Tag Archive for: business credit cards

8 Easy Tricks to Improve Credit for Small Businesses

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8 Easy Tricks to Improve Credit for Small Businesses

Today we will be talking with Alex Erlich, a credit advisor and educator, about the 8 easy tricks that you can do to improve credit for small businesses. Those who know the rules and how to play the game will be in the best position to win! Let’s take a closer look! 

1. Do Not Open New Credit! 

Do not open new credit unless you have talked with a professional and they have created a step by step outline. Here at The Cash Flow Company we can help you apply for a 911 loan. This can be used to take care of items on your credit that are holding you back financially.

2. Fix Old Information.

It is important that you remove any derogatory information that is on your credit report. Now is the time to see what can be done about it and how to leverage it, especially if it’s a local bank. Something from three to five years ago that already has a zero balance, should be removed. Remember to be methodical and purposeful.

3. Fast Inquiry Removal.

Take into account all of your inquiries. If you have been shopping for money and applying for things, look into a fast inquiry removal. This can make a substantial positive impact on your credit score. If you are using your personal credit to inquire about your business, those should all be disputed as well. 

4. Build Local Relationships.

Relationships are key to a successful business. Investors need to determine which companies are having the hardest time or tightening their budget. These are the ones that will leave you behind so they can swim upstream. Oftentimes they are searching for bigger and better clients. By building local, human, real relationships, the more successful you will be.

5. Run All Transactions Through Business Account.

It is imperative that you run all of your transactions though a business account. In doing so, you will correctly paint the picture that people want to see. Whether we are talking about personal credit, business credit, leverage, banking, or relationships, we want to consider who is reading this book and what they are reading. Keep in mind that the reader’s personal experience is dictating what they are reading in the picture book that you create. 

6. Pay Cards Before Statement Cycle Closing Date.

Investors need to pay their credit cards before the statement cycle closing date. In doing so, it ensures that the utilization rate is as low as possible. This information can be found on MyFico, as well as by looking at the actual statement. 

7. Establish Business

The next step that you need to consider is whether or not you are established as a business. To clarify, a properly established business has a business license, business phone number, and an EIN. In setting up your business correctly from the beginning, it will provide more opportunities for you than you would have otherwise. 

8. Shop around

It is imperative that you shop around and find the lenders, as well as the products you need for your business. Keep in mind that there are always banks looking to expand and grow. These are the ones that will be helpful in growing your business as well.  

In conclusion.

It is important that you not only establish your business correctly from day one, but that you also work on forming positive relationships. By doing so, it will ensure that you set your business up to win. The faster you can separate your business vs personal credit, the better your personal credit score. In turn, it will also create more leverage for future growth. Give us a call! We can help guide you through this process! 

Contact us today to find out more about setting yourself up for success.

Watch our most recent video to find out more about the 8 Easy Tricks to Improve Credit for Small Businesses

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Personal Credit vs Business Credit: When and Where to Start

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Personal Credit vs Business Credit: When and Where to Start

Here at The Cash Flow Company we have seen so many people become overwhelmed and confused by credit! Alex Erlich, a credit advisor and educator, is joining us today to discuss personal credit vs business credit with a focus on when and where to start. Don’t let the numbers overwhelm you! We are here to help walk you through the process!  

The importance of planning ahead!

In order to be successful in real estate investing it is important that you plan ahead. There is a common expression stating that “you should always get things before you need them, because when you most need them you’re least likely to get them.” This is especially true in real estate investing. Investors who got lines of credit a few years ago will be at a greater advantage than those who are trying to get them now. Those who apply now will need to be in a better position with their personal credit in order to be approved for the same products. 

Separating personal and business credit.

By separating personal and business credit, it will prevent further strain on your personal credit, increase loan eligibility, and create more leverage. What exactly do we mean by leverage? Leverage is how much you are eligible for and what it looks like on paper. Leverage is the King in real estate. Having more leverage allows for more opportunities, not only your business, but for your personal life as well. 

The ideal Credit Score

MyFico.com is the best place to obtain credit score information. This site not only provides an overall credit score, but it also separates scores into 40 different categories. It can be an information overload, however, by going straight to the source it provides you a cost free and spam free way to gather all of the information you need. So what is the ideal credit score that lenders are looking for? The ideal credit score range should be between 680 and 720. However, with the current economy, banks are increasing their minimum requirements to 720 and above. How do you get from 680 to 720? We can help you discover ways to improve your scores quickly to get you back in the game.

