How To Get Business Funding With Bad Credit

How to get business funding with bad credit. It is possible in this video. I'm going to talk about how to get not only just good credit. I'm going to talk about how to get investment cards versus credit cards. At the end of the video. I'm going to tell you a story about Chris. He got over six figures and investment cards in funding and had horrible credit. Stay tuned. You can do this. So three things we're going to talk about specifically. We're going to talk about OPM. Everyone's been talking about OPM. Let's really break that down, which is other people's money. Then we're going to talk about OPC, which is other people's credit. Something that I have taught people to do for years. A lot of people don't like it. There's some techniques to it. I'm going to share with you. And then finally, I'm going to talk about some funding sources that are so available as you know, specifically during this pandemic. There are so many sources. I say right now, here's what I say all the time during the pandemic. You have to be completely asleep to not become a millionaire. I'm making 18 to 24 month millionaires in real estate. This is not difficult. A lot of you just don't know how a lot of the old techniques aren't working. So get a pen and paper. We got a lot to talk about. Okay, let's jump in. Let's talk about OPM. So other people's money. What does that mean? It can come in a lot of forms. Hard money lending in real estate is traditional. Now, we're in the most volatile economy. I think most people have ever lived through. I mean 2008, 9 and 10 looks like a walk in the park compared to living through this economy that has been handed to us and we're not going to get into politics but because of what's going on economically, it has affected every business owner and you know, those of you that have been watching me, those of you are new to me. I have a heart and soul for the entrepreneur no matter what the business is. So what is happening is the volatility that is going on right now is insane. Now, let's go back to traditional sources, other people's money. I'm going to say it this way. You mean you got to go to the banks. The banks have hardly any interest rates. You're getting the lowest rates. Yes, it's traditional. Some of you I know say, oh Laurel, don't tell me to go to the banks. You don't have to but I had to say it. It is other people's money. It's not yours. You got to have some good credit, a little better credit. We'll get that and we'll blend that to the OPC in just a moment. So let's stay on OPM. You have bad credit. What do you do? Other people's money is really going to be borrowed to you based on your project. So if you have bad credit, so what other assets do I have? Well, hopefully you have a lot of experience. For those of you that are beginners watching this, you're going to have to partner up. I call it field partners. I partnered up way in the beginning 1999 when I became a millionaire. I partnered with a lot of other folks. They had years, 20 years of experience in real estate. So yes, I didn't get a hundred percent of the project. I only got a small slice of the project, but I got a small slice of a lot of projects. So it's called the blended return. So I had a blend across a lot of projects, but I have their experience to reduce the risk and I didn't have just one project. So if one project failed and have a hundred percent of a problem, I mean, I was across a lot of projects. So OPM is everywhere. You just have to get the project, put it out into, you know, your community. So then you got to say, well, where do I go find it? If you're in real estate, real estate investment associations, they are meeting online, Chambers of Commerce, just local people, go to your bank, go to your brokers in town, go to lenders in town and just explain you have bad credit. You have a great project. You need some financing. Now, the downside of OPM is the cost of the money and the terms of the money. So a lot of times people are going to want very short term. They're going to want six months, 12 months, 18 months. If you can get 36 months in a hard money loan, good luck and the rates are going to be higher. The rates are going to be minimum. They're going to be 10%. I mean, if you can get it at eight, you are really, really doing well. Most people are paying 10. A lot of places still 12, 14. I know one place is still, they're still getting really bad credit and not a lot of experience. You might have to go as high as 16, 18%. So when you do the terms for this, again, cost of money, terms of the money, make sure if you don't have somebody to paper it, the first place I would send you that's going to be simple is to a title company. And again, I'm talking to a lot of you who have real estate as the backing for this money and a lot of your title companies, they'll offer that service. They might charge you a little bit, but it's cheaper than a lawyer and having to go out and get all this documentation set up. So number one, go for OPM. Number two, go for OPC. You say, well, how do you do OPC? So a lot of my students that don't have good credit, right? And I get them from all walks of life. I mean, just recently got a new client who went through bankruptcy. They had to go through some foreclosure because of a divorce in the family. So all sorts of issues happen. I don't have