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Build Business Credit FAST - No Personal Guarantee Needed - YouTube
Channel: The Kwak Brothers
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if you have terrible credit and you're
wanting to get into real estate
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investing stick around in this video I'm
going to show you how to get around that
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hey what's up everybody this is Sam Kwak
one of the Kwak Brothers real estate
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investor and in this video I'm going to
show you guys how to get around having
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terrible credit by building business
credit for real estate investing now
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before we do be sure to hit the
subscribe button as well as hit the bow
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icon so that you get notified in our
future video releases now if you have
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terrible personal credit and you're
wanting to get into real estate
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investing there is a way around it other
than just owner financing there is a
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concept called business credit which is
entirely separate from your personal
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credit and a lot of people don't know
about business credit because it's not
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mainstream yet it is fairly new and
there's not a whole lot of conversation
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that takes place about business credit
so in this video I'm gonna show you guys
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how to establish business credit the
most fast way possible so that you can
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start getting business credit cards
business loans without even using
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personal guarantee now what's really
nice about business credit like I said
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is it's separate from your personal
credit so what you do on your business
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credit side won't affect you on the
personal credit side whatever you do on
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the personal credit side doesn't
necessarily affect your business credit
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side so you can keep those two credit
profile differently and I'm gonna show
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you guys how to do that now when it
comes to your personal credit you got
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five big factors that affects your
personal credit score specifically your
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FICO score the first one being your
payment history are you paying on time
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your utilization how much of your credit
are you using new credit credit mix as
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well as your overall age of your credit
so those are the big five factors that
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drive your personal credit now when it
comes to business credit the main big
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factor is are you paying on time okay so
a lot of people think well I don't want
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to max out my business credit card it's
gonna hurt my business card well not
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necessarily what will hurt your business
credit is not paying on time and late on
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your payments so what's separate what's
different with your business credit is
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you don't have necessarily those big
five what really matters in your
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business credit side is are you paying
on time
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now of course to take advantage of
getting a business credit is that you
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have to have a legitimate business you
can't just you know have a fake business
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and build a fake business credit you
know it doesn't work that way so you
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gotta have a real business whether you
have a landscaping business a internet
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marketing business roasted investment
business it has to be a business that
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you actually have and you're actually
running and you're actually making money
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from it the next thing you're gonna have
to have when building a business credit
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is have a business website a business
phone number and an optional of fast
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number now when it comes to your
business website it has to reflect
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exactly what you do so if you own a
landscaping business you got obviously
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this website has to be about landscaping
if you own an internet marketing
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business you have to highlight the fact
that you do have an internet marketing
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business on your website now as far as
your phone number you can have a
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separate phone number such as a Google
Voice number or a sideline number or if
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you have a legitimate office number make
sure you have a separate phone number
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that is not your personal cell phone
number now this is an optional and it
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does help is having a fax number and
this is optional but it does help and it
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gives you an extra credibility point
knowing that you actually have a
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legitimate fast number for your business
now quick note on the phone number is
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that you do have to register the phone
number with four one one so once you
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establish your business phone and phone
line that is separate from your personal
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phone line be sure you go to four one
one and register your phone number and
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your company name so that it'll be on
the public directory so you got your
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phone number your website and your FAFSA
Murr established the next step to do is
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get a Duns number at dun and bradstreet
number Donna Bradstreet is a company
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it's an organization that reports your
business credit to the other creditors
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it's very similar to Equifax Experian
and TransUnion except dun and Bradstreet
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specifically focuses on business so you
need to get a Duns number which is kind
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of like a social security number that's
unique to your business and getting this
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number is absolutely free although you
could be misled to pay for an expedited
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service or other third-party services
that you need to pay for you do not need
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to pay for it done Duns numbers are free
you can get it for free it takes about
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two to three weeks to establish and get
a number deliver to you by email so make
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sure you get the number
not skip this step it's very important
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that you have a Duns number before we
move to the next step
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so once you have a Duns number your EIN
your website phone over all established
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and ready to go the next thing you're
gonna want to do is start establishing
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the net 30 accounts now net 30 is simply
a concept where you purchase something
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and you pay back for that purchase
within 30 days so let's say you went and
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bought a bunch of paper from a company
and if they give you a net 30 account
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you have 30 days to pay for those papers
otherwise you'll be late and of course
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you're gonna go and attempt to collect
from yes so what you're gonna want to do
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is start establishing these accounts and
you want at least three to five of these
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accounts being reported on your dun &
bradstreet credit report and you want to
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have at least three months of reporting
to see a paid X score of 80 so we'll pay
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that score is your business credit score
and it is specific to dun & bradstreet
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so you want to have at least 80 in your
