Acquiring Business Credit Or Buying A Shelf Entity?
Here is the situation. I read Rich Dad Poor Dad for the 3rd time and something clicked LOL. He mentioned how he bought a 100K house for $3500 at a tax sale. I became obsessed with learning how he did that.
Regardless of what your opinion is of tax sales they are still full of plenty opportunities. Where I want to invest isn’t a huge metropolitan area full of lenders buying up everything. There will be more properties than investors. And I don’t believe there will be multiple people with millions of dollars there either. My impression of the sales are that they are full of clueless people or newbies with little or no cash. I learned the research methodology behind investing in these sales. I practice the methods every other Friday in the county research room. I’ve learned how to minimize the risk.
Somewhere along the line I decided I needed a business plan. So I’ve written a business plan following the professional format with executive summary’s and sales projections etc. I have a guy who is willing to let me hold 100K. I plan on signing a joint venture agreement with him to spell everything out.
Although I have access to real cash I’m still not satisfied. I want a business line of credit. I was told by a broker that chances are my business could get a loan for the amount I want. I don’t want a loan I want the credit. The same broker even checked around and said he found a lender who would offer the credit based on the 100K and good business plan.
The type of guy I am I like to stack the deck in my favor. The only other stumbling block I forsee is the amount of time the company has been in existence. Today while reading various discussions on this site I think I found a slick answer to that. Where can I buy a shelf entity that’s 2-3 years old? I may not have to go that route but if I do how do I buy another company?
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