The Titanium Vault hosted by RJ Bates III

Steve Wible: The Power of Business Credit

November 15, 2019 Episode 99
The Titanium Vault hosted by RJ Bates III
Steve Wible: The Power of Business Credit
Chapters
The Titanium Vault hosted by RJ Bates III
Steve Wible: The Power of Business Credit
Nov 15, 2019 Episode 99
Steve Wible
Show Notes Transcript

Steve Wible is a marine corps veteran with a deep background in real estate sales, flipping and property management. He previously owned over 300 rental properties and acquired those in only two years. He is now the Director of Business Development for Credit Suite, Inc. Credit Suite is the recognized leader in teaching business owners how to use business credit that is not tied to your personal social security number. To learn more about Steve Wible and Credit Suite visit http://www.creditsuite.com or email at info@creditsuite.com



Speaker 1:
0:01
Listen up real estate investors, entrepreneurs, and agents. You're in the right place. Unlocking the secrets to real estate investing and entrepreneurship. Welcome there. That titanium vault hosted by RJ Batesville. Third, here's RJ.
Speaker 2:
0:26
Hey guys, welcome to the titanium vault. I'm your host RJ Bates. Today I'm sitting down with Steve Weibel. How are you doing buddy? I'm good, RJ, man. Good to see you again. Yeah, so I'm, I'm excited to bring you on the show today. I know we're going to talk about a little bit real estate investing, but we're mainly going to talk about business credit and how real estate investors and entrepreneurs can use that to leverage themselves better. Uh, take a quick second to kind of briefly introduce yourself and tell everybody what it is you do. Well, my name's Steve Waibel. I'm a a, the head of business development here at credit suite. And I say here, I'm actually in my home today, unfortunately ends in the background, right? But what we do is we show business owners how to get credit that's not tied to them personally. And it's a big deal.
Speaker 2:
1:10
It's actually a game changer. Yeah, it is. I'm, I'm, I, I told you before and I'm going to tell everybody who's listening. I, I'm super excited because I want to learn how to do this myself. Uh, this is something that my, my partners and I have been talking about for probably about the last 12 months. And, and it's because we're, we're building our rental portfolios and every time we want to go out and get loans or find any sort of leverage, everything is tied back to our personal credit. They want to pour credit scores and every time they do that, the credit score dips and it goes lower. And it's just this constant game that really no one can explain to us. You know what I mean? As much as you Google and you try to figure out how to do this, it's just a like constant, you know, we'll just don't use your credit, but then you have to use your credit to go get loans.
Speaker 2:
2:00
So I'm super excited, uh, to learn about business credit and how to remove my social security from everything. So, uh, before we get into the business, uh, business credit side of things, um, you have previously or do own 300 plus rental properties. So let's talk about that because majority of our listeners are real estate investors. So how have you come up with acquiring those properties and how much business credit did you use? I'm in acquiring those. That's two great questions, RJ. So I no longer own those problems. Okay. FYI. Uh, I started in real estate. I sold my printing company in 1999, uh, looking for something to do young age. I'm only 53 now. And my brother said, Hey, let's buy some rental properties. I was in Camden, New Jersey. Yeah. So I looked at what he was doing and said, yeah, this is great, but let's scale it. You've got like 10, let's say my first deal, I bought 35 first had no, I had no,
Speaker 3:
3:00
I had no idea how I was going to be able, I had some money but not enough to buy 35 properties. But I've got them on a contract. Ah, found a hard money lender to lend me the money. And then sold half of them within a week that covered the entire loan. No. Now I have 18 properties that I own now. Right. So that's how, that was our first foray into the business. And at one point I was in home Depot buying supplies like we all are doing. Right. Right. And I was offered some credit and I said, well, you just said earlier, which is, no, no, no, I got to protect my credit. I don't know. I need my, I need to keep my personal credit so that it's a great deal. Comes along, I can take advantage of it. And the customer service rep said, no, no, no, no, no, I'm talking about credit in the business name.
