business credit for recession times how
can we utilize business credit
so that way we can save the businesses
and also your real estate
hey what's going on guys this is daniel
one half of the quack brothers and today
i've got my best friend
mr melvin johnson welcome back my sir
thank you sir yeah i like the little
polo too it's nice
you've seen this before yeah i've seen
this before yeah we've done some videos
don't act like you're new here yeah i
mean uh so today we're gonna talk about
business credit
uh i'm gonna ask mello questions on you
know what is it of course
because we want a little reminder if you
guys haven't checked out our video on
business credit go ahead and check that
out as well on how he went from zero to
2.5
million in nine months right nine months
so we're also going to talk about how to
use business credit
for times such as today right with all
the volatility that's going on before we
go ahead and do that guys don't forget
to like and subscribe
to our youtube channel we got a lot of
great content coming out especially for
what's gonna happen
in the market so first things first
welcome back
and the first question being remind us a
little bit the viewers
in a minute or less 60 seconds or less
what is business credit
so business credit is for anyone who has
a business uh
uh entity a llc s corp llp
even sort of a sole prop to some degree
and it's for those who
wish to have business credit that is
associated
that's separate from their social
security it's
in a nutshell that's pretty much it so i
don't want you to get obviously too deep
because you talk about that you know in
our zero to 2.5 million video
uh so number two you know i know you're
a real estate investor as well you're a
business owner you're very deep in the
credit and banking space
you know what do you foresee happening
right i mean we put out a lot of these
great market update videos
but what do you see happening in the
credit in the business credit banking
space
you know the next six to nine months
yeah i'm glad that you shortened it to
the last next six to nine because i
think it's easy
to track what's going to happen i think
we're going to see sort of a steady
progression of
banks sort of tightening uh lending
we're seeing that now
uh sam and i were talking yes yesterday
do you even have
certain banks that are already sort of
closing down even on the personal side
some of the uh lending that they were
doing such as like key locks he loans
that sort of thing
so in the business space i think you're
going to see a lot of that tightening up
if you don't have
prior relationships with the bank before
the market sort of continues to progress
in the way that it's going i think that
right now
would be one of those times that right
start sort of implementing that yeah 100
and you know one of the things i love to
do is i love to translate what a lot of
people say in terms of guests and
translate to action steps
for these guys to take advantage of and
start doing today so i heard you say
building a relationship
with the bank what does that look like
so building a relationship with the bank
is just simply uh establishing
some kind of relationship on a lending
scale so
you want to have a you want them to be
familiar with you
to some capacity so maybe opening up in
a bank account maybe opening up a a
credit card or a line of credit with
that bank
uh not necessarily a line of credit but
maybe a credit card or in just a
just something as simple as a bank
account or a business checking account
or a business checking account of course
you know
and that way they're able to monitor
what kind of
lender uh they have with them right
rather than them going and having to
sort of assess the company
through your previous checking account
or maybe you don't have one and
you're relying heavily on the personal
side you want to have that relationship
right now i think that would be one of
the action steps that i would take if
if i'm looking to take advantage of the
market
going forward you know within the next
six to nine months establishing a
housing checking account yeah
and especially when we're talking about
you know for recessionary times and of
course technically speaking we are
currently in a recession these are
things that these guys can do now
now using business credit and i know you
used business credit for real estate for
business before you know you've done
some phenomenal projects
you know beautiful homes and things of
that nature uh but
considering in light of what you've done
with business credit what are some
things that these guys can do with
business credit
during recessionary times yeah well with
the business credit doing now i mean i
think
it's a awesome time to sort of start
building that the business credit i
think that
uh it's one of those things where you
have this motto if you're
with me in the hard times of course when
the the sun begins to shine again
you're going to be looked on favorably
yeah you know as individuals that
banks will lend to you know in the
future so uh sort of maintaining
a healthy relationship with the credit
that you previously have right now
on the business side uh opening new
accounts with
sort of the smaller vendors right so
right now the net 30 accounts and the
sort of the net 55 accounts so that
maintaining those and sort of asking for
increases during the right times and
sort of managing that right now i think
that that is
um that's key you know i would say that
that's key to
making sure that you're taking advantage
as much as you possibly can of
the credit that is being extended to uh
corporations right now that would be one
of the the major
sort of small things that you can do
right now to to make sure that you
yeah so what would you say to those
individuals who are asking you like well
mello you know
um these are tough times our bank is
starting to tighten
in terms of you know some banks are not
even taking on applications anymore for
certain line of credit programs
what would you say to those individuals
to help mitigate that process
for business for applying for business
credit and wanting to use it for
opportunistic right times right that we
are in opportunistic strategies that are
available what would you say to those
people who say well
you know there's there's a lot of
there's a lower chance of me getting
business credit because all these banks
are tightening how would you mitigate
that
yeah i would say that you know and this
is why i talked about it in the video
