"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."
Unsecured Real Estate Lines of 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...
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.
Apply Here for a Free Loan Quote Today!
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.
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
Use for down payments, closing costs, renovation, holding costs, rehabbing,
paying contractors, buying material for rehabs or cash acquisitions at auctions.
Available to you at all times, unlike traditional real estate investment loans .
Don't miss out on deals because you don’t have the cash.
→No cost to you until you have access to your funds.
→Can work for real estate acquisitions, rehab projects, buying materials, paying contractors.. etc
→Doesn’t hurt your credit to learn your options and most clients have HIGHER scores after funding.
Flexible unsecured financing for investment property.
Closing flexible loans fast, with a streamlined, simple application process,
reliable funding and predictable pricing with no upfront fees.