Speaker 3:
3:39
I went, Whoa, never heard of it. I mean, I knew about it from my printing industry days, but that was just what vendors that I already was doing business with. So it really, it never occurred to me that big stores like home Depot and Lowe's and, uh, you know, vehicle find all that was available. So anyhow, uh, what I did is I took advantage of that. And when, as you know, when you get a hard money loan, they'll lend you money to buy the property. They'll, they'll escrow money for repairs. Well I, what I did is I used home Depot's credit to repair the properties and then when I took the draws, I use that money for down payments on my next property. Yup. So I know from zero to 300 within two years. Wow. That's leveraging that. And every time I sold a property, what I would do is I would, I would buy three flip to keep one.
Speaker 3:
4:23
There you go. So that way I was paying off my debt, moving on to the next one. And at some point my hard money company was like, you're my only customer. I don't know if that's good. I don't know if that's good or bad, but anyway. Well you know, you bring up the escrowing of the rehab funds and you know, I, I just want to touch base on that because that can be a cashflow nightmare for rehabbers and it's something that is really not talked about very frequently amongst podcasts and trying to scale up your company. It's really not an issue if you're doing one or two flips at a time. I mean, it can be, but it's really not an issue if you're completing the work within, you know, a reasonable amount of time. But you know, when you're talking about scaling up and you know you're going to zero to 300 properties in 24 months when you were doing a significant amount of properties at one time, and, and yeah, it can be a cashflow nightmare, especially when you're talking about having to go by three, four, five, $6,000 worth of flooring or cabinets or countertops for multiple properties.
Speaker 3:
5:27
So leveraging that and finding a way to have that business line of credit or, or just credit in general a that wasn't attached to it or your social security number is massive. So when you were at home Depot and they said, okay, have you done business credit before? Did they even pull your like credit score or was it strictly based off of the company? Well, here's, here's where I got lucky because it doesn't work this way anymore. You know, times have changed. Um, they just basically, I was spending 30 to 40,000 every single month with them. I mean, month in, month out. So I think the, the, and I was, you know, I, you know how we all do this, we use Lowe's against home Depot pricing. And I was going, well, I was thinking about going to Lowe's. Oh, they didn't want to hear that.
Speaker 3:
6:13
Right? So I was fortunate to get it the wrong way. The right way is you have to have a certain amount of trade lines reporting and then you apply for the business credit and you get approved. I learned that after I would, okay. Uh, I started working for this company and ironically, I ran into this company in Florida 1800 miles away from where I lived. Uh, heard what they were teaching was like, Whoa, I need to learn more of this because I know what it did for me. I imagine if I really knew what I was talking about, right. Uh, [inaudible] what people don't mention and you did in the beginning is, look, you're, you know, when you use your credit cards, utilization goes up, what's your score do right down? Well, with business credit, that doesn't happen at all. So you can use as much credit as possible.
Speaker 3:
6:55
In other words, leverage other people's money without ever affecting you personally. And then more importantly, God forbid, something like, I don't know that a thing that came up happened to know a, that probably doesn't affect many people. It affected me, but not many people got affected. Um, if that happens, you're clean, right? You're personally clean. So it has a dual purpose. One to protect your personal social too. If things do go wrong and look, we don't plan for things to go wrong, but we better not fail to plan. Right? Right. Uh, so it allowed me, like I, if I had my pictures, I could show you, I have my credit score so protected that when I had an opportunity to buy a 32 unit apartment complex and I have five minutes to make a decision, uh, it was a tax sale certificate 300 300,000. I was able to do that.
Speaker 3:
7:39
I was just able to call my bank. I need 300,000 here's what I needed for it. Done, approved, awesome. Because my credit was so good. And then I turned and flipped that for 1.1 million. Wow. So it's not about that deal, but it's about keeping your credit. Right. Exactly. So let's, let's dive into this for the, for the listeners, first and foremost, what is business credit? What is the best way to describe that to people? Okay, so business credit is credit that is tied to your EIN, not to your social. Okay. So if you have an LLC or a C Corp or an S Corp, not a sole proprietorship. Sole proprietorship is basically you. Okay. You can get credit in the company name now. It's not something that's magic. It doesn't happen overnight. It takes time. You have to build a profile. Just like when you turned 18 and got your first credit card, I'm sure it wasn't a $10,000 discover was your percent interest, right?