Don’t let your personal credit score impact your business success!

The faster you can separate your personal credit from your business credit, the better your personal credit score will be. We can guide you through the steps. From establishing your business, to finding the right business credit cards, and even providing a 911 loan, we have the tools to help you win.

Contact us today to find out more about setting yourself up for success.

Watch our most recent video to find out more about Personal Credit vs Business Credit: When and Where to Start

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Tricks for Business Credit Cards that Propel Your Business

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Tricks for Business Credit Cards that Propel Your Business

Today we are going to discuss some of the tricks that you can use to propel your business using business credit cards. Unfortunately many real estate investors have racked up a lot of debt using their personal credit cards for business expenses. The beautiful thing about a business credit card is that you often find ones that are 0% for 18 months. By taking advantage of this, you can move items off of your personal card over to your business credit card. In doing so, you will be able to help free up your personal credit while increasing your credit score as well. Are you wondering how you can get started and the roadblocks you may face? Let’s take a closer look! 

What is the biggest roadblock?

One of the biggest roadblocks that you might face when getting a business credit card is not having the credit score you need. However, many investors need a business credit card in order to improve their credit score. Don’t let this catch prevent you from getting what you need! There are a few options that could help. Improve your credit scores today by using your savings or a usage loan to pay down balances quickly and easily. Once the business credit cards are open, you can then migrate any further charges over to the new card. 

Watch out for companies who report!

Keep in mind that some lenders like Capital One report to your personal credit report, while others do not. Some  lenders who do not report are Chase, American Express, Regional banks, BOK, US bank and Vectra, just to name a few. These lenders offer really good incentives that will encourage you to do business with them. Remember to take your time and find the right lender for your needs.

Where do you start?

It is important that you go to the larger banks in order to get unsecured loans, business credit cards, and unsecured lines. These are just a few of the things that they love to do. The smaller banks on the other hand are excellent for setting up relationships with. These relationships are helpful when you are ready to bring on more rentals, or when you want to have banks help you with flips. In regards to business credit cards specifically, you are not typically able to go to the smaller banks or credit unions. Oftentimes they do not have the best rates, terms, or products compared to the bigger banks. 

What can business credit cards be used for?

Business credit cards can be used for a wide variety of things including growth, bringing on more people, office space, paying contractors, and so much more! To clarify, business credit cards allow you to spend up to your limit without penalizing you. Keep in mind that you need to manage them correctly in order to see the benefits and avoid unsecured debt that will be reported later on. Apply for a business credit card today and find the money you need to grow your business. 

For example:

Here at The Cash Flow Company we just opened a business credit card ourselves with 0% interest for 18 months. We were able to purchase software for a total of around $13K using our business credit card.  In doing so, it is helping us grow without paying the interest. 

Contact us today!

Don’t be the reason that credit card companies make good money at your expense! Take the time and do your research every year to find the best deals that will help your company grow! Contact us to find out more about business credit cards and other tricks that can help propel your business!

Watch our most recent video about Tricks for Business Credit Cards that Propel Your Business.

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Most Small Business Owners Fail at THIS

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Most Small Business Owners Fail at THIS

Alex Erlich, a credit advisor and educator, is joining us today to discuss what most small business owners fail at! The main focus for today’s conversation is the importance of leveraging business credit vs personal credit. Credit and debt are not equal in any shape or form, but we have to play the game to win it. Knowing the rules of how to play will get you in the best position to win! Whether it’s the credit card game, credit game, or the leverage game, you need to create a leverage profile. Let’s take a closer look!

How to leverage business credit instead of personal credit?

So many people are putting business expenses on their personal credit. Unfortunately that is not as efficient as one might assume. 70-80% of clients are overextended on projects, and have maxed out their credit cards. Thus making it extremely difficult to be approved for additional loans moving forward without further impacting personal credit scores. In order to prevent this landslide, we need to approach business expenses more professionally and keep everything business focused. In doing so, it will prevent further strain on your personal credit, increase eligibility, and create more leverage. What exactly do we mean by leverage? Leverage is how much you are eligible for and what it looks like on paper. Leverage is the King in real estate. Having more leverage allows for more opportunities, not only your business, but for your personal life as well.  

