OfflineMy first post...Ive been here about 2 months now and can relate to a few people. I myself have taken the route of a joint venture with another investor, because my credit is not up to par. So last week I started looking for ways to establish credit. A lot of people in the same boat decides to established LLCs. Which is what I looked into. During my search I got a call from one of Dean's Partners that help you setup a business. Which they inform me to get an LLC. There were a couple programs and they cost about a couple hundred dollars to setup plus state fees. I told them I will take a day to think it over. Here comes the DEAL OR NO DEAL part...After I got off the phone I decided to search for California LLCs for sale on Google.(BTW I did see Anita's post about her selling one of her 1+yrs established LLC for 15K before I started looking into LLCs.) Anyways I found a guys link to craigslist selling his established LLC for $1,000. I decided to contact him to get more info. This is the info, The LLC was established originally in Nevada in 1998 and was changed over to California in 2005. It has current bank accounts with atleast one account with a line of credit available for 60K. Has been filed taxes every year showing income for about 400K gross a year. There is NO types of leins on the LLC which he will put in the purchase contract as a guarantee. He gave me a couple days to decide. I asked if there was any info on it with DunnnBradstreet. He said it had a DNB number but he didn't pay to subscribe with them for a "rating", but he pulled a 39.95 info from DNB and it has the LLC as a Management Consulting business thats been around for 10 yrs. With a LOW risk for loan request. DEAL OR NO DEAL? 1K is a lot to send to someone you don't know but what should have I done. Anyone who has experience with LLCs, specially in California can you suggest anything.
DEAL OR NO DEAL?
Posted on: Thu, 01/29/2009 - 20:39
Do you have more money than time or more time than money?? I would probably just start my own LLC if I wanted one.
Thanks for the reply Mark, as far as money goes we have a small down payment for our first purchase but won't be using any of that for the LLC purchase. I sold my camcorder to come up with the funds to purchase it. Kind of like when CBRpower sold his car to get started, which I would consider doing if I needed to for our next purchase. As far as time Im not sure what you mean, Im 29, and decided to try to start living life like it was my last day on earth everyday. How long does it take for an LLC to establish good credit? I figure if I get that LLC and I can use it for future deals because of the line of credit(like when Jason needed 28K and someone that had the money was able to let him borrow it for the day and they split the 2K profit...Im all for that.)Am I expecting too much out of this LLC purchase? Are my thoughts out of the ordinary, like they won't work? Please let me know your thoughts anyone.
See if you can find out what the DUNS paydex score is for that LLC. If it is an 80 paydex score then you will be in great shape with buying that LLC. He should be able to find this information easily. I never paid DUNS any money and I am able to login with my DUNS number and password and get my paydex info.
"If you cannot do great things, do small things in a great way.”
Napoleon Hill quote
I have a friend that will sell shelved LLC that have established credit, or attach seasoned credit lines to your current LLC to boost your credit score right away and you can go get big lines of credit. To do this he charges at the low end $3000. If your getting a LLC with good credit history and a good score that you can access credit right away, it seems like a pretty good deal.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
Id like to point him out to the direction in DNB where to get that paydex score, the guy doesn't seem to have ever looked in DNB for any info until he paid for that 39.95 fee for the basic info he got. Can you right up simple directions to where to locate that info. I spoke to him today and he said that he was contacted by a shelf broker(I don't know what that is.) That said if he pays the DNB fee of something like $500+ and attach the bank accounts to it that the guy can list it for him for around 15K. But he wants to work with me because he wrote me up a contract yesterday which I have in my possesion. I have until friday to take action, which is nice of him. He has 2 other LLCs with legit businesses thats why he doesnt want this one anymore, im sure the $800 tax fee at the end of the year doesn't help.
Im not too familiar with that term shelved LLC. But he mentioned that he was contacted by them to list it with them. Can you elaborate? Is this something I can do once I have it?
Tell him to go to https://eupdate.dnb.com/
It will prompt him for a password and his DUNS number.
If he can't remember his password, they will send him an email of it.
Log In to View and Update
Your D&B Information:
D&B D-U-N-S Number
eUpdate Password
Don't remember me
Remember my D-U-N-S number
"If you cannot do great things, do small things in a great way.”
Napoleon Hill quote
After you log in is it visible on that screen or do you have to click on something to see the paydex score?
Thanks again,
Ron
It will be visible, but he would need to enter his name, company name, title and then he will have the option to update his d&b report or view it.
"If you cannot do great things, do small things in a great way.”
Napoleon Hill quote
Many thanks Jason, I will contact him again and will post when I find out.
A shelved LLC can also be know as a shell LLC. It is simply a LLC that is not being used anymore that will come with all the credit that is attached to it.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125