Speaker 3:
8:30
You have to build that profile. Same thing with your business. You build a profile. The good news is business credit scores are based strictly on how you pay your bills, not on utilization, not on the inquiries, not on what type of new credit you have or old credit do you pay your bills. So let's use an example there. Say I go to home Depot using your example and they give me $1,000 in credit. I go immediately and buy $1,000 worth of materials. You're telling me the best way for me to build up my business credit score. It's how frequently or how how I paid back, right? So does it make sense for media immediately pay it right back? Well, you've got to have time for it to report. Okay. Like I've seen people pay in two days. I'm like, you're paying cash at that point.
Speaker 3:
9:19
That's not gonna report as credit. Gotcha. But I'm a big fan of using other people's money until the very last minute. Um, so once you get to like you would start off, home Depot has a division that gives net 30 accounts, which doesn't sound exciting to people, but if you're flipping properties quick, 30 days is plenty of time. Right? Or if you have an issue with having enough cash, and I have seen this many times having enough cash to do that. One third one, half of that rehab before the, the hard money company gives you a draw. How many times have you heard of people running out of cash and they can't finish it right now they have to bring in a partner. Now they've given up the equity. Uh, well if you can utilize a home Depot or a Lowe's or a visa or MasterCard to pay a contractor, okay, yeah.
Speaker 3:
10:01
Get your cash. That way you're not bringing in partners. So what happens is that they bill you and the bill is due, let's say in 30 days, pay it in 20 God that was going to report is as paid paid as agreed as how it's reported. And then what'll happen is as your score goes up and your next level of credit that you move into, they start recommending you for higher and higher limits. Where with personal credit, it takes a long time to build up to a high level, takes a long time to get to those twenty thousand twenty five thousand hour limits. Right? This is credit. I've seen people get $50,000 in credit in 90 days. Wow. So, okay, the first thing that you said was, is we have to go, we have to start a profile, right? So how do we do that? How do we, where do we go to start in as business profile to start getting credit for this score?
Speaker 3:
10:47
Well, the first thing we're going to have to look at is we look at the fundability of a company and when I talk about fundability, I'm really talking about credibility. So in today's day and age, lenders are looking for fraud. That's what they think they have to do. They use artificial intelligence to look for fraud. So if you apply for credit with my company through my my website, or even manually, we're going to run through a fraud check and we're going to check, does your company address match with the IRS and secretary of state? Do you have a legitimate phone number or using a cell phone? Do you have a legitimate email address? I love when I see people have a, my business@gmail.com unfortunately sounds good and not legitimate. Right? Right. It needs to be info@mybusiness.com gotcha. A phone number, you can't use your cell phone.
Speaker 3:
11:32
You can't use Google. You need a legitimate business phone number. That doesn't mean you have to put a phone on the wall, but you can get something called a virtual phone number, which Google is similar, but you need to own it, so you have to go to somebody like RingCentral or grasshopper or one of those paper play type phones. Right. Okay. And they're going to list, you're going to list it with the national full one database. I don't know how old you are, but back in my day, you used to pick up the phone dial four one one and asked for Joe's pizza on main street. Right. Unfortunately, most people don't realize that database still exists. If you have a legitimate business, you're listed with the national four one database and when the artificial intelligence checks and you're not there, it's an automatic denial. Automatic. That's funny.
Speaker 3:
12:15
I did not realize that that still exists and I do remember from my childhood that yes. Yeah, exactly. Um, so these are just a couple things that I'm touching base on. There are 225 points. Wow. Yeah, it's insane. Right? Right. This is why most people fail at it and this is why most people give up really soon. And also like credit suite is a great company because we teach people step by step exactly how to get there. And then once you're ready, we say, okay, these companies are the ones you want to apply for for credit. Because they report, they organically report to your dun and Bradstreet in your experience in your Equifax business profiles. Right now, I have to stop here, dun and Bradstreet, because most people have heard of dun, Bradstreet, right? And they have to get their DUNS number. They have to go to Dunn, Bradstreet and get that.
