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How To Build Real Estate Business Credit

The Importance of Building Business Credit

             Guide to Setting Up LLCs for Real Estate Investors

  Aside from the tangible benefits that come with forming an LLC, the simple     process of setting one up makes this decision appealing to most investors.   Here are the steps to setting up a real estate investment LLC:

  • File articles of incorporation with the state in which you will purchase investment property.
  • Keep the LLC in good standing by having a Registered Agent in each state where you form an LLC.
  • Pay the appropriate business formation fees — these vary by state, but are typically minimal compared to the benefits of forming your LLC.  More...
What’s so important about developing business credit for rental property investors? Before talking about gains and returns, it is smart to point out the risk reducing and wealth preservation benefits that separating personal and business finances can offer. The separation of business (investment) credit and assets from everyday personal credit offers extra protection against a variety of risks. It can help individuals keep income coming in and investment assets safe when personal crises creep up. Conversely, personal income and holdings can be reserved when investments run into issues. This becomes even more important when partners are involved in buy-and-hold real estate.

One of the initial steps in this separation is incorporating or forming some type of legal entity to invest under, such as an LLC. Even for the passive real estate investor starting out with a property or two, LLCs can yield additional wealth preservation and tax benefits.

Unsecured Real Estate Lines of Credit provide you the cash you need to do your deals, and much faster, cheaper and more profitable than hard money loans.

As you know in real estate, timing is everything. Funds for renovation, closing costs, holding costs, rehabbing or cash acquisitions at auctions, an Unsecured Real Estate Credit Line is one of the most sought-after funding tools for real estate investors.  Providing you the cash you need to do your deals and much cheaper than hard money.

 Rates and Terms

You can transfer funds online, access funds by phone, or write a check against the line amount. With this kind of flexibility, access to cash for down payments, closing costs, acquisitions, buying at auctions, purchasing raw land and rehab funds are available at the stroke of a pen.

It’s no wonder why this type of credit line is in such high demand. Imagine not having to worry about missing out on deals because you don’t have the cash.

Flexible financing for investment property, closing flexible loans fast, with a streamlined,

simple application process, reliable funding, and predictable pricing.

You can transfer funds online, access funds by phone,

or write a check against the line of credit amount.

With this kind of flexibility, access to cash for down payments, acquisitions and rehabs for residential or commercial real estate, are available to you at all times, unlike traditional real estate investment loans .

*Our Lines of Credit are credit score driven, co-signers are welcome. Don't miss out on deals because you don’t have the cash. Not sure of your credit score?

You can check your credit score here Credit Check Total.

Flexible Unsecured Real Estate Lines of Credit and Rehab Flip Loans

with fast closings, streamlined application process,

reliable funding, and predictable pricing.

No delay's, no closings with No Upfront Fees.

​​"We are a full-service accounting firm exclusively working with real estate investors, developers, brokers, and professionals helping them save an average of $67,000 per year in taxes, through various strategies. We also consult in the capacity to help business owners become & stay profitable by growing revenues, reducing expenses and ultimately increasing profits."

Key Takeaways

It is never too late to build business credit, as long as you are willing to take the right steps and act proactively.
A real estate business line of credit, whether you realize it or not, is one of the best tools investors have access to.
If you know how to get a line of credit for real estate investing, you are already ahead of the pack.

Why should all real estate investors want to build business credit? Better yet, how can they establish a dependable real estate business line of credit?

Buy-and-hold real estate investors have traditionally relied on personal credit, and, more recently, paying cash for income properties. These types of credit, for all intents and purposes, have served many investors well. However, they have also left many coming up short on their goals and full potential. Nevertheless, there are those that have been building and flexing their business credit, with great results. So how does business credit work for real estate investors, and what are the tangible advantages?

Why Should I Have A Real Estate Business Line Of Credit?

Below you will find some of the most important reasons every business should build a real estate business line of credit:

  • Reduce Risk
  • Build Value
  • Scale Your Business
  • Access To Funding

Brian Sweeney, MBA, CFP® 

Financing your real estate investments with  Unsecured Real Estate Lines of Credit will help build business credit lines and enable you to accomplish 4 very important things:

  • Protect your personal credit
  • Set up and build your business credit reports
  • Establish 4-5 new banking relationships for your business
  • Gain access to funding to do your real estate deals

Call: (800) 613-3450 

We have what you need for real estate investments including  Unsecured Real Estate Lines of Credit & Rehab Flip Loans.​​

by Than Merrill

Fortune Builders, Inc.

Premier Real Estate Investing Education & Business Development

  • Credit Line Amounts: $20,000 - $300,000   

  • Interest rates: 0% For the first 6-12 months, then as low as 5% interest rate. 

  • Credit Scores under 680:  Must have co-signer.   

  • Credit Scores 680+ :  No co-signer required.        

  • Income:  No tax statement or pay stubs, we only verify cash flow.  ​$10,000. gross monthly income required.

  • Collateral: None              

  • Pre-Approval Time: 1 Business Day​

  • Funding: 3 Business Days

 Unsecured Real Estate Credit Lines ​​

The Perks of Building a Valuable Business

While establishing a business entity to invest through and building business credit can have very powerful short-term advantages, it is a lot bigger than that. If you are going to register a business and invest in an organized manner, why not allow value to be built in your business simultaneously? In addition to brand building, it’s pretty obvious an entity with a couple million dollars in established credit lines is going to be more attractive to business buyers and other investors than those that don’t. Not only may properties be traded more easily, but the business entity could be sold for a substantial sum too.

Easy Access to Financing

While some investors have complained about access to credit in recent years, others have found business and investment property financing plentiful. This is primarily due to new regulations and uncertainty about risks of residential consumer lending. Many lenders now exclusively offer financing to businesses and for commercial purposes. Real estate investors have been the big winners, as their entities are collateralized by brick and mortar institutions. 

There are many options available: hard money, private money, commercial mortgage loans, business lines of credit, non-recourse loans, and store and contractor credit. This money and credit can be used to acquire income producing properties, improve and maintain them, and re-market them for sale.

With true commercial financing, investors are not signing personal guarantees, and qualification is generally based upon the business’ credit rating and income capacity. Among the other benefits of this type of leverage: access to significantly larger sums of investment and working capital, lower risk, high ROIs, and faster wealth building.