My credit score is 700, and all that’s preventing me from establishing business credit is ignorance. I’ve prepared my LLC, read a few books, watched a ton of YouTube videos, and taken notes, but I’m too afraid to apply. I want to establish my company credit in order to purchase a multifamily property and earn a few rentals. Has anyone used a business to do it this way before?
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Even if your credit score was 850, this won’t work. It is necessary to demonstrate to the bank that you have sufficient income to cover the mortgage in order to be approved for one. Demonstrating that your company is successful enough to qualify for a business loan is much more difficult. What you’ve seen on YouTube is scammy or full of hoaxes. Take caution.
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Note This: Get a solid, secure employment that pays on a W2 if your goal is to acquire a home. Before speaking with a bank, ensure that your revenue is consistent for a full year. Work on your small company plans in the meantime. I have never purchased a home with my own money, nor have any of my family members or business partners.
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Speaking with a business counsel is, in my opinion, the greatest place to start. Speak with the Small Business Development Centre (SBDC) in your state if you reside in the United States. You may find out what you need to do to be eligible for a loan by speaking with one of their advisors, who can help you at no cost.
The SBDC provides loans as well. To obtain a loan, you are not need to go via a bank. In any case, SBDC rates are typically higher than bank rates.
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