Speaker 3:
12:59
And here's what happens. You apply for the number. They say, yeah, it'll be about 30 days. And they immediately send you to their telemarketing division and they call you daily. They're the greatest telemarketers in the world, and they convince you you'll never get credit unless you buy their $1,200 program. And then if you don't buy it, they'll step it down to their four 95 program, right? But the reality is they're required by law to give it to you, to give you the John's number. Uh, the problem with done a grassroots program is that if you stopped paying them, in other words, next year, it's time to renew. If you don't pay them, all those trade lines that they've added for you are gone. She needed to deal with legitimate companies. For example, home Depot reports to experience dun and Bradstreet. So you need to know that and it has to be organic because even if you don't use that trade line every month, even if it shows zero, if you've used it at least once, it always says paid up, paid as agreed, paid as agreed.
Speaker 3:
13:55
Well, as you're adding more and more trade lines, you become a stronger and stronger profile, just like your personal credit. Makes sense. Yup. So this is what we teach people and it's a step by step process and it's not fast. If you're looking for a shortcut, we'd already have it. It's, it's a six to nine month process to get to where everybody really wants to be. And I'm talking about things like vehicle financing. Anybody who's driving around looking at properties using their own personal car in their name is out of their minds. Yeah. So it needs to be in the company name. So for example, I have a car that is leased under my company name that should be reporting back to as a trade liner or I should be getting business credit for that. Right? Correct. You shouldn't have signed for it personally. If you had enough trade lines reporting, you could go to somebody like ally auto financing, all Y, and if you have enough trade lines, they'll approve you for vehicle financing that you don't sign for at all. Wow. So imagine having, like in my case I had five
Speaker 2:
14:52
companies, so I had pickup trucks, I had gas cards, I had, you know, you name it. If you can keep as much of that operational debt, I call it the day to day things in the company name. It just keeps your personal credit clean, right? So the one that great deal comes up, the opportunities there for you, and it sounds small to people, but when you really look at your day to day operational items, you spend money on, how many times are you tapping your Mac or are you using your Mac card? Right? Your personal visa card. I'd be willing to bet it's thousands per month. Oh yeah, per month. Well, take that and remove that from you and put it on the business. Guess what? Your, your score is not going up and down. Well, your cash flows were even worse. Your cash flows not going up and down.
Speaker 2:
15:31
Right. Well, and also I think one of the biggest, at least in my world and the people that I taught to, one of the biggest trends over the past couple of years is the credit cards that you're using to receive the travel rewards. So you're going out and you're rehabbing a house and you're using this credit card and you're putting that $10,000 a month on your rehabs, on this credit card. So you can get reward points for travel. So you can essentially travel for free. Is that something that you can still obtain and get within the business credit by those credit cards that give you these were rewards? Well, the amount of money that you're spending, it depends on, I get what you're saying, but to me that's giving up your personal credit score for travel. Exactly. No. If I asked you that question, take away what you're doing.
Speaker 2:
16:22
Hey listen, I'll give you free travel if you let me wreck your credit score every other month. And that's kinda how it feels. I'm not gonna lie. I mean, that's kind of what it feels like. I mean, I've gotten some free travel to different events and it's like, yeah, but go look at my credit score. I mean, it's a, it's, it's bumpier than a rollercoaster. And in our business, I may, especially as real estate investors, like when we go to banks and we try to get approved for loans and even some hard money lenders want to know our credit scores. And so that's pretty intense when, you know, we go get a deal and it's like, Hey, this is going to be a great, uh, you know, six flights that we're going to keep forever. And I go to refinance it. And suddenly the bank's like, Hey, your, your debt ratio is too high, so we're not gonna approve you for a loan. When it's like, all I did was go put two rehabs, material costs on a credit card. This is intense. Like you're, you're literally altering the future of my family and my business because of a mythical number, because I utilize the, the credit that you allowed me to have. I mean, how crazy is that? You know what? I'm saying is that, look in the end, we as small business owners, mic, we, I'm talking about 99% of business owners. We were never exposed to this business business credit building blueprint. But I can tell you this
Speaker 3:
17:51
besides Amazon, because they've overtaken him. Who's the number one retailer in the world?
