and the way the property is managed. So, hopefully, you know what you\u2019re doing or hopefully you have the right people.<br \/>\n4:16<br \/>\nSo, that\u2019s 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.<br \/>\n4:24<br \/>\nIt\u2019s been that way for a long time. And there are many strategies of doing that, OK. Many, many methods of doing that.<br \/>\n4:29<br \/>\nI will tell you that the things I explain to you, the things that I\u2019ve been doing for 30 years are original. These are things that I\u2019ve come up with, that I\u2019ve solved problems with.<br \/>\n4:38<br \/>\nAnd 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\u2019ve just found that over the years, this is the most effective way.<br \/>\n4:50<br \/>\nSo, if you\u2019re asking me about getting credit, let\u2019s say, a credit card, for an LLC, what you really need, you can do that, and you want to do it so that you\u2019re not the personal guarantor on the account. So, if someone is soliciting you, let\u2019s 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.<br \/>\n5:15<br \/>\nA credit card that credit card is more than likely going to be underwritten using your personal credit file information.<br \/>\n5:22<br \/>\nAnd the reason why they do that is because they\u2019ll tell you it\u2019s a business credit card because they can put the business name on the credit card. But what they\u2019re really doing is, they\u2019re lending it based upon your personal credit.<br \/>\n5:33<br \/>\nAnd this alleviates the bank\u2019s liability or restrictions under title 15 of the Consumer Protection Laws Title 15 Section 692 of the United States Code.<br \/>\n5:44<br \/>\nJust say if you want to know some technical things So it\u2019s OK to do that. I\u2019m just saying just realize what you\u2019re getting into.<br \/>\n5:50<br \/>\nIf you go out and look for unsecured credit, like a line of credit, that\u2019s a better way to do it because you can choose and you can apply a certain way.<br \/>\n5:58<br \/>\nSo, you want to apply in a way that your personal tax information, let\u2019s call it our credit information, is not going to be used in underwriting that credit account. So, let\u2019s just call it a line of credit. A business line of credit starts out as a line of credit.<br \/>\n6:11<br \/>\nIt usually starts out with what\u2019s called a net 30 account. So a net 30 would be where I buy. I buy a product, excuse me again. I\u2019m just catching up here on the waiting room.<br \/>\n6:23<br \/>\nA net 30 accounts where I\u2019m going to buy a product for business purpose, and I\u2019m going to pay for it later when the bill comes.<br \/>\n6:30<br \/>\nSo I would arrange that now there are many companies that do that, and sometimes you\u2019d be surprised. You may already be buying products from a company that provides net 30 terms. They\u2019re 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.<br \/>\n6:47<br \/>\nMake sure that it\u2019s going to be underwritten with the business and its tax number and this sort of thing. It\u2019s all separate from you personally or the signer, but still.<br \/>\n6:55<br \/>\nThe way you get this set up is, first of all, the first thing you need.<br \/>\n6:58<br \/>\nWith 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.<br \/>\n7:05<br \/>\nThis is not a credit card, but you will get a credit card eventually, and or you\u2019ll get a line of credit that you\u2019re going to. You\u2019re going to be able to use very well.<br \/>\n7:12<br \/>\nSo, 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.<br \/>\n7:29<br \/>\nIt has to be an office space, and it doesn\u2019t 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.<br \/>\n7:37<br \/>\nOnce 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\u2019re gonna get it. That\u2019s where I have my clients do. So, once that happens, now, you know, you have a physical address, that\u2019s a business location that you can receive mail, and the name of your company.<br \/>\n8:03<br \/>\nIt\u2019s probably your LLC.<br \/>\n8:05<br \/>\nOnce you do that, you\u2019ll go to a website.<br \/>\n8:07<br \/>\nIt\u2019s called list yourself dot net, list yourself dot net And I\u2019m not going to, I\u2019m not gonna go through right now.<br \/>\n8:16<br \/>\nI have a video on this already, but you go to list yourself dot net and you, There\u2019s an option and the first page where you can choose to set up a credit file.<br \/>\n8:26<br \/>\nYou 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\u2019s just one page, And at the bottom, it\u2019s going to ask how you want to be notified about the progress or the report.<br \/>\n8:40<br \/>\nSo, it\u2019ll be an SMS text or something like that.<br \/>\n8:45<br \/>\nSo, you select that option and then what your phone will ring or whatever it wants you to complete it.<br \/>\n8:49<br \/>\nAnd then what will happen is, Dun and Bradstreet will get a message now, this I don\u2019t believe the service of Dun and Bradstreet, I just believe that it\u2019s it\u2019s a company that does this lifting service.<br \/>\n9:01<br \/>\nIt\u2019s basically you\u2019re, you\u2019re giving up marketing data, OK, If you wanna look at that way, in this case, it\u2019s going to help you now.