Why Avoiding This ONE MISTAKE Could Be The Key To Your Success As A Real Estate Entrepreneur

Let's start with our prime directive as a RECFH Real Estate Entrepreneurs.

"To Create An 8-figure Real Estate Portfolio With NO Cash, NO Credit and NOT Ever Having to Qualify for a Mortgage."

This happens to be both the privilege and the advantage that attracted me to this career in the first place. Because I can remember the times like it was yesterday, I ran across properties that I knew were good deals but I didn't even have the small amount of money it took to put them under contract.

And many times when I did finally find the money it was too late.

I can also remember the time when I got financing to purchase and rehab a property but no one told me that I had to come up with $16,000 upfront to complete the first phase of repairs - after which the lender would reimburse me.  Guess what?

You guessed right. I didn't have the money! There's nothing like a little desperation to drive home a life lesson. These, among others, are mistakes that could have been avoided with one move on the chessboard. And by the way, I was able to get my hands on the $16,000 but I'm ashamed to say how much it ended up costing me.

The problem for most of us is that we get so caught up in playing real estate checkers (the short game) - that we forget or worse, it doesn't even occur to us that we have to play real estate chess (the long game) as well. The ONE MISTAKE you want to avoid that could be the key to your success as a Real Estate Entrepreneur is choosing NOT BUILDING BUSINESS CREDIT!

Some Interesting Facts You Should Know...

1. You can have damaged or no personal credit at all and still build business credit.

2. You can build business credit completely separate from your personal social security number.

3. You can build business credit with absolutely NO Personal Guarantee.

4. You can build business credit even if your business entity is brand new.

5. You should be using business entities in real estate for asset protection, estate planning, and tax planning purposes.

Things like earnest money and 1st phase rehab/construction costs are reimbursable, meaning they can be recaptured during or before the project even begins. Therefore, if at all possible, you should avoid the costlier forms of leveraging capital to cover them. And there is no way that these "soft costs" should stop you from getting your projects started and completed.

By definition, a Real Estate Entrepreneur is an individual skilled at procuring, organizing and structuring resources into cash flow projects with optimal risk and profit potential for ALL parties involved. In case you didn't realize it, "that includes YOU!'

Building business credit not only helps you position yourself to handle soft costs, but it will also serve to help expedite your transition to more and bigger projects. But most importantly, you will need to guide the members of your collaboration team on building their own business credit and the most effective means of equipping yourself to accomplish this task is executing and experiencing the process yourself!

IMPORTANT NOTE: The more capital your collaboration team has access to - the more capital YOU have access to for cash flow projects!

Plainly put, there is no excuse for you, as a Real Estate Entrepreneur, not to choose to BUILD BUSINESS CREDIT!

Good Hunting!