Speaker 2:
17:57
Uh, I do not know that. Yes, you do. It's Walmart. Okay, well that's what I was going to guess. It's too late now. I should've just said it.
Speaker 3:
18:04
Listen, Walmart's entire business plan is based on business credit. Okay. Do you buy something off the shelf? They haven't paid for that yet. Interesting. They get credit for that. They're entirely, Sam Walton didn't sign for trucks right now. Obviously they became an institutional bar once you get a certain number over 50 million, but you had to get there. Every major CFO in the country knows about business credit and exactly how to utilize it. But we're not taught that. I mean, look, this is terrible. I was taught how to do a checkbook in high school. I bet you they're not teaching that now. Oh, that are not right. Right, right. Um, and accounting and whatnot. This is, you know, we'd like to say it's an insider secret, but it's been around forever. Just nobody talks about it cause we're so used to it. It's so ingrained in our heads when we see an application that says, so scary number we just filled in, right. Well people don't realize you consume it, that application without anything there not, don't ever put any other number in there. That's breaking federal law. Yeah. But you, you can submit an application with no social security number on it. They have no choice but to run your business credit at that point. And business credit is reported based on your address. So they just run a through D and B automatically pulls the NFL and gives it to them. Experience automatically pulls the info and gives it to them.
Speaker 2:
19:18
Gotcha. So I want to circle back to one thing that you said earlier about dun and Bradstreet though. You said that when you, when you go to apply, they're going to ask you to pay some money and then they're eventually going to lower you down to this four 95. Did we pay the four 95 is that what we need to pay? You don't pay a penny. You don't pay a penny. But then you said 12 months later,
Speaker 3:
19:39
no. Okay. Let me explain. They're going to convince you that if you don't buy their business credit building program, you'll never get credit. What they're doing is they're taking existing
Speaker 3:
19:48
ah, vendors of yours and they're going to place them on. So you're paying them and then you have to do all the work. You have to say, here's one of my vendors, here's another one. Like let's say a contractor. Okay. Sounds like a great idea. But the problem is that those active trade lines become dead trade lines if you don't renew the next year. Gotcha. So don't pay them a penny. It's not worth it. First of all, you're only building up your DMV profile. What about your experience? By the way, banks look at experience, real cash credit. They look at experience. So you need to know exactly who to use, who actually reports organically, who actually will do it, whether you pay DMV or not, whether you pay Experian or not. You don't need to pay DMV
Speaker 2:
20:29
anything
Speaker 3:
20:30
ever
Speaker 2:
20:30
because the, the, the other trade lines are automatically gonna report to BNB. Right. Or whoever they report to. So you're gonna yeah.
Speaker 3:
20:40
Your three majors are DNB, Experian and Equifax. Uh, with experience you're going to have what's called your bin number, your business identification number. So they have credit profiles. They're all automatically gone to report. Like, I'll give you an example company called quill.com let's just might want to write that down. Q U I L l.com. They are like a tiny little Amazon. They sell office supplies, paper towels, you name it. 1 million products. They're the one of the beginning vendors to give you business credits. Yeah, no, you have to make sure your business is set up credibly, but they will give you credit and then you'll use the credit. You'll pay the bill and they'll automatically report automatically if you never use them again. It's going to continue to report a zero balance, but you have X amount of available credit. Gotcha. You don't need to pay for that.
Speaker 3:
21:29
Is there anything that we need to do to set up with experience? Uh, it just, it should automatically happen. If not, they can reach out to me@infoatcreditsuite.com. I can get them the link they need. Uh, but it's, it's fairly easy. Dun and Bradstreet, they can go to D N b.com the Leonard David the word end and then be like boy.com just apply for your free DUNS number. Don't buy any other products. Yeah, and I'm not, I'm not gonna lie. I did this way back when, I think I stumbled on some forum that talks about business credit. And so I went onto dnb.com and I, and I applied and you're not joking man. A every, every real estate investor that does cold calling should just go apply at DMV. Even this doesn't resonate with you just to experience what their marketing team does and, and try to mirror were lit lists, lists that they have.