<br \/>\n9:08<br \/>\nThat will create a credit file. Dun and Bradstreet will contact you at some point, and they\u2019ll offer you the agents will offer you credit services, which are pretty good, actually. You do not need to buy the credit services, they\u2019re like a few hundred bucks.<br \/>\n9:20<br \/>\nSometimes, you do not need to buy these credit services.<br \/>\n9:23<br \/>\nWhat 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\u2019ll call you back, or Can you send me a letter?<br \/>\n9:33<br \/>\nThat is a polite way to end. The conversation with Dun and Bradstreet, I\u2019m just saying, if you know, if you feel uncomfortable when these calls come in, I\u2019m just telling you how to handle it, you can do it However you want, you can buy their services, that\u2019s fine, they\u2019re good services. I\u2019m just going to suggest that you don\u2019t need them upfront.<br \/>\n9:47<br \/>\nSo, all you need to do is some basically some key presses, some paperwork, business, some websites, and you\u2019ll get a credit file.<br \/>\n9:54<br \/>\nSo, Dun and Bradstreet will have an account for you.<br \/>\n9:57<br \/>\nThey want you to use it their services, of course, because they\u2019re going to sell your data, and that\u2019s the nature of the game came, this is fine. This is what you do.<br \/>\n10:06<br \/>\nAfter a while, once you get, once you have that score, once you\u2019re not gonna get a score, you\u2019re gonna get a credit file. What you want to do, right about that time, is contact it.<br \/>\n10:16<br \/>\nYou\u2019re 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\u2019re able to, the first one you can probably select easily is going to be you line.<br \/>\n10:26<br \/>\nUline is a catalog service. You can buy almost anything. I don\u2019t care what kind of business you\u2019re running.<br \/>\n10:31<br \/>\nYou could be a surgeon or an airplane mechanic and probably ordered some products from uline, OK? Uline has something for everyone.<br \/>\n10:39<br \/>\nIt\u2019s like the Wal-Mart of all these places you line will give you net 30 terms now.<br \/>\n10:45<br \/>\nThere may be some conditions that upfront, because you\u2019re new and all that. And you\u2019ll just have to get through that. Just remember, you don\u2019t want to be the personal guarantor and that you don\u2019t want to use your personal credit. You never have to use your personal credit.<br \/>\n10:56<br \/>\nI 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.<br \/>\n11:02<br \/>\nMaybe you can I mean, it just depends on the net 30 supplier What I\u2019ve found is it\u2019s useless to spend the time to do that when you if you just follow the simple steps I\u2019m explaining here, it\u2019s that. It\u2019s that simple.<br \/>\n11:15<br \/>\nAll right, so you go to Dun and Bradstreet once you know you have a physical address, you I\u2019m 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.<br \/>\n11:31<br \/>\nYou\u2019ll 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\u2019re going to use or maybe you can buy something that a friend is going to use.<br \/>\n11:42<br \/>\nI just don\u2019t recommend buying something for the sake of getting in that 30 account. I mean, that\u2019s just wasting money, I think, anyways.<br \/>\n11:47<br \/>\nSo 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\u2019re gonna do this probably for the first, I don\u2019t know, I would say the first year, pay the bill immediately. Now you gotta think, well, that\u2019s defeating the idea of getting net 30 terms, well net 30 terms aren\u2019t that useful for most of us, especially when we\u2019re just starting out, So you want to pay the bill right away.<br \/>\n12:13<br \/>\nThat\u2019s gonna make your score look good, and your score is gonna be from one to I believe it\u2019s 100 is how they do it, and I think you\u2019re gonna, you\u2019re probably start out with a score that\u2019s in the upper eighties, nineties, something like that. That\u2019s that\u2019s about where you want to keep it, you want to show?<br \/>\n12:28<br \/>\nAs 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.<br \/>\n12:38<br \/>\nOnce you start reaching a point where, let\u2019s say you\u2019ve got a line of credit, $20,000 to $60,000 in the first reasonably six months, OK?<br \/>\n12:47<br \/>\nYou\u2019re getting a line of credit from $20,000 to $60,000.<br \/>\n12:51<br \/>\nIn the first 3 to six months, let\u2019s say, six months.<br \/>\n12:55<br \/>\nIt\u2019s not a credit card, per se. It could be a credit card, but it\u2019s going to be a line of credit that you can use.<br \/>\n13:00<br \/>\nThen you\u2019re going to start getting a score.<br \/>\n13:01<br \/>\nSo you\u2019re going to start seeing a score from Dun and Bradstreet after about the second billing cycle, and that\u2019s it, unless they\u2019ve changed things around.<br \/>\n13:09<br \/>\nBut it\u2019s going to be about the second net 30 payment you make, is going to be reflecting a credit score of some kind.<br \/>\n13:15<br \/>\nAnd you just want to go from there. That\u2019s how you build it.<br \/>\n13:18<br \/>\nAnd 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.<br \/>\n13:26<br \/>\nThat\u2019s not Where are your accounts being held or where it is or another lender?