How do we turn the focus from personal to business? 

First and foremost individuals need to acknowledge that they have a business. Surprisingly, many business owners don’t consider themselves to be entrepreneurs. From realtors, to contractors, and everyone in between, they typically consider themselves to be employees of the overwriting company. However, this mindset needs to change! They should not only view themselves as entrepreneurs, but also a representation of the brand. Another component that should be evaluated are items on your personal credit that need to be removed. This will in turn prevent you from personal liability as you continue to grow your business.

We are here to help you!

Here at The Cash Flow Company we want to set you up for success! Are you ready to start your own business but wondering where to start? Do you have personal credit cards that have business expenses on them? Contact us today to find out what you need to do in order to win in real estate investing! 

Watch our most recent video to find out more about: Most Small Business Owners Fail at THIS. 

Watch the complete interview with Alex Erlich now to learn even more! 

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Real Estate 2024: Your Credit Score Matters

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Real Estate 2024: Your Credit Score Matters

Today we are going to discuss why your credit score really matters. On average, we talk to 20 to 25 investors a day. Many of them are facing a number of hurdles that are not only impacting them, but their investments as well. By looking at the patterns that we have seen over the years, it allows us to better meet the needs of our clients. How can your credit score impact your success as a real estate investor? Let’s take a closer look.

Credit score obstacles.

Your credit score can often hinder your success in real estate investing. Over half of our calls are from people who have a score that is too low for them to get what they want. For example, we have a guy from Texas who is trying to get his property refinanced.  While the property is great and he has an amazing tenant, his credit score is too low for him to get the rate he needs to cash flow. By working on your credit scores and setting things up right, you can achieve the credit score you need to get what you want. 

Business credit cards.

Getting business credit cards is the #1 thing that will help you achieve your goals in real estate investing! Those who are able to get business charges off of their personal credit cards will in turn open up a lot of funding options. Struggles with credit scores is often the cause of people getting out of real estate investing. Don’t let this happen to you! 

Increasing your credit score quickly.

We have a lot of different options available to investors that will help them get their credit score back on track in a matter of weeks! 

  1. Usage loan

A usage loan is used to pay down credit cards by using a private loan. As a result of paying down the credit cards, it raises your credit score. By increasing your credit score it will then allow you to refinance and buy your next investment property. 

  1. Business credit cards

We can not stress enough how important business credit cards are! By setting up business credit cards instead of personal credit cards it will help to increase your funding options. The majority of business credit cards do not report your usage. Therefore they are not hurting your DTI or your credit score. Make the change today and see the effects it can have on your credit score! 

Are you on the right path? 

Contact us today if you have any questions about how to get started in real estate investing! Do you have a property in mind? Send us the numbers and we will see if it is a good investment opportunity for you. Since your credit score and funding are such crucial pieces to your success, it is important that you know them before diving into a deal!  

Watch our most recent video to find out more about Real Estate 2024: Your Credit Score Matters.

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Real Estate Investing: Popular Questions Asked and Answered

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2024 Real Estate Investing: Most Popular Questions Asked and Answered

Today we will be answering a few popular questions in real estate investing. On average, we talk to 20 to 25 investors a day. Many of them are facing a number of hurdles that are not only impacting them, but their investments as well. By looking at the patterns that we have seen over the years, it allows us to better meet the needs of our clients. What are the hurdles and how can you avoid them? Let’s take a closer look.

#1: How do I get 100% financing?

Everyone wants to get into real estate investing with 100% financing. How can they get the money they need for their rental property or fix and flip? While there are some lenders who offer 100% financing, they will only do so if you have already done 1 or 2 deals. For those who have not, it is important that they look into other options. If you are looking for 100% financing on a property it is important that you open up to other financing options other than traditional loans. Many traditional lenders will only lend 80% to 90%. Become a real Real Estate Investor by building your confidence to go ask people for the money you need for your investments. By finding good deals and demonstrating your confidence, the sky is the limit to your success.

HELOCS:

HELOC stands for home equity line of credit. A HELOC allows you to take money out of your property or a rental property. You can then use these funds to bridge the lending gap for your next investment.