Speaker 3:
22:23
Cause, I mean it does get to the point where you just literally have to tell them like stop calling me and they still don't stop calling you at. Well my favorite line that the way you get it, cause they will delay your number for 30 days trying to, for an opportunity to sell you is to tell them, Hey, I'm broke. I don't even plan on doing business for the next 12 months. I'm just getting my number now. And you know what? That's it. And the conversation. That's funny. That's funny. So let's talk about utilizing business credit to obtain loans. Is that something that can happen outside of just like lines of trade lines? Yes. Credit, yes. But I'm going to tell you, I know where you're going with this and take it from me and experience when you, when you go for a business loan, I told you it's 225 points.
Speaker 3:
23:03
They're going to look at it in the, those 225 points is also your personal credit. Okay. Your cashflow, your business credit profile, all the credibility things we talked about. So what it will do, it will change the rates you get, the amount alone you get. Uh, I'll give you an example. I'm going to give you our example. We did a test on our own company. Now we have what's called a high risk company cause we had the word credit in our name. And by the way, to your listeners, uh, real estate is considered high risk, okay? So if they are thinking about starting a new company, go with something vanilla like Oak tree enterprises. All right means nothing. That can be the main company. You can have all these other companies below it. But like I had five-star property management of freedom, real estate enterprises.
Speaker 3:
23:47
I had all this, I had no idea about this hot high risk industry stuff, right? So just keep that in mind. Anyhow, so we had a difficult time. We ended up doing a what's called revenue financing, which even real estate investors can get that if they have enough Reynolds, they can actually borrow money against that rent, right? But the interest rates stupid. The interest rate is just out of control. So we took a $70,000 loan. We had to pay back, I don't know, seven or eight, $9,000 a month. Uh, and then we fixed all the issues we had to fix as far as, you know, the credibility section, what I'm talking about, this 225 points. And when applied for a, a, a SBA loan, got $350,000 and the payment was only three grand a month. So we got five times the amount of money and one third the payment.
Speaker 3:
24:35
So if you don't think those credibility issues matter, they're huge, huge. Uh, I had a client that went through our program. We've got turned down for an SBA loan for 100,000, for 50,000, choose me, turned down, went through our program, went back six months later, applied, got an automatic hundred thousand dollars approval, nothing changed. His credit score didn't change, his cashflow hadn't changed. The only thing that changed was what we helped him do on our side. So you're out at, at, so back to this, uh, does anybody's listening out there? You are never going to buy a property on business credit cause you're still stuck in that Fannie Mae, Freddie Mac box. They're going to need somebody to sign personally. But once you get multiple properties and you want to go for a business loan on them, which is what I did, they are going to look at your business credit.
Speaker 3:
25:20
It will change your rate, it will dictate the type of loan you get. Right? So you're saying you could use the loan basically for like a portfolio loan, like a refinance of them. Exactly. Gotcha. But they're still gonna look at you personally and they're still going to have you personally guarantee it. 100%. That's always going to happen. So yeah, I mean, you're pretty much always going to have to personally guarantee the, the money on real estate no matter what exactly except with certain hard money loans. But, but in general, that's going to be the case because look, they want to take the property if you don't pay. Right? Right. So, um, until you get what become what they call an institutional borrower. Like for example, uh, I did a 187 units apartment complex they use, we use tax credits and bonds. There is all kinds of other things going on.
Speaker 3:
26:05
But this was a monster deal, right? This was a $5 million deal with another $10 million back end on it. I don't want to dive too deep into this because I don't want to confuse people, right? But I just want to be clear. I have investors call me all the time. I want to buy a fourplex. Can I use business credits? No, you cannot. You want to use business credit for your day to day operational stuff to protect your personal credit so you can buy that fourplex, right? Well and it also helps with your cash flow, so you're not having, you're not using your own cash to buy things that are basically going to be reimbursed to you at some point in time anyways. So you, instead of using a personal credit card
Speaker 2:
26:44
and hurting your personal credit. So when you do need to utilize your personal credit to get the loans from the banks [inaudible] it's squeaky clean at that point in time. Not exactly. Not tied up with $10,000 worth of credit card debt that was covering flooring or like you brought up office supplies. My main computers and you know these types of days that we have to have is companies. How about a $40,000 F two 50 exactly. Yeah. I mean seriously, people don't think about it cause they look at it as their vehicle. But look my my trucks that I buy houses on it, right? So why would I want that in my name? Right? Then you bring up a really good point on that because so often we have our vehicles and our names and, and that's showing up as a debt, a liability that we have on our personal credit.