<br \/>\n13:31<br \/>\nYou\u2019ll show some documentation. In fact. You can start shopping now and ask what a commercial Lender is going to ask you for, and you\u2019ll get a like a view of what is going to be expected later on. But I\u2019m telling you that the baby steps, if you will, and how to get this going so that you look like you know what you\u2019re doing.<br \/>\n13:45<br \/>\nSo when you finally go, look, for that $20,000 line of credit, You\u2019re going to not look like a novice, OK?<br \/>\n13:53<br \/>\nIt\u2019s not that difficult Have a use for that $20,000 line of credit. I\u2019m not saying you should go do that.<br \/>\n13:59<br \/>\nSo you can replace your personal credit habit with a business credit, OK, Business credits for business.<br \/>\n14:06<br \/>\nSo if it\u2019s $20,000, my recommendation usually to start out and my specialty over the years has been bootstrapping businesses.<br \/>\n14:15<br \/>\nThat means starting from nothing, which is not fun, OK? And it\u2019s actually unsophisticated my opinion. I\u2019m, I\u2019m saying that about myself. I mean, really, really good way to get into a venture is with other people\u2019s money and that takes some skill. And so, you can learn how to do that. I\u2019ve done it before, I just, I preferred to my own thing. I like doing something from zero. That\u2019s just how I do it.<br \/>\n14:34<br \/>\nBut 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\u2019m 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\u2019m not gonna just stock up on inventory with my $20,000. I might stuck on my lipid inventory.<br \/>\n14:56<br \/>\nI might make a deal with one of my suppliers.<br \/>\n15:02<br \/>\nIt\u2019s a credit term that may not be on my Dun and Bradstreet file, but it\u2019s a credit term that I can use, that I won\u2019t get somewhere else, and that I don\u2019t have to have cash for it, which is something we can talk about.<br \/>\n15:13<br \/>\nAnd Lance, I didn\u2019t want to leave you out there. Sorry.<br \/>\n15:16<br \/>\nSorry about that, Lance. I\u2019m trying new. I somehow I created a waiting room today and I\u2019m, I\u2019m trying to watch to make sure I don\u2019t exclude anyone.<br \/>\n15:24<br \/>\nSo, um, that\u2019s what you start out with. You would want to use the money to generate money as quickly as possible.<br \/>\n15:30<br \/>\nOK, $20,000, $60,000, in my opinion, it really doesn\u2019t matter, OK? I can do the same with 20,000 that I could with 60 when I\u2019m starting out a new venture for the most, for the most part.<br \/>\n15:42<br \/>\nAfter that, you can see what\u2019s needed.<br \/>\n15:44<br \/>\nNow, I will tell you, one gentleman that I worked with, he, he\u2019s a young guy in his late twenties, and I suggested he buy a $5000 business online. That generates $2000 a month.<br \/>\n15:58<br \/>\nAnd 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.<br \/>\n16:09<br \/>\nNow, you can\u2019t do it that way. It\u2019s not a problem.<br \/>\n16:12<br \/>\nNow what was interesting is after he did that Which by the way he said that effort. He it.<br \/>\n16:16<br \/>\nHe 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\u2019s it\u2019s probably just as much effort too.<br \/>\n16:28<br \/>\nBuy an asset is it is a liability so just think about that in any case.<br \/>\n16:33<br \/>\nfour 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.<br \/>\n16:50<br \/>\nThey wanted him to refinance a half a million dollars as a commercial loan in the name of the business.<br \/>\n16:58<br \/>\nOK, the bank wanted this.<br \/>\n17:01<br \/>\nSo it\u2019s in their interest that you get a commercial loan because they can do more with that account.<br \/>\n17:07<br \/>\nthen they can a personal account where the payments are made or based upon someone someone\u2019s ability to keep his job.<br \/>\n17:17<br \/>\nSo I know I talk fast, I\u2019m sorry about that, but I just I want to give you that in a nutshell. OK, I would just recommend don\u2019t accept offers for personal credit, or especially credit cards for your business.<br \/>\n17:30<br \/>\nBecause they\u2019re not going to be unwritten in the name of the business. You can ask about that.<br \/>\n17:34<br \/>\nBut chances are, even if you ask about that, that person is trained to think, that he\u2019s telling you the truth, but actually he\u2019s, he\u2019s not.<br \/>\n17:41<br \/>\nBecause that per person from the bank doesn\u2019t 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.<br \/>\n17:54<br \/>\none example is, if I go to Home Depot, it used to be where I could walk in and get a credit application, and they\u2019ll give me the personal credit application, OK.<br \/>\n18:04<br \/>\nAnd then when I tell the clerk at the desk that I wanted the business application, they\u2019ll give you the business application, but it asked for a personal guarantee on it.<br \/>\n18:13<br \/>\nSo I believe like Home Depot right now, you\u2019d actually have to go to Home Depot website to get the commercial, the real commercial loan application, something like a contractor would use, OK.<br \/>\n18:24<br \/>\nSo you have to go a bit out of your way, but it\u2019s worth it, and that\u2019s how it works with credit.