Real peoples money:

Real people are those within the community who are in search of better returns on their funds. There are a ton of people out there who have $20K to $100K to invest and are looking for better returns. 

Start using creative financing:

Creative financing includes credit cards, which can be used to fund the rehab, staging, and even a Vrbo. However, it is important to keep in mind that the credit card needs to be a business credit card at 0% in order to be beneficial to you and your investment needs. 

What is stacking and how can it help you reach your financing needs?

The lending journey begins with your primary mortgage company who will give you 80% to 90% financing. This creates a funding gap that leaves you searching for additional financing options in order to get up to 100% financing. Gap funding options can include HELOCS, family friends, real peoples money, and even establishing a partnership. 

#2: Be prepared. 

Inflation is causing everything to become tighter and as a result it is harder to find financing for your investments. In order to be successful, investors need to be prepared before they go out and look for properties. This will give them a better chance of being approved for the lending that they need. Here at The Cash Flow Company we are searching  for deals where we can lend people money, get it back, and lend it back out again. What do you need to do to be prepared?

Valuation:

It is imperative that you have all of your numbers in line before talking to lenders. Keep in mind that wholesalers often stretch the value of the property. That is why it is important that you look at the numbers yourself to prevent frustration. When you are coming to lenders make sure that you know your values, know how appraisers look at properties, and make sure that your numbers are in line. These numbers include purchase, rehab, and rent. At the end of the day your goal is to create income and wealth. 

For example:

Someone reached out who is buying a single family house and he is going to make it into a two unit property. This single family property will sell for $200K. However, his belief was that the property will be worth $400K because he is splitting it into two properties. Unfortunately, that is not how the market works. 

#3: The future of real estate investing.

Many people wonder what the future of real estate investing is. How can they make money on buying rentals? Making money on rental properties right now is becoming a struggle because properties are $600K to $800K. While this is a concern for many investors, there are some options available to make investments more profitable. 

What is a padsplit?

A padsplit is when a property is divided into multiple single units. For example, a 3 bedroom could be divided into a 6 or 8 bedroom property. Just to clarify, each of the bedrooms would have a bathroom and all they would share is the kitchen space. Each unit could bring in a rental amount of $1,000, which could potentially total $6,000 to $8,000 per month depending on how many units you have. With an overall monthly rent of $3,500, the investor would have the cash flow they need to be successful. This method provides the flexibility and affordability that many people are looking for.

#4: Credit score obstacles.

Your credit score can often hinder your success in real estate investing. Over half of our calls are from people who have a score that is too low for them to get what they want. For example, we have a guy from Texas who is trying to get his property refinanced.  While the property is great and he has an amazing tenant, his credit score is too low for him to get the rate he needs to cash flow. By working on your credit scores and setting things up right, you can achieve the credit score you need to get what you want. 

Business credit cards.

Getting business credit cards is the #1 thing that will help you achieve your goals in real estate investing! Those who are able to get business charges off of their personal credit cards will in turn open up a lot of funding options. Struggles with credit scores is often the cause of people getting out of real estate investing. Don’t let this happen to you! 

Increasing your credit score quickly.

We have a lot of different options available to investors that will help them get their credit score back on track in a matter of weeks!

Usage loan

A usage loan is used to pay down credit cards by using a private loan. As a result of paying down the credit cards, it raises your credit score. By increasing your credit score it will then allow you to refinance and buy your next investment property.

Business credit cards

We can not stress enough how important business credit cards are! By setting up business credit cards instead of personal credit cards it will help to increase your funding options. The majority of business credit cards do not report your usage. Therefore they are not hurting your DTI or your credit score. Make the change today and see the effects it can have on your credit score! 

#5: Small steps vs Giant leaps

Oftentimes real estate investors make the process of getting started into such a big deal that their brain shuts off. As opposed to looking at one property a day, many attend a class that says that they need to purchase their first property within the first 30 days. This method is not always realistic for most people. Instead, you need to focus on the steps that stretch you a little bit as opposed to shutting you down. Consistency is the tortoise in real estate investing. By looking at one property a day and talking to one contractor a day, you will be better prepared to purchase your first investment property. Remember, it’s better to have 2 properties that are successful than to have 5 that are struggling.

Are you on the right path? 