paid X score and to establish that you
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gotta have at least three months of
payment history with your three to five
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net 30 accounts now with the net 30
count so you can get those through
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different companies such as Uline quill
there are other companies that will
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offer in that 30 now when you go and
shop around for these net 30 counts and
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when you go in and research creditors be
sure you call them ask him hey do you
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report your net 30 accounts and payment
to dun & bradstreet now if they don't
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report there's no point of establish
that net 30 account so work with a
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merchant /a a store or retail store that
does report your net 30 into dun &
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bradstreet so that you guys will get
that pay that score up and going now
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once you have your paid a score of 80 or
higher you can start going after the
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bigger fish in terms of merchants and
vendors and creditors so you can start
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going after gas cards certain retail
stores certain national chain that you
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can go after to get store specific cards
so what I did is I wouldn't establish
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three to five net 30 counts and then
what I remember is I went and got a
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credit card from different gas stations
that are local to me and they do report
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to
you know different credit bureaus
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especially dun & bradstreet and then
after I started establishing credit with
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the gas cards and gas store gas station
specific cards then I started getting
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store specific cards from Staples Lowe's
places like Office Depot office max and
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once I have those established again
there's there's a pattern to this you're
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gonna want them reporting for at least
three months okay and then you're gonna
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escalate to the more the bigger and
mainstream change such as Best Buy
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Walmart some of the more bigger chains
that you can tackle on all the way to
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the point if you continue this trend and
established business credit you know one
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foot on top of the other you're gonna
find yourself to be able to qualify for
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bigger business credit cards with you
know banks you're gonna be able to get
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business not a credit even auto loans
that don't require personal guarantee
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from you so once you have your business
credit established this way you can
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start tackling and bigger credit cards
pickle alone higher living credit cards
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this is the benefit this is the power of
establishing business credit a lot of
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times if you do it the right way you can
get away establishing business credit
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and accounts without your personal
guarantee or without using your personal
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credit now I'm gonna give you guys a
brief list of what not to do when
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building business credit the first thing
is do not rush the process don't go off
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and skip steps don't go after the big
credit card companies right off the bat
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follow those steps right get your net 30
accounts have it established have your
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paid F score of 80 in an Escalade you
know step by step don't go and skip all
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the way to the end because once you
messed it up there's no read to you
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there's no restart there's no
quote-unquote respawn back to step 1 you
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can't fix your mistake so be sure to
follow the steps don't rush the process
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because once you do there's no do-over
so be sure to follow steps now the
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another thing you should not be doing is
buying shelf corporation which I believe
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to be is legal and fraudulent you should
not be doing it now what shelf
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corporations are it's basically people
getting corporations and doing nothing
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with it waiting couple years into the
corporation ages and then start building
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business
on top of it or selling it to another
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individual for them to build business
credit now obviously this is fraudulent
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this is legal and the reason why people
do this is to show that the company
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their business the corporation has been
around for a longer period of time and
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really you know it hasn't been it's not
been active it's been dormant it hasn't
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been doing anything obviously this will
be lying to the creditors as well as the
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banks and lenders so you should not be
doing this you should be starting your
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business credit organically the right
way a legal way ethically and you don't
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want it again don't rush the process
don't try to take shortcuts this is not
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the best way to do it so don't go off
and buy a shelf corporation I think it's
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terrible and I think it's straight-up
illegal so you should not be doing it
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now along the process if you sense
anything that's shady or if you get any
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other advice that tells you hey you
should be doing this and in your gut
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feeling it feels weird it's not ethical
it's not you know it doesn't sound legal
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then chances are it's not now of course
you do want to do your research and you
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want to make sure you understand the law
and the process but if it sounds shady
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to you and if you're feeling you're
taking shortcut the wrong way or an
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unethical way then don't do it
take the pause that you need and
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research what's going on before you make
the decision to move forward or to not
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move forward so don't rush a process
don't buy shelf corporations if it
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sounds shady chances are it is so to
give you a recap and a summary of how to
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build your business credit the first
step is get your EIN your employer
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identification number next establish
your separate business phone line your
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website as well as an optional fast
number get your Duns number establish
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wait two to three weeks to get your free
Duns number get your net 30 accounts
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established for three months of payment
history and start escalating into bigger
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retail stores and creditors to the point
where you can now attack all the biggest
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fish you know different bank cards auto
loans high limit line of credit those
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things are definitely possible through
building business credit so if you found
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this video to be valuable be sure to hit
the subscribe button as well as hit the
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bell icon to get notified in our future
videos and the next video that you guys
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must must watch is how to buy your first
rental property without using your own
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money or credit that videos right here
you click on that video watch that video
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and I'll see you guys in the next video
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