<br \/>\n18:30<br \/>\nAnd you\u2019re going to get 3 net 30 accounts or four to get started, don\u2019t get more. And you probably need more than two. Don\u2019t get more than four.<br \/>\n18:39<br \/>\nAnd that\u2019ll be good for managing cash flow with a business.<br \/>\n18:44<br \/>\nI 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.<br \/>\n18:55<br \/>\nThat would be a way to manage the receivables. And not receivables.<br \/>\n18:59<br \/>\nBut, the way you spend make expenses, OK, paper expenses, right? That\u2019s how I would use it.<br \/>\n19:07<br \/>\nI 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\u2019s like, you\u2019re just like, That sounds clever, and it\u2019s not really the use for it.<br \/>\n19:17<br \/>\nYou 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\u2019ll open it for questions and please, stay on topic.<br \/>\n19:27<br \/>\nI know that there\u2019s a lot of exciting things to talk about, and I promise we\u2019ll get to that, but I just wanted to make this recording about business credit, so that when people see the title, they\u2019re gonna get that information.<br \/>\n19:36<br \/>\nAll right, Now, I\u2019ll call on you, and I see that you want to ask a question?<br \/>\n19:52<br \/>\nOK, good, I will just continue, then, I\u2019m gonna continue with, I don\u2019t see questions here, I\u2019m gonna continue with Real estate.<br \/>\n20:00<br \/>\nSo Real Estate is a bit different, Real Estate, you can get, let\u2019s see here, I\u2019m going real Estate, you\u2019re not going to sit down and bradstreet\u2019s score, you\u2019re going to use the, if it\u2019s, if it\u2019s a commercial real estate or it\u2019s a, it\u2019s a real estate investment, OK?<br \/>\n20:15<br \/>\nIf you\u2019re going to buy a single family residential, you\u2019re going to end up with being the personal guarantor on a mortgage and it\u2019s going to be deemed an investment for an individual. You\u2019re just not going to escape that when you start out, so just understand that part.<br \/>\n20:28<br \/>\nMaybe that\u2019ll happen with your first few real estate purchases. Even if you\u2019re gonna, I\u2019m telling you, even if you have cash, you really should look at getting financing, so it\u2019s OK for real estate, in my opinion, to use your personal credit to get started.<br \/>\n20:40<br \/>\nWhat\u2019s going to happen is, all those investments should be on the Balance Sheet of your company, which is, let\u2019s say, your LLC.<br \/>\n20:49<br \/>\nThat LLC should be receiving the revenue from those investments. Even if you\u2019re 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.<br \/>\n21:01<br \/>\nI\u2019m after awhile.<br \/>\n21:03<br \/>\nYou 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\u2019m just talking about the Balance Sheet. What is it worth? This company, for example, may own to families, to, to single family homes.<br \/>\n21:21<br \/>\nIt may own an apartment complex and maybe a piece of land or something. And that\u2019s on the balance sheet, OK, and there\u2019s some, There\u2019s some cash flow and whatever. So now, maybe maybe the net worth of the company is let\u2019s say one point two million dollars. Let\u2019s 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\u2019s what I\u2019m talking about.<br \/>\n21:47<br \/>\nSo, that\u2019s a little bit different than Dun and Bradstreet.<br \/>\n21:52<br \/>\nDoes anybody want to ask questions?<br \/>\n21:56<br \/>\nTell me that\u2019s crazy.<br \/>\n21:58<br \/>\nBy the way, if I\u2019ll tell you, I don\u2019t do that.<br \/>\n22:01<br \/>\nIt\u2019s 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\u2019s usually from a partner or somebody I\u2019m working with or someone who has a resource.<br \/>\n22:14<br \/>\nSo, let me call on Brad if I could, please.<br \/>\n22:22<br \/>\nHi there. This is Brad\u2019s Wife. Actually, Brad\u2019s 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\u2019re going to do this, and then, you know you\u2019re 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\u2019m taking it that would be under our name, like we would be the personal guarantee. I\u2019m kinda bashing using your name, OK, I\u2019m kinda gathered. But if You have if like, if, I\u2019ll do it, I\u2019ll do it, too. I\u2019ll put my name on a debt If there\u2019s a good plan. And I see I\u2019m gonna be able to turnover, you know some money and pay it down.<br \/>\n23:15<br \/>\nAnd if it\u2019s a 30 year loan, my first thought is I\u2019ll never take 30 years to pay off \u2026 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.<br \/>\n23:26<br \/>\nJust 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.<br \/>\n23:37<br \/>\nThe 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\u2019s why I always tell them, OK, well, that\u2019s going to, they\u2019re offering you a personal credit card with a business name, so the bank has no liability, so that\u2019s really my message there.<br \/>\n23:55<br \/>\nBut if you listen, I did mention.<br \/>\n23:58<br \/>\nLater on today, I did I think I did that if it\u2019s You\u2019re 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.<br \/>\n24:13<br \/>\nI talked to so many people that their whole thinking is My my personal credit is bad.