Welcome to every possibility podcast. A place for new investors to learn about investing, starting a business and credit knowledge. Sit back, relax and let’s get the conversation started…
My name is Ameerah and we have a bonus topic for today which is unsecured financing and how it can help you.
First let me start by giving you the definition on unsecured financing from Investopedia.
“Unsecured loans—sometimes referred to as signature loans or personal loans—are approved without the use of property or other assets as collateral. The terms of these loans, including approval and receipt, are most often contingent on a borrower’s credit score. Typically, borrowers must have high credit scores to be approved for unsecured loans – Investopedia”
So with these loans it is like putting cash in your account by only using your credit and income.
What you do with the money is up to you. However in my opinion you can use it to buy an income producing asset or if you believe in your business and need working capital then this loan could be helpful.
Or for those looking to start a business or purchasing a franchise these funds can help with that too.
With my business model I mostly help beginner investors. They can use these funds to fix and flip a property, buy a rental or may need cash for down payment to purchase a commercial property. I don’t limit myself to these individuals because again these funds can be used for anything.
So let’s break the qualifications down. Well I can only speak for what my business and what my back office can accept. This does not mean every bank or financial institution goes by these guidelines. The better your credit profile and the higher your yearly income puts you in a better position.
So we can help you get up to $400K in unsecured funds. I repeat UP TO $400K. We can usually get you up to 3X more than a traditional bank can give if you do this yourself. We also have full time attorneys who will negotiate the rates and terms with the financial institutions on your behalf.
The qualifications are the following
650+ credit score
Clean credit history for at last 2 years. No late payments, No change off, No Collections or judgements within the last 2 years.
If you filed for bankruptcy then it will need to be discharged for at least 2 years
Your credit utilization needs to be under 50% on each credit card. The lower the better
You should have at least 3 PRIMARY tradelines on your credit report
And less than 6 inquiries across all of the bureaus.
Now what I am about to tell you next is what gets people hung up the most which is NO NEW Accounts OPENED in the last 6 months. For example. No refis, no new loans, no new credit cards to name a few on your credit report.
I know some people get that credit card itch every couple of months. I know I do sometimes however if this is the route you want to go then please refrain from doing this.
Last but not least we need to talk about your income. You have to make a minimum of $30K to get financing. This can be from your W2 job or from your business. If this is from your business then you have to show an Adjusted gross income of $30K. This has to show on your taxes that you file. I can not stress the importance of paying yourself just as you would an employee. Please consult your accountant about this. I am not an accountant.
I am not telling you what to do, I am only giving you our requirements. If you can find someone that can lend you up to $400K unsecured with less restrictions and you trust them then by all means use them.
All of these qualifications are on my site. I try to make it very transparent about what is needed to get funded.
Now let me put a disclaimer. Any type of loans you get can put you in financial risk. I am not a financial advisor. You assume all risks and responsibility for your investments. The example I am about to give is for educational purposes only.
So now we got that out the way let’s look at examples on how you can use these funds.
I posted this on Facebook a while back or as my family calls it the Book of Faces.
Let say you get qualified for $100K in unsecured funds and you want to purchase 10 acres of land. This land could be near an up and coming community and near major streets.
You purchase a piece of land with unsecured funding
Note: The loan is not tied to the land. So in the eyes of the seller you are paying cash
You decided to split the land up into 10 (1 acre) plots and you sell each plot for $50K. (again this is hypothetical)
It would take you 2 plots to pay back the loan and the rest is just pure profits – expenses
You can walk away with almost $400K in your pocket!
I hope that gives you an idea and gets those brain juices flowing on how you can leverage your credit to make extra income for you. Use your imagination. The possibility is endless
I hope everyone will have a good day and a good week and I will talk with you soon.
Thank you for taking the time out to listen to this podcast. If you are interested in unsecured financing for your next business project you can reach out to us at www.everypossibility.net or give us a call at 469-722-1788. We would love to hear from you. But until then bye now…