Would you like to find out more about the popular questions in real estate investing? Contact us today! Do you have a property in mind? Send us the numbers and we will see if it is a good investment opportunity for you. Since funding is such a critical piece in real estate investors’ success, it is important that you know your numbers ahead of time to make things easier, cheaper, and faster. Also remember that by building your team now, you can set yourself up for the generational wealth that you want. 

Watch our most recent video 2024 Real Estate Investing: Most Popular Questions Asked and Answered to find out more.

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Help! I Can’t Get a DSCR Loan Because of My Credit

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Help! I Can’t Get a DSCR Loan Because of My Credit

Many investors are struggling to get a DSCR loan because of their low credit score! However, there is a magical solution that can easily solve this problem. It is called a 911 usage loan! Here at The Cash Flow Company we help people raise their score so that they can get the loan they need. On average we see 7 out of 10 people struggle with a usage problem. How can they get back on their feet? Let’s take a closer look at how you can magically improve your credit score today!

Usage problem uncovered.

Usage loans are very common in this business because many investors have a usage problem. The usage problem is created when investors excessively use their personal credit cards or personal loans to pay for their business expenses. This will affect you everywhere you go, whether it’s a flip project or you’re applying for a DSCR loan. Here at The Cash Flow Company we deal a lot with credit score struggles, fix and flip properties, and rental properties. No matter what the project is, having good credit is the key to getting the funding you need.

Credit score struggles.

If you are above 30% usage on your credit cards, your  score  will begin to decrease. This percentage is also referred to as the credit utilization rate. Investors who come in with a 640 or a 660 credit score often need to increase their score to 700. In doing so, they will be able to get either the LTV or rate they need to create cash flow. Nowadays rates are still in the 7’s or 8’s. That is why it is so important to get the best rate you can in order to maximize both your LTV and cash flow. 

How can a private loan help your credit?

One quick way to increase your credit score is to use a 911 loan. This loan is used to pay down credit card debt by using private money. These private funds are secured with a property to ensure the repayment of the loan. Once the credit cards are taken off of the credit report and the new statements cycle, credit scores will then reflect the changes. 

Where do you get started?

The first thing that you need to do is run a simulation. We ask investors to do a simulation on MyFico, Credit Karma, or Experian to see how paying off a credit card will impact their credit score. We have seen people max out their credit cards at $3K, while others are maxed out at $175K. These maxed out credit cards are not only impacting their credit scores, but their DTI as well. To clarify, DTI stands for the debt to income ratio. 

For example: A client in Texas just went through a simulation and his credit score went up 100 points. He went from 653 to over 753 by simply paying off the credit cards that he had maxed out. 

High credit score means higher cash flow.

In the following example we are going to look at how credit scores can drastically impact your ability to qualify for a DSCR loan. Not only will a lower credit score increase your interest rate, but it will decrease the cash flow for your property as well. Remember, hurdle number one is making sure that both you and your property qualify for the loan. By taking 2 to 4 weeks to get the 911 usage loan, you will be able to not only buy the property, but you can then refinance it later on. This method also provides the opportunity for you to move over any remaining balances over to a business credit card.

Loan Type Property LTV of 80% Net Rent
DSCR $312K $250K $1,800
Credit Score Interest Rate Monthly Payment Can it Qualify?
680 8.8% $1,976 No
760 7.45% $1,740 Yes

Learn this magic trick today! 

Business credit cards are an excellent way to separate business expenses from your personal accounts. These credit cards are easy to get and work the same as personal credit cards. By moving expenses over to business credit cards, it wipes the charges off of your personal credit completely. As a result, your credit score, cash flow, and ability to qualify will all increase. 

We are here to help!

Here at The Cash Flow Company we are here to help you get on the right path. Do you need to get your credit card debt off of your personal credit report? Contact us today to find out more about usage loans and how they can set you up for long term financing. Just to clarify, the usage loan is a private loan that does not show up on your credit for 60 to 90 days and won’t affect your DTI. Now is the time to set yourself up for success! 

Watch our most recent video Help! I Can’t Get a DSCR Loan Because of My Credit to find out more.