<br \/>\n24:18<br \/>\nSo, I want to switch to Business Credit, and keep doing the same thing I was doing so, I know you\u2019re not doing that, but sure, it\u2019s OK, and, as you know, you\u2019re not going to take 30 years to pay it off.<br \/>\n24:28<br \/>\nSo, 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.<br \/>\n24:41<br \/>\nThe SBA is a broker for the banking system.<br \/>\n24:46<br \/>\nAnd 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.<br \/>\n24:55<br \/>\nBut it may feel painful.<br \/>\n24:58<br \/>\nI\u2019ll tell you, in Europe, if you go for a loan, the bank will find out what you own and their people don\u2019t put things in company names over their trust and Europe, and they\u2019ll take collateral and everything, even your furniture and that will be described in the loan contract. So I looked at the SBA\u2019s deals lately.<br \/>\n25:15<br \/>\nJust be careful with the SBA, you might turn into something like a government secured loan, and also consider who you\u2019re talking to, your CPA\u2019s. You know, I don\u2019t know. Did you asked his opinion, heard he bring it to you?<br \/>\n25:31<br \/>\nHe brought it to us.<br \/>\n25:34<br \/>\nI\u2019m sure he\u2019s an honest guy, I would just ask what\u2019s 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\u2019ll tell you. So, yeah, it\u2019s good to know When you have a sales pitch, and it\u2019s OK to have a sales pitch. You know it\u2019s informative.<br \/>\n25:53<br \/>\nKnow who you\u2019re talking to, your CPA\u2019s, not, probably not investor, he\u2019s probably a CPA only, which is a professional, so.<br \/>\n26:03<br \/>\nOK, thank you.<br \/>\n26:04<br \/>\nAll right, and then there was Double A.<br \/>\n26:13<br \/>\nA. Tiny. want to say that.<br \/>\n26:16<br \/>\nOh, yes, it\u2019s a, all right, John. Alright.<br \/>\n26:22<br \/>\nPretty good. What\u2019s going on with?<br \/>\n26:24<br \/>\nDo have a question? Do you try to get there? Can you hear me now? Yes, I can.<br \/>\n26:31<br \/>\nAnd I actually am asking about is it possible for a foreigner to do the LLC thing?<br \/>\n26:37<br \/>\nYeah, the foreigner can do that.<br \/>\n26:39<br \/>\nSo someone from another country can use an LLC in the states, That\u2019s what you\u2019re talking about.<br \/>\n26:45<br \/>\nYou can open a bank account, it states. The one limitation is you\u2019re going to need an EIN for the LLC.<br \/>\n26:51<br \/>\nYou can pay someone $50 to do that for you. There\u2019s a professional service that does that. I don\u2019t do that.<br \/>\n26:57<br \/>\nUm, but then you can get, you can get an account open. Sometimes you don\u2019t need an account here, a bank account. Some people just wanted to deal with Caleb and Brown and then go back to their country.<br \/>\n27:06<br \/>\nYou can take an LLC from here and domesticated in your country.<br \/>\n27:09<br \/>\nI would just I don\u2019t always like to recommend that because maybe there\u2019s something local that you can use. Maybe there\u2019s a really good reason to do that.<br \/>\n27:15<br \/>\nLike if you\u2019re in Canada and you\u2019re OK with using Caleb and Brown and that\u2019s part of your plan. That\u2019s great. And the UK, same idea.<br \/>\n27:23<br \/>\nI don\u2019t like to recommend something just because I sell it.<br \/>\n27:27<br \/>\nBut from what you\u2019re saying, the answer is yes you\u2019re asking me that.<br \/>\n27:35<br \/>\nOK, so uhh, to make it clear that I\u2019m citing in States for about four years now. I\u2019m waiting for my, my green card. And yeah, it\u2019s still on the I don\u2019t know when It\u2019s going to be proceed. Yeah, but that was stuck here.<br \/>\n27:53<br \/>\nAnd I got my social, and I get my license.<br \/>\n27:57<br \/>\nSo, can I go through with the LLC process, and I get my crypto account in Coin Base and in By \u2026, And I\u2019m 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.<br \/>\n28:19<br \/>\nSo, yeah, it\u2019s 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.<br \/>\n28:31<br \/>\nYou can, if you\u2019re 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\u2019s from another country.<br \/>\n28:39<br \/>\nNow in your case, you probably have a green card, right, So that would be easy to do.<br \/>\n28:45<br \/>\nNot yet, not yet. In the middle, so it might not know, green card. So like the process, that\u2019s why my position is stateless.<br \/>\n28:54<br \/>\nIt 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.<br \/>\n29:05<br \/>\nOK, so what ID, what national ID do you have?<br \/>\n29:12<br \/>\nMy idea, I got my license here No, but you have a driver\u2019s license.<br \/>\n29:20<br \/>\nYes, OK. That, that, and what else do you have? What other form of ID to asking?<br \/>\n29:25<br \/>\nBecause the bank will ask you for two forms of ID, I got my license and the real ID.<br \/>\n29:32<br \/>\nAnd just social, OK, You probably need one more form of ID, like a government idea of some kind.<br \/>\n29:41<br \/>\nBut just ask the bank, but based on human life.<br \/>\n29:47<br \/>\nPick a bank and ask if you can open an account with the current IDs that you have.<br \/>\n29:54<br \/>\nMy bank account already. So, yes. And do the same thing. You can certainly do an LLC.