How to Use Unsecured Business Credit to Finance Your Investments

How Did You Get Started in the World of Real Estate Finance?

Back in 2007, I was introduced to mortgage brokering by a gentleman named David Candle. At the time, I was working as a mortgage broker.

Then came the recession of 2008. Banks were struggling internally because loan-to-value ratios were dropping, which meant clients had to bring in additional cash for their down payments. Sometimes that difference was as much as 10% to 30%. To help our clients bridge that gap, we began exploring the use of business credit cards.

Of course, setting up high-limit business credit cards requires the right approach. At that time, the process was relatively simple. You could call the bank, and they would transfer the entire credit card balance into your bank account for a $75 ACH fee. Today, the process involves cash advances, but back then it was a very different landscape.

Unsecured Business Credit vs. Traditional Financing

Traditional financing is always tied to the asset. It’s asset-based lending. The property acts as the collateral, and the loan is secured against the investment property.

Unsecured credit is issued based on credit history. It’s not attached to the asset. Any business can qualify for a business credit card.

• Business credit cards provide you with one additional benefit that is often overlooked: cashback. Let’s say you spend $100,000 on a house renovation. You can earn 1%–2% cashback on the amount you are spending for business purposes.

• Another benefit is the opportunity for a chargeback. Let’s say a contractor doesn’t finish the job as promised, or there are quality issues. You can request a chargeback on the transaction. The contractor then has to prove to the bank that they did the job correctly before they can apply for the recharge.

There are some services that might not accept credit cards. In that case, you can use third-party payment services to transfer money into your account for payment.

A business credit card is a powerful option for real estate investors who need cash quickly and efficiently. We have helped over 30,000 people secure more than $2 billion in unsecured business credit.

Using Unsecured Credit to Acquire or Renovate a Property

Unsecured credit cards can finance many types of real estate investments. You can do rehabs, flips, and wholesaling. Some people use unsecured credit as an in-between fund when they don’t have enough capital to complete the rehab. Funding renovations is the best example because you can access funds immediately.

Business credit cards are issued only to people with top credit scores. They are issued against your personal tax identification number. It’s a personally granted loan, but it is not reported on your personal credit report.

If something happens to the business or to the loan, you are not personally responsible for it. We build large amounts of aggregate funding with business credit cards for our clients. You just need a clean credit score, and we can set up your business entity and TIN.

Myths About Unsecured Business Credit Cards

One big misconception is that business credit cards are only for big corporations. New applicants often apply for loans with different requirements, and that is the reason for denial.

There is a difference between a business credit card and a corporate credit card. Corporate credit goes beyond business credit. It is for corporations that are doing millions of dollars in deals.

First, you must have a business credit card. Build some history, make payments, and then you can start applying for a corporate credit card.

Credit Card Stacking

Credit card stacking can be used to expand the pool of funds available to your investment business. Most banks will offer a 0% business credit card. The 0% rate could apply during the first year. At the end of the first year, you can apply for a new card and merge it with the previous one to continue receiving the 0% benefit.

What’s the Mindset and Team Structure Behind the Success of Fund&Grow?

We have 60 team members collaborating at Fund&Grow. We believe you must take care of your employees before your clients can be taken care of. Other than the team, you need a reliable system, which for us is our software.

Most companies use GoHighLevel and Salesforce, but we invested in our own custom-built software. Everyone on the team (including our affiliates and clients) uses this software, where they can access transparent data and see the entire process.

For the mindset, I am a firm believer in the Law of Attraction, and the best teacher on this subject is Esther Hicks. I was a blue-collar employee wanting to create something for myself. I bought the business from Dave and ended up building something entirely new.

If it wasn’t for the Law of Attraction and guiding my thoughts, I would have never started something so different. We also mess up at times, but the focus is always on helping more people.

What’s Next for You on a Personal and Professional Journey?

I want to help another 50,000 or 100,000 people receive billions of dollars in business credit funding. Just imagine the ripple effect of this achievement across America. I am excited about this goal.

This year, I became active as the CEO of Fund & Grow. Interesting things are happening. We are interacting with more affiliates. I would like to reach another 100,000 clients but at a much faster pace. We helped 30,000 clients in the last 10 years. Now I believe we can move at a better pace because we have improved systems in place.