any judgment about it. It is what it is. And the typical way that a lot of my clients will set this up is you do all the work, you do all the money, they will bring their credit. So then you can go to a bank. You can get a traditional loan. You can get, you know, the twos and three percents. You say, well, that's, you know, I don't want to go back to a bank. I mean, there's your, you have to weigh the differences between paying a lot for the money and then you're on your own or using someone's credit, ideally with a lot of experience and then the big key for using other people's credit is making sure that mortgage is paid and their credit is protected at all times. So putting things on autopay, making sure that, you know, nothing is missed. There's nothing though to get leaned against the property or their credit will get, you know, dismantled in some way because of the project. So as long as you have in writing a really clear process for the protection of their credit, I've seen people do that all day for a nice percent of the project. If they're bringing money, they might charge a fee for the, for the money, right? They might charge an interest rate. If they're only bringing credit, you got to be out there thinking, well, how much do you give them for this? Minimum 20, 25%. Sometimes you might have to go as high as 50% just to get the deal done. Now, we talked about OPM. We talked about OPC. I'm going to go one more place, which is using IRA money and then using OPC in combination with it. It's another way that a lot of my folks with bad credit can get a very creative deal done. Takes a little more work to get it all done, but you can find someone who has a self-directed IRA and they're sitting on a lot of cash. And again, it's just another way to bring in the money, bring in the OPC, do a combination. So the more you spend time out here on our YouTube channel, and by the way, if you have not subscribed, every day I come live, click on that link, subscribe to my channel, click the little bell for the notifications because every day I'm going to be talking about different things. Some of these, especially if you're new, these concepts, you're like, whoo, like this is way too much. It's not. It's just different. I always say my work is not difficult. It's just different and it's extremely creative in the alternative space. And if you want a deal, you got to get a deal done. So I want to just switch gears just a moment because I've been talking about how do you get funding with bad credit for real estate? These same, same techniques are absolutely available to those of you who want to be more on the, say, Shark Tank side where you want to buy an auto body shop or you want to buy a hair salon or a nail salon. Getting funding in this economy right now is so available to any of you that have some effort. Really what we're finding more in this economy is less people with initiative and effort than actually the ability to get the deals done. So again, OPM, OPC can be used in business transactions just as fast as they can be used in real estate transactions. Now, let's go to the third and big one. How do you get money in this economy? So the volatility, I mean, it started April 2020, right? Really March is when it all really launched and the first reaction was you don't have to pay your mortgage. You don't have to pay your credit cards. You can put everything on hold. Well, the truth is that's tangled a lot of people up really bad. In fact, if you did a forbearance on your credit card, you did some forbearance on your mortgages. It's following and trailing inside your credit. So you're probably going to have to get someone. I have an amazing woman. We'll talk about that at the end that can clean all this stuff up for you, but it will be on your credit report. Now, the banks probably didn't tell you that you probably weren't told that by your mortgage provider back to the money when this all launched and everybody was told not to pay stuff immediately right behind it the SBA the EIDL opened up all these loans. I mean for a while you could do the PPP loan, which is about payroll if you had it, but right now those EIDL loans are still available. In fact, just recently Biden increased to over 2 million per company 2 million per company and the duration of those for some people that I know have gotten those loans. There's no payment for up to 24 months and I know some people listening. So how did you get that originally is going to be a year then a year became another year and a half. So it's actually two and a half years. I know some clients who got two and a half year extension. No credit. Then if you want to go into a 30 year fixed, it's only going to cost you between two and a half to I think the highest I've seen is maybe 3.8%. So that is really cheap money, right? So those of you out there, you know, you don't have money. You don't have credit. The government's giving you free money and you got to say, well, how do I get it? Well, you have to become incorporated. You got to have a P&L. You got to have a business plan. Yes, there's some, you know criteria to it that you cannot if you have any initiative in this economy to want to grow a company buy some real estate get into cryptocurrency get into whatever you want to create wealth right now. The variables are better than they've ever been resources to get money