<br \/>\n30:03<br \/>\nI see my bank account and my checking and might say, well, that\u2019s easy. Then, of course, all you\u2019re gonna do is open a different kind of account.<br \/>\n30:13<br \/>\nRight. I see, OK. All right.<br \/>\n30:15<br \/>\nSo, I just want to make sure before proceeding to the next step, OK, very good, Thank you, John. All right, OK, and someone\u2019s asking me here on the chat about Brecht\u2019s business card. I don\u2019t know what that is, I mean, I can look it up.<br \/>\n30:27<br \/>\nThis just looks to me when you have all these different services, debit credit.<br \/>\n30:32<br \/>\nYeah, yeah, it says it doesn\u2019t use your SSN, OK. That\u2019s fine.<br \/>\n30:36<br \/>\nIt doesn\u2019t really matter.<br \/>\n30:37<br \/>\nIt\u2019s funny, the banks have all that information already, even before you walk in.<br \/>\n30:41<br \/>\nSo, I would just look at the Terms of Service, right?<br \/>\n30:44<br \/>\nJust look at your credit terms, and ask the person who\u2019s offering you this at the bank, ask how the account is going to be underwritten.<br \/>\n30:53<br \/>\nThat will give you the answer, and you can decide if you want to do that, because it\u2019s OK to be the personal guarantor. I\u2019m just saying, no.<br \/>\n31:00<br \/>\nWhen you are, don\u2019t be tricked into doing it when you don\u2019t. When you don\u2019t know that, you\u2019re doing that.<br \/>\n31:06<br \/>\nBecause when someone says to you, I\u2019ll give you a business credit card and you stop there and say, Great, let\u2019s do it. And you assume that it\u2019s truly a business credit card, and you make the mistake of letting them underwrite your personal credit and now, all of a sudden, you\u2019re on the hook personally.<br \/>\n31:23<br \/>\nSo just be aware of that.<br \/>\n31:26<br \/>\nBut yeah, I had, I\u2019ve had LinkedIn, like the Commerce conversations with people.<br \/>\n31:29<br \/>\nUm, when gentlemen wanted to use Dun and Bradstreet for, for real estate, that\u2019s another reason why I want to talk about this, because I don\u2019t, I don\u2019t see that they mixed together.<br \/>\n31:38<br \/>\nNow, if I\u2019m 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\u2019m a property manager. Well, then, definitely, I think a Net 30 type profile should be set up.<br \/>\n31:56<br \/>\nThat\u2019s a great use for it, and that is kind of a real estate investment, it\u2019s more of a business investment, but a property manager would be great with them.<br \/>\n32:04<br \/>\nUh, business has done a Dun and Bradstreet credit.<br \/>\n32:07<br \/>\nYeah, Briggs Card. I mean, you guys can look it up.<br \/>\n32:10<br \/>\nI don\u2019t know anything about Eurex card.<br \/>\n32:18<br \/>\nAlright. We\u2019ll do that. So anybody have any more questions? I know someone\u2019s just joining us.<br \/>\n32:24<br \/>\nYes, hi, John. How are you as Carlos \u2026 Good, thanks.<br \/>\n32:28<br \/>\nGood, good. Quick question. I\u2019m not sure if we covered it as well, not just try now.<br \/>\n32:32<br \/>\nWe 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.<br \/>\n32:55<br \/>\nIs that something that\u2019s possible, or one as you go through through many loops?<br \/>\n32:58<br \/>\nThen do you want to borrow money to to buy a house?<br \/>\n33:05<br \/>\nThat, you\u2019re gonna look for my residency. Yeah, yeah, OK.<br \/>\n33:09<br \/>\nUm, you can do that.<br \/>\n33:13<br \/>\nIt\u2019s just that, I mean, you\u2019re just going to borrow the money in your name. That\u2019s what\u2019s going to happen OK. If you want to do it as if it\u2019s not an investment. So, so, no bank is gonna look at that as an investment.<br \/>\n33:25<br \/>\nThey\u2019re gonna look at it and say OK, you want the LLC, they are going to see you\u2019re associated with the company and they\u2019re 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.<br \/>\n33:37<br \/>\nSo, you\u2019d better come to the bank with a good balance sheet.<br \/>\n33:40<br \/>\nAnd that\u2019s not a usual transaction.<br \/>\n33:41<br \/>\nI mean, using your own company to borrow money in the company name, to buy your own house, in which you\u2019re gonna live. I don\u2019t know why you\u2019d want to do that. Sure. If you have a good net balance sheet, don\u2019t do it.<br \/>\n33:56<br \/>\nYou gotta have a balance sheet, though, you gotta have something on the books that looks like you have you know what you\u2019re doing with real estate.<br \/>\n34:02<br \/>\nYeah, OK.<br \/>\n34:09<br \/>\nOK, and you\u2019re asking someone\u2019s asking about the the Proposed Biden Tax Plan to have all Bank transactions directly reported to the IRS.<br \/>\n34:19<br \/>\nI don\u2019t know what that means.<br \/>\n34:21<br \/>\nI mean, I really don\u2019t, The purpose of the blockchain is to do that.<br \/>\n34:26<br \/>\nI 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\u2019t 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.<br \/>\n34:48<br \/>\nKinda, don\u2019t care what they do. I\u2019m not even following. I don\u2019t even follow what they do with the tax code. I wait for people to tell me, because it almost doesn\u2019t matter in all my years of doing this.<br \/>\n34:58<br \/>\nAll the changes that I\u2019ve seen have never adversely impacted anything I\u2019ve done.