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This Makes a HUGE Impact on Your Credit Score

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Business Owners: This Makes a HUGE Impact on Your Credit Score

Many business owners wonder what will make the biggest impact on their credit score. The answer is using personal credit for business expenses! If you max out your personal credit card with business expenses and fail to make payments on time, then it will show up on your credit report. In order to be successful, it is imperative that you maintain your credit score. Those who do will be able to get approved for business credit cards and loans in the future. How can you prevent any further strain on your credit score? Let’s take a closer look. 

What is the credit utilization rate and how does it affect you?

The credit utilization rate is the sum of your balances divided by the amount that you were approved for. If you are above 20% of your credit utilization rate, it will lower your credit score. For example, if you have a $10K personal credit card and use $3K of it, then it will decrease your credit score. However, if you have a $5K business credit card and use $4800, your credit score will not be impacted. In many instances, your credit score will by using a business credit card as opposed to a personal credit card.

Business credit cards are a key to success.

Once you get into business credit cards, the banks will start offering you business loans as well. I receive offers almost weekly that are offering a $30K business loan or a term loan. Investors are always finding ways to bring money into their business so that they aren’t in a cash crunch. Part of that is using credit cards for down payments and escrow. By just going through one extra step to apply for business credit cards, you can continue to use credit cards without affecting your score.

Buying a property has never been easier!

A business credit card is a tool that will not only help you pay for business expenses, but it can also be used to purchase a property. There are services out there who can help you use your credit card to purchase a property as long as things are set up correctly. For example, if you have a $10K limit on a business credit card and want to buy a property for $5K, they can take it directly off of the credit card. That $5K can be used to pay the title company for the earnest money or down payment. In doing so, you can put the property under contract easily by just using a business credit card. Once the property is refinanced or sold, the money can be paid back. 

Create the flexibility you need to succeed! 

Business credit cards provide the flexibility you need to be successful.. The most important benefit to using them is that they will not impact your credit score if you run up the balances. Almost every investor runs up their balance. You are not alone! Don’t fall for the deceptive leverage of personal credit cards. By using more than 20%, it will not only affect your credit score, but it will also cost you more. 

Don’t let your business expenses affect your personal life.

While investors are trying to use the leverage that they have available, using personal credit just makes it harder. If you are a business owner who is doing flips and rental using your personal credit cards, it will affect your personal life. For example, if your wife wants to get a new car or you need a HELOC, you may not have the credit score or DTI that you need to qualify. Just to clarify, DTI is your debt to income ratio.The lenders who will be lending you money are going to see that you have $75K in credit cards and you will have to account for that in your income.

Make the change today!

Business credit cards make life easier for you in so many ways! Protect your credit score by separating business expenses from personal expenses today. Don’t make things harder on yourself! Those who make the switch to business credit cards will create the flexibility needed for business expenses, while maintaining your credit for future loans or projects.

Contact us today to find out more about business credit cards and how you can improve your credit score today!

Watch our most recent video to discover why This Makes a HUGE Impact on Your Credit Score.

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70% of REI Investors Lose Money Because of THIS

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70% of REI Investors Lose Money Because of THIS

I have been in real estate investing for 23 years. Within that time I’ve seen 70% of new investors lose money within the first year. Many of them purchase real estate courses for $10K to $30K in hopes of learning all of the tips and tricks. Blinded by the promise of instant success, many people don’t take the time to set themselves up properly. On the other hand, those who take things at a slower pace and follow a few simple steps, will have a better chance of winning. How can you avoid becoming part of the 70% of investors who lose money? Let’s take a closer look.

Simple steps to success.

First and foremost the most important thing that you need to focus on as a new real estate investor is taking simple steps. This includes looking at properties, finding people who can send properties to you, and securing the money you need. Here at The Cash Flow Company we recommend that you look at 200 properties, talk to 100 wholesalers, and talk to 100 lenders before you jump in to your first purchase. Those who are focused can get everything set up in a matter of weeks. While others may take longer to get set up because they can only set aside a few hours a day. By taking the time to consume and understand everything, you will set yourself up for success. 

Make money instead of lose money! 