Speaker 2:
27:36
Right, exactly. And so it's just, again, it's just making you more of a risk and you, you bring up a really good point on, you know, real estate investing is a high risk industry in the eyes of lenders and banks. Right. Every time I go sit down with a small bank, they always look at me and they're very skiddish at first because when they're looking at it, they're seeing lots of income and lots of expenses coming in and out and there they're seeing high turnover properties and they want to ask me like, what happens if you can't turn these properties? How are you going to sustain this? These are questions that they have and it's all going back to the fact that they're kind of, it's just their bread to date that this is a very high risk industry. So it is interesting that you brought that up.
Speaker 2:
28:29
Did that is a fact. You brought up that, you know, your name had credit in it and that made it high risk. Um, mine has investments in it. Would that make it a immediately high risk? Absolutely. Absolutely. It's so funny. Nobody out there says that, right? Nope. You don't think about that when you're, it's just like, okay, who are we? All right, I want to be titanium investments. That's what I'm going to call my company. You don't think about it at that point in time that you know down the road when this actually works and you try to figure it out. Now all of a sudden your high risk because you put that in your name. But if I just called it RJ Bates enterprises, I wouldn't be high risk anymore. Nope, you would not. That's crazy. It is that, listen, I have freedom real estate enterprises and if you break that down, it was F R E E I was free from my job. Right? That's awesome. Um, you know, five-star property management obviously just went for the five stars. So I, everything I did was wrong, right? I mean everything I did was wrong. Uh, but you also have to decide whether you need that from a marketing point of view. You look credit suite, we really need that name. Right? And from a marketing point, people have to understand what we do. But as a real estate investor, who cares? So let's talk about suite a little
Speaker 3:
29:42
bit here. Walk me through how that process works. You've brought up that you guys kind of walk us through the, the checklist, the 200 plus items that we need to do. Um, is it, is it kind of a, a mentorship program where you're holding our hand through the process, say, okay, this is the next step that you need to take to building business credit? Is that kind of what it's like? That's exactly what it's like what we've done and our COO and our CEO just put this together perfectly. We have a program that you get your own login and it's a step by step, almost like a paint by numbers, right? Right. Like, do you remember those days were not that old? Uh, it's a step by step process and then you get advisors that holds your hand through the process. These are advisors that you can call, I don't care if it's five days a week.
Speaker 3:
30:27
We don't limit people. Uh, most coaching programs, as you know, will limit people to the number of calls per week, per month, whatever. We have unlimited. Do you call? As many times you have a problem, you get turned down for something because we'll look at it and tell you why you were turned down all we, we'd give you the full underwriting criteria for it. Every single person in our program, we tell you what home Depot needs to approve you. We tell you what Lowe's needs to approve you. We tell you what that fleet MasterCard's going to ask for, what they're going to look at to get you approved. Nice. It's really cool and it's a step by step process and it takes time. It's, you know, you don't flip a house in three hours while let your wholesaler. Um, so it's going to take time.
Speaker 3:
31:06
Typically, I see it takes six to nine months. Okay. Uh, and there's always a hurdle or two to overcome. Usually it's something minor. I mean, we had one couple that they didn't get it, they got turned down at their bank for $100,000 line of credit came to us. We showed them what they have wrong and they've [inaudible] got it over half a million dollars in loans since it was one thing. There's the secretary of state at a a mismatch. It was literally something as dumb as that or worse. I've seen this. Don't use a PO box for your business address. Don't ever use a PO box. I get it for tenants. You want them to mail a rent to a PO box. I totally get that. Um, but your business should be registered at an address. Yeah. IRS should have the same emeritus. All your marketing should have that address in all the [inaudible].