<br \/>\n35:02<br \/>\nBecause I don\u2019t use their system. I don\u2019t I don\u2019t try to do things like a 1031 exchange. I don\u2019t care if they change 1031 laws.<br \/>\n35:09<br \/>\nI\u2019m still going to do works, you know?<br \/>\n35:13<br \/>\nOK, when I have a quick question, OK, do you know the website open corporates dot com.<br \/>\n35:21<br \/>\nNo, I haven\u2019t seen that one.<br \/>\n35:22<br \/>\nSo, apparently, if you put in your name, you\u2019re able to see of a company that\u2019s registered on your name, OK. It\u2019s good and it works all over the world.<br \/>\n35:31<br \/>\nThe reason I\u2019m asking is aye.<br \/>\n35:36<br \/>\nRegarding 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.<br \/>\n35:49<br \/>\nUnfortunately, I didn\u2019t do it under an LLC, so since it was last year I would have to disclose that census undermining.<br \/>\n35:57<br \/>\nPersonally personally yes, yes, You bought a company in a foreign country.<br \/>\n36:03<br \/>\nYeah, not form X one, I\u2019m sorry.<br \/>\n36:05<br \/>\nPoint corporation, OK, you, you bought a foreign corporation?<br \/>\n36:11<br \/>\nYeah, OK.<br \/>\n36:12<br \/>\nThat just has ugly disclosure requirements.<br \/>\n36:15<br \/>\nI talked about this, and I think it\u2019s the last call we had.<br \/>\n36:18<br \/>\nWe were talking about the 1971 and all that, so that\u2019s, that\u2019s really what you\u2019re concerned with there. You should look at that.<br \/>\n36:24<br \/>\nShould do a, she just wasn\u2019t an LLC.<br \/>\n36:28<br \/>\nPersonally, I\u2019m sure that\u2019s a different scenario two, but no LLC doesn\u2019t solve all your problems.<br \/>\n36:36<br \/>\nWhen 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.<br \/>\n36:44<br \/>\nThey\u2019re very complicated.<br \/>\n36:45<br \/>\nAnd the statute of limitations can always be waived just because the IRS decides to do that.<br \/>\n36:51<br \/>\nSo the fact that you\u2019re signing and identifying yourself as a US citizen, it\u2019s the problem. It doesn\u2019t matter about companies or anything like that.<br \/>\n37:01<br \/>\nLet 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\u2019ve never done that. I don\u2019t have a deal with these people. This is an international network of professionals, and they do include attorneys. I\u2019m not advocating attorneys, but sometimes they\u2019re useful.<br \/>\n37:18<br \/>\nThey are, they\u2019ll do all kinds of things.<br \/>\n37:20<br \/>\nLike, for example, like, from what you\u2019re describing right here, I would recommend being, having a, a nominee Directors to operate that.<br \/>\n37:29<br \/>\nIf it\u2019s that important.<br \/>\n37:30<br \/>\nI also recommend that, if you\u2019re going to do that, make sure that you have an operation in that other country.<br \/>\n37:36<br \/>\nThere\u2019s something going on there, and then you\u2019re 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\u2019re not re-inventing the wheel. And so, you\u2019re also not paying too much money for some quack in Guatemala that says for $20,000. He can do this thing for you, OK.<br \/>\n37:58<br \/>\nThen the website for this organization is called O C R A okra.<br \/>\n38:04<br \/>\nI forget what it stands for: OC RA dot com oh, CRA dot com is this organization that can set those things up. That\u2019s a very simple thing for it. To do. another thing you can do if you guys want to check this out.<br \/>\n38:15<br \/>\nIf 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.<br \/>\n38:27<br \/>\nThey can do the whole thing soup to nuts.<br \/>\n38:30<br \/>\nThey 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.<br \/>\n38:38<br \/>\nSo, CRA dot com is a tool that you guys may want to check out That can handle some of this stuff for you. There\u2019s 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.<br \/>\n38:50<br \/>\nAnd you should, you should do it with a little sophistication either using an international business company, you go through a service like \u2026 dot com or and I would just throw this at you.<br \/>\n39:03<br \/>\nAn ABC that I recommend would be something in Hong Kong and I\u2019ll let you do the research on that you can see for yourself if it\u2019s something you want to do. But again, I just recommend, if you\u2019re going to do some off shore there, you have to have a real interest over there. Don\u2019t just set up a company, I\u2019m sure it because it sounds cool.<br \/>\n39:17<br \/>\nAnd then send your newfound wealth over there, I mean, unless you\u2019re gonna start a factor or something, right.<br \/>\n39:24<br \/>\nI thought I\u2019d just recommend.<br \/>\n39:29<br \/>\nSo anything else on the lending that I cover that? I know there\u2019s a million questions afterwards.<br \/>\n39:34<br \/>\nOther 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\u2019t know that it\u2019s so much detail. There may be. there may be an older video on it, but I\u2019m going to put more content in addition to this one we\u2019re doing right now.<br \/>\n39:54<br \/>\nSo there will be more detail. Yeah.<br \/>\n39:56<br \/>\nfour mm.<br \/>\n39:58<br \/>\nYeah, 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\u2019m doing as fast as I can. So, let me know if there\u2019s something that you really, you know, it\u2019s interesting, and I can do it if I, if I know about it.