$1 Million Credit Line Program

What does $1 Million Credit Line Program include?

1. Your Corporation or LLC will be pre-approved by lending

2. institutions for up to $1 million in secured credit to use for real estate first mortgages.  Before the loan is made, the lender will verify that the property value is comparable to the loan amount and that the risk to the lender is minimized by approved underwriting before the loan is complete.

3. You will participate in a 4 day real estate buying tour.  This is especially useful for people who have already attended seminars and read books on real estate.  You will not have to worry about research at this point as we have already identified properties that are great investment opportunities.  On the tour, you will have the chance to inspect, bid, and purchase multiple properties with your pre-approved financing.

4. For six months you will have a corporate credit coach to answer your questions. Because building additional credit sources will be important for continued growth, your coach will teach you how to use, tailor, and build additional credit for your needs.

5. After you’ve built your business credit, you will be able to obtain mortgages under your LLC name to increase your investment portfolio.  These mortgages will be for your business account, not your personal account.

6. Obtain financing that doesn’t require your personal guarantee by getting 100% and 90% loan to value financing for commercial properties.

How does this program work?           

1. Each real estate transaction is handled on a deal by deal basis.  Once the lender has verified the value of the property and has secured the loan and sufficient loan safety, the money will be wired to an escrow account, up to $1 million, for the purchase of the property.

2. As part of our corporate credit coaching program, credit lines are made available for whatever specific needs your company has.  For instance, you can tailor your credit needs for business equipment, automobiles and other items.

3. Obtain real estate financing for residential, commercial, land or other real estate as well as equipment and secured property.

4. Learn how to prepare winning offers using corporate credit and no cash down payments to purchase property.    

Does my corporation or LLC need to have a Payex score or Dun & Bradstreet number?

Yes. We offer a 6 month support program that includes tailoring additional credit.  You need a D & B number and Paydex score for this.  

Can I do anything I want with the million dollars?  

No.  You will only be able to buy real estate.  The lender will verify the actual value of the property by doing a real estate appraisal and will then determine the ratio value they are willing to lend you based on that.  Typically the ratio is between 65%-75%.

Can I use business credit or do I have to borrow money using my personal credit?

Yes. The lender will use 100% of your business credit when you apply for a loan.  However, based on the safety of the loan, there may be times when the lender might want to combine company assets to help boost your borrowing power. This is subject to the safety of the loan.

Can I use my corporate credit to buy a company or LLC from you?

No. This program assumes you already have a corporation or LLC in place.  If you don’t, we can help you get started by walking you through the process of setting one up.  Please note that this process is not part of the program

Is there a way I can take cash out when getting financing?

This program doesn’t allow cash out financing.  However, during the real estate tour you will learn how to put cash back in your pocket when you close on a property.  Please note, however, that you can’t this is not money you can pocket yourself.

Who is going to approve the financing for real estate and other purchases?

The lender will approve all loans and give the terms of each loan once your business credit is built and you have identified a property that you want to purchase.

Do you provide real estate investments for me that I can purchase using the corporate credit?

Yes, this is the reason for the buying tour. We have identified investment properties, put together local management companies, local contractors, appraisers and anything else you’ll need to start investing in real estate.

What kind of real estate is available?

You’ll learn how to be residential, single family, mutli-family, commercial, foreclosures, raw land, single family, foreclosures, developments, and rehab properties.  You’ll also learn how to calculate the associated materials and labor costs. All of this is taught in the training course.

Can I obtain 100% financing without taking cash out of my pocket?

Lenders do not like to take a bigger risk than they have to.  Therefore, you’ll typically only be able to get financing for 65%-75% of the value of the property.  However, we can help you find unsecured business lines of credit to finance the rest of it, which may equal the full 100% needed to finance the property.

What if I need more than $1 million credit?  Can I get more?

There are programs available for larger commercial projects or business funding needs. 

What are the interest rates?

There are several factors that go into determining the interest rate, such as the property itself, the location, the state, and more.  Typically, the interest rate will be between 8% and 14%.

Is refinancing available for properties that I already own?

Yes, this is available. Once you’ve established your business credit, we would prefer that you refinance any properties you own in the LLC name so that they no longer are connected to your personal credit report.

Will my personal credit score be involved?

It doesn’t have to be.  The underwriter may ask for this information, but not necessarily for the purpose of qualifying you financially for the loan.  They might want this information to verify the integrity of you and your company.  It won’t matter if the CEO of the company or the general manager has poor personal credit.  However, if there is evidence of fraud or a judgment against the CEO or general manager for fraud, the lender may question the integrity of the loan and the corporation or LLC’s ability to pay it back.