that we have done where the
partnerships that was that was crucial
in
raising that amount of line of credit
with you know with the 2.5 that
i was able to do because i knew that in
a time
like this me on my own considering my
real estate journey had
it's fairly new i wouldn't i would be
most impacted by
uh sort of a recession like this because
i'm not
sort of lendable on my own so the
strategic partnerships that i had
uh established with individuals who have
high net worth good credit score
you know they sort of have a track
record of even just on the personal side
which help
businesses to be able to assess okay
what kind of um
what kind of person is this going to be
at this particular point
because banks want to know that they can
trust the business
owners more so than they can the
business right now you know so that's
why a lot of that
is tightening it up so i would say
reassess
you know where the business is is the
business at a place has it because i
think this is a phenomenal time for
people to really
uh see whether or not they've been
building building the business to a
point where it is able to stand on its
own
or maybe you know maybe not yeah and you
have to reevaluate
you know the partnership or you know the
you as the individual owner the
structure of the the company
how have you um you know build yourself
up to
to be bankable yeah like this so for a
lot of the individuals that are watching
let's say they're watching this they
they see the business credit for
recession
right and a lot of them are saying wow
like i know there's going to be
opportunistic times
during a recession and i know i can
utilize business credit
you know so you're saying that number
one build a relationship with the bank
right number two build a relationship
with investors who have capital who are
bankable
and i would agree with that right
because if you're using business credit
you're getting more
bang for your buck for those investors
and i know you and i
talk a lot about that off camera so last
but not least
you know in terms of using business
credit right for
recession proofing we know that there's
opportunities that the banks are going
to provide during
you know recessionary time such as short
sales right reos
right lease options these are all things
right the three things i just mentioned
these are three exit strategies
that are very prominent during
recessionary times
give us an example with just one of
those three things i just mentioned
on how business credit can accelerate
one of those processes yeah for sure so
uh let's just say for short sale you
know accelerating that
particular point that's like you know
bank bank center
right it's one of those things where so
with business credit
and sort of uh sort of being able to
mitigate
whatever obstacles that might come up
with you being able to obtain
the opportunities that may come with
acquiring maybe a short sale or whatnot
um you know for us per se we had a
you know one of the last properties i
bought was actually at a uh
a live auction okay so similarly it was
the bank was selling the property and
because of our
you know line of credit with our
business you know we were able to
show you know just the pof from our our
lender at that particular point and we
were able to sort of capitalize on not
having the cash
in hand at that particular point and
using that to
acquire uh property you know we didn't
necessarily need to wait on the idl
or the pvp that sort of regulates the
kind of purchasing that you can do
and although those are great programs
you're not able to do certain things
like right you know purchase real estate
yeah so
you know for us having that line of
credit but
most more so for me right having that
the partner
right the investor who had the good
credit the sort of the
the track record prior to me being able
to establish a line of credit
and then having the opportunity to go to
a live auction
i was able to use utilize that line of
credit
business line of credit to purchase real
estate during the time right now so
i wasn't necessarily affected as
effective as everyone else who was
who was there you know who only had you
know cash
you know me that's why i say if cash is
king credit is the twin brother
right right so i was able to utilize
that to acquire
this last project that we that we
purchased so
in some capacity you know we were sort
of safe from
what what we're now in which is the
recession
and we're able to still sort of use that
buying power to
to to vibrate right and that buying
power will be a lot better because in a
short sale you're typically getting it
less
for sure than retail price you know so
with the combination of building a
relationship with the bank building a
relationship with an investor who's
bankable
to access that business credit and then
you have an opportunity
now right in the next six to nine months
with recessionary times
a phenomenal opportunity to short sale a
property acquire it
for potentially at a discount of the
retail so would you say that's a pretty
good blueprint
those three things that somebody that
somebody watching right now could do
today
oh absolutely i mean i think that you
know
people more people are losing homes you
know right now i mean i think
the numbers are skyrocketing in regards
to foreclosures and stuff like that so
developing a relationship with this sort
of a foreclosure agent in your your
local area you know
just small things that you can do to not
sort of overlook the opportunities that
you can maximize on right now
because you have uh i mean a limited
amount of opportunities the base hits
that win games you know
and i know we're looking for the home
runs but you know it's those small
things that sort of keep you in the game
so that
when the sort of the air is released
from you know the bubble you know we are
able to breathe again
you're in that much more of a position
uh
to sort of even capitalize on the
opportunities that'll come down
so yeah you're absolutely right i think
that these are sort of three things that
people can capitalize on awesome so i
want to point these guys to a resource
you know we own
have a facebook group together it's
called business credit tips and tricks
the link is in the description below
guys for you guys to check that out and
of course don't forget to like and
subscribe
because we want mellow back on these
videos to continue talking about credit
so you guys can succeed thank you guys
so much for watching this video i'll see
you guys in the next one