obviously the bank right you want to go back there credit cards. There's funding that you can get in fact. I have a lot of clients that get a hundred hundred fifty thousand dollars. What looks like a credit card. It's 0% financing for up to 21 months. It's available all over the place folks the resource that I use a lot. They have 28 banks that will end to them in all sorts of forms and fashion and you don't have to have great credit. So there's so many places and the way I want you thinking about these credit cards because it comes in a credit card is you're not going to go out and blow it and spend it think about it like an investment card. I said that the beginning of the video an investment card is something that you're going to use to invest in that's going to have an ROI a rate of return. You're actually going to have some you know produce you're going to have a producing asset out of it. You're not going to go buy a car. You're not going to go buy a big screen TV. You're not going to go buy some you know music equipment as a guy go to buy a bunch of music equipment thinking he's going to do this whole music thing when said you $70,000 never got it off the ground should never have used the money that way should use the money to actually go out and get some marketing done get some sales done get some gigs books and misused it. So I promise it will help guide you on how to spend for investing and spend for growth. It's a very different principle in a different process than just spending because you want a great lifestyle. This is all money that has to be paid back. So you've got to think what are you what are you putting your money into invest that you actually get that rate of return back so you can pay everything back and then while you're doing it do very specific pay principles, which is in another video so you can go look up another video of mine of how do you increase and clean up your credit? I've got tons of video YouTube videos on how do you clean up your credit, but you do need to handle that and those of you that want to get more sophisticated. I have other videos on how to increase your corporate credit. So for every company that you own you should have the ability to increase your credit. So again back to how do you get funding with bad credit? Number one start cleaning it up use OPM, OPC, and other resources that are available to you. They're available all over the place. If you can't find them call our office. We'll help you find them. There are so many ways to get credit. So the big thing you've been waiting for is Chris and his story. So Chris came to me and had just horrible things happen. He was with a partner an older partner who said don't worry about it. I'll get all our paperwork cleaned up. I'll make sure you're 50-50 on the LLC's. I'll make sure that you're on my bank accounts. It should have occurred to Chris. He never went to the bank to sign on to the bank accounts and so on and on this went they were extremely successful one day the guy died, right? So now what does he do? The entire state took it into probate, which is why a family living trust is so critical. A will does not do that trick. So here's Chris has nothing had to go buy everything back from the state. So comes to me and said what do I do? So I taught him about OPM. That's number one. So that started getting him on his way. Then we got really strategic and I introduced him to not only the the EIDL loans, which that takes a little while to apply and you have to have the proper entities again P&L's business plans applications that takes a little time still absolutely want to go through it and he's going through it. But what he did is he actually went and he got these 21 month credit cards. So you apply for funding. You have a very specific team who will take you through the funding process. He got over $150,000. It comes in a whole variety of credit cards and a few things drop into his bank account. So now he pays 0% for 21 months. That's almost two years. So this is like free money. It's free, right? So you got to use it smart. So what did he do? He started rehabbing some houses so he would use the cards not for the down payment. He had to use OPM for the down payment, but he would use the cards to go to Lowe's to Home Depot's to whatever vendors he needed to pay plumbers to pay electricians to rehab the whole property. So basically he got the whole rehab done free no interest payments to any hard money lender and at the end again sold the house paid all the cards back. Therein lies the principle for a lot of people you blow that part pay all the cards back. It actually increases your credit score go again go again. And if you're really good, you can flip houses. You can probably do one two to three times a year. If you're good think about how many properties you can do in 21 months and use free money of the whole time. So if this is interesting to you and you want to know how I helped Chris get 21 months of free money how I helped other people get these loans how I help other people get OPM OPC. I'm going to have you click to a video that I've done prior on SBA and EIDL loans in the description below is the link to the video. It will click you over there will tell you everything you need to know about it and then a call to action over there about how to get my resources to help you on your way to becoming a millionaire.