<br \/>\n40:12<br \/>\nI have certain limitations. I am going to start bringing in some. Let me just, let me just end this call, and I\u2019ll tell you guys real quick. Are we done with the credit stuff?<br \/>\n40:21<br \/>\nThat\u2019s good for. Now.<br \/>\n40:22<br \/>\nLet\u2019s say sometimes we don\u2019t need credit from third parties, we don\u2019t need a credit filed with Dun and Bradstreet, and I\u2019ll just tell you personally, From from my experience, since I\u2019ve been in junior high school, I\u2019ve been running businesses and I use other people\u2019s resources or I like to partner with people.<br \/>\n40:40<br \/>\nI\u2019d like to do joint ventures.<br \/>\n40:42<br \/>\nI like to use other people\u2019s resources, And the way I do, it is the biggest, And the most important thing there is just keeping your word, You say you\u2019re going to do something, you have to do it no matter what. Because if you don\u2019t, that is your credit. You\u2019ll never gonna get back in the game or easily if you, if you don\u2019t keep your word. So that\u2019s number one, but I usually end up splitting the net.<br \/>\n41:03<br \/>\nWhat 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\u2019ll just partner with that person and say, hey, like, I have this idea. If you want to help me with it, we\u2019ll just split whatever\u2019s left over.<br \/>\n41:16<br \/>\nThat\u2019s usually a really attractive, because I don\u2019t want to minimize that person is involved because without him, I couldn\u2019t do it right. So, I\u2019m willing to do the 50% now, sometimes I\u2019ll even pay more, it just depends on what kind of arrangement. So, those are the, those are the kind of deals I\u2019ve 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.<br \/>\n41:35<br \/>\nOr, if I have lots of cash, I\u2019ll get someone to buy me out later, or something like that.<br \/>\n41:38<br \/>\nSo, anyways, I just want to mention that.<br \/>\n41:40<br \/>\nBut I\u2019m going to, I\u2019m going to shut this up now. I\u2019m going to stop the recording now.<\/p>\n        <\/div>\r\n    <\/div>\r\n\r\n    \r\n<\/div>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-3323aba elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"3323aba\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-579aac4\" data-id=\"579aac4\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-2447508 elementor-widget elementor-widget-spacer\" data-id=\"2447508\" data-element_type=\"widget\" data-widget_type=\"spacer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-spacer\">\n\t\t\t<div class=\"elementor-spacer-inner\"><\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-26a8967 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"26a8967\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-6d7bf5b\" data-id=\"6d7bf5b\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-ca0f18b elementor-widget elementor-widget-text-editor\" data-id=\"ca0f18b\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>Summary<\/strong><\/p><p style=\"padding-left: 40px;\">1. The speaker, John Jay, discusses the importance of understanding and using business credit, especially when connected to Limited Liability Companies (LLCs). <br \/>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. <br \/>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&#8217;s liability under certain consumer protection laws.<br \/>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.<br \/>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.<br \/>6. He recommends using the Dun and Bradstreet service to create a credit file, and using the catalog service Uline to build the company&#8217;s credit history with prompt payments. <br \/>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.<br \/>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.<br \/>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.<br \/>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.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-e0775dd elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"e0775dd\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-d537d2d\" data-id=\"d537d2d\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>U26- Using Business Credit, Net 30, lines of credit, versus Real Estate<\/p>\n","protected":false},"author":131,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[124],"tags":[],"_links":{"self":[{"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/posts\/16641"}],"collection":[{"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/users\/131"}],"replies":[{"embeddable":true,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/comments?post=16641"}],"version-history":[{"count":7,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/posts\/16641\/revisions"}],"predecessor-version":[{"id":25293,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/posts\/16641\/revisions\/25293"}],"wp:attachment":[{"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/media?parent=16641"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/categories?post=16641"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/privacyfight.io\/wp-json\/wp\/v2\/tags?post=16641"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}