Speaker 3:
31:55
You can have a PO box just for your tenants and Elise. That's it. There you go. See that's really good advice. I mentioned to you earlier that we were just moving offices, right? So now would not be a very good time for me to start trying to do this because I have things that I need to tighten up on my end. Right? I need to go make sure the secretary of state's going to have my new address. I need to make sure that everything lines up before I start this process. Very good tip. So, um, if you don't mind sharing, what does that look like financially? Is it a monthly cost, annual cost? How does it, we have multiple programs on our core program, which is the core of our business. Obviously. Uh, that program sells for five 97 a month for seven months. You get five years. Uh,
Speaker 2:
32:40
you get a whole finance financing to help you, including hard money lenders. Do you have lines of credit, revenue financing, uh, and if you can't afford to do them or if you want a discount, we'll offer you a one time pay of 29, 97 one time. You get a discount of about the 12 or $1,300. But we have other programs too. So don't let that discourage you if you're listening out there and go, Whoa, that's a lot of money. Right. Just reach out to us. If you don't mind. Can I get the email? Yeah, absolutely. Just go to info@creditsuite.com. It's Sui T. E a. We have other programs that involve a little less hand holding, but you get access to the whole thing that's going to cost you significantly less. So if that's something you feel like you need and if you want to ask for me personally at info at [inaudible] dot com that's fine.
Speaker 2:
33:23
They'll forward it to me and I'll, and I'll personally respond and I'll make sure to put all that in the show notes below. Um, before we wrap up, do you have any kind of final thoughts about business credit or how to properly utilize credit suite or anything along those lines before we wrap up the show? Yeah, I would say that, look, even if you don't work with us [inaudible] figure it out, right? This is something you need to do. Look, we didn't invent it, we didn't create it. We just organize it and sped it up. [inaudible] if, if you feel like, look, I don't want to do, I want to do this, but I want to do it with anybody else, that's fine. It's going to take you three to four years, but do it because it will change the game for you. We just talked about it.
Speaker 2:
34:05
Just not having that debt in your name personally will change everything. It may make the difference between you making 200 grand and a half a million dollars a year. Exactly. So for all my listeners, I'm going to share a little bit of a story here as we wrap up. So once you have an established podcast, there are companies out there that actually send you emails with these pages with guests. This is Steve's page right here. This comes from a company that says, Hey, I have a great guest and I would love to get him on the titanium vault. So the first time I got the email about Steve, I briefly glanced over it and I said, why would I want to have a business credit guy on a real estate investing podcast that doesn't make any sense? And I deleted it. And then the second email came through and she added a little caveat.
Speaker 2:
34:58
She said he owned 300 rental properties. Well that made my dumb ass read it. And so then I actually started thinking about this and I read his page here and this is also due to my partners coming to me and saying, Hey RJ, we need to be utilizing business credit. Yeah, this is something we need to be doing. Is this something they have previously done in some of their other companies? And so I found it important enough today to bring Steve on here for you guys to understand what this is and do utilize it within your companies. Um, I think that this is something that is so vital when we're, we talk about on here building generational wealth and all of these different things, passive income, these, these catch phrases that as real estate investors we use, this is a tool in your tool belt that the majority of people are ignoring.
Speaker 2:
35:52
And like you said, it's not a, it's not a secret anybody can find out about it, but no, very few people are actually doing it. And I love your story about Walmart, how they're probably, uh, the number one person utilizing this to their advantage. Um, what a great analogy there as business owners and entrepreneurs, why would we not want to follow those footsteps? So Steve, thank you so much for sharing this, um, credit suite.com info at credit suite. If you're interested. Um, if you enjoyed today's episode and you're listening on iTunes, please give us a five star review. If you don't want to give us a five star review, go give your four, three or two star review to someone else, not me. I only want five star reviews. And if you're watching on YouTube, give us a thumbs up and subscribe. All right guys, that's our show for today. We'll see you all next week. Thank you so much, Steve. Thank you.
Speaker 1:
36:49
Thanks so much for listening to the titanium vault with your host, RJ Banes. The third for more info and to stay up to date, visit www.podcast.thetitaniumvault.comandonfacebook.com/their titanium vault. If you enjoyed the episode, please rate and review and we'll catch you next time on a timetable involved.
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