Some seminars can be beneficial to real estate investing, however, that is not normally the case. Many people become wrapped up in the idea of investing without understanding all of the factors that come into play. While it’s not rocket science, you do need to work hard to set yourself up for success. Those who are new to real estate investing often get talked into taking courses. These average $10K to $30K and focus on how to fix and flip quickly and easily. Not only do you have to pay for it using credit cards, but you are encouraged to use their credit cards as well. This get rich quick method causes many to lose steam quickly because they are not talking to people in the business or looking at enough properties. While this method may work for some, it doesn’t work for most.

Take your time 

Surprisingly 70%  of REI investors lose money because they dive in before going through the simple steps. In doing so, investors often lose $20K to $30K, which in turn prevents them from purchasing their next property. Successful real estate investors ensure that they have 1 to 3 good deals before moving forward in purchasing more properties. Just to clarify, a good deal is one that makes money! Real estate investing is all about making money so that you can live the life you want!

Contact us today to learn more about the simple steps you need to take to be successful in real estate investing. 

Watch our most recent video 70% of REI Investors Lose Money Because of THIS to discover how to get on the right path to success.

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#1 Mistake Made by Small Businesses and Real Estate Investors

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#1 Mistake Made by Small Businesses and Real Estate Investors

What is the #1 mistake made by small business and real estate investors? The answer is not applying for and using business credit cards for business expenses. They are the most important thing and the simplest thing that all investors can do for both their business, as well as their personal lives. While personal credit cards are easy to use, it makes life more complicated as you get into investing.  It doesn’t matter if you are doing flips or rentals, you need to make the switch today!

We Want To Help You!

Our goal is to make it as simple as possible for business owners to succeed. Real estate investing is reliant on leverage or funding for growth and generational wealth. We just want to make the process easier for you. 

Stop Using Personal Credit Cards. 

70% to 80% of people we see are using personal credit cards for business expenses. By putting business charges on your personal credit, it drives down your credit score and makes everything harder. Personal credit cards are used to complete repairs, as well as to grow your business. However, using them on a regular basis will drive down your credit score quickly. This problem even affects investors who are applying for loans. They are either being denied, or required to put more money down because of their credit score.

Where Do You Start?

One of the easiest things to do is to stop using personal credit cards and instead get into simple business credit cards. The best part about business credit cards is that they don’t impact your credit scores. We are talking about the same credit cards you use now, the only difference is that they are in your business name. In making this simple switch, it then allows you to take your business expenses and transfer them onto your business credit card. This not only removes those charges from your credit report, but it also gives you peace of mind that your business expenses will no longer affect your DTI. In the end, the better the credit score, the better the funding you can get to create wealth.

Increase Your Credit Score Quickly.

Here at the Cash Flow Company, we provide a usage loan or 911 loan that will help get your credit score back on track. We use a private non-reporting loan to pay off or down your credit card balances.  With little or no balances showing up on your credit report the next time your credit card cycles, your score increases.  With usage counting for 30% of your score, this will have a huge impact on your new score. We receive calls daily from people who say that they need to increase their score 18 to 20 points. These investors are charged an additional 10% to 20% down, or even being denied loans because of their score. To be clear, this loan is for those who have high balances but don’t have late payments. Is a usage loan right for you? Give us a call today to find out more. 

Open A Business Credit Card Today!

Everyone has credit cards and uses them on a regular basis, so why not make the switch over to business credit cards? Unfortunately, investors ht a detour and go down the path of applying for corporate credit. This is a tiered system that can take months or even years to build. Business credit cards on the other hand can be applied for right away. If you have really good credit and you’re starting a business, then you can get a business credit card right now. Chase, American Express, for example, will give you somewhere to start, as long as you are set up and running like a real business. The more you use the business credit cards, the greater your available credit, and the more benefits you will receive. This includes Southwest, United, Marriott, and so much more. 

Make The Change Today And Succeed Tomorrow!

Both credit scores and leverage are important to create wealth. We want to make sure you do it right! If you have a real business and operate as a real business, then you need to apply for business credit cards today! Investors are hesitant when they are approved for a few thousand to get started. However, when lenders see that you’re using it and paying it down in chunks, they will quickly raise your limits.It may take 2 to 6 months to move everything over, it just depends on where you’re at. Making the change now will make your life so much easier as you grow your business.

Watch our most recent video to find out more about #1 Mistake Made by Small Businesses and Real Estate Investors

Do you have more questions about setting your business correctly? Do you need additional information about raising your credit scores? Contact us today!

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