How To Buy Cars In Your Business LLC For Turo or Private Car Rentals

what's going on YouTube family it's your

boy Mike the businessman all right so

today I'm actually in the warehouse

today

um so yeah I just kind of wanted to

share a few things about the buying

process right a lot of you guys uh sent

me DMS saying that you guys are having a

hard time qualifying to get some of

these cars

um so I just kind of want to break that

down to you guys right like how your

credit profile needs to look to be able

to qualify for some of these cars okay

um especially starting off right I mean

if you want to start off with economy

cars or you're going to luxury or you

want to do a big dog style you want cars

like these guys over here you know then

you know I'm a kind of break down the

process what you guys need to do

um so let's let's start with let's say

your your credit profile right so at the

end of the day your personal credit is

King right so you need to build that up

and then once you've built it up you

don't touch it no more okay every most

most millionaires don't ever touch their

personal credit okay so they build it up

get it over a 700 and then everything

starts to go on your business credit

including your cars okay

um so personal credit right there's a

few things that matter with personal

credit all right

um there's a number of derogatories you

have on there you got to make sure you

have zero derogatories on your credit

your personal credit you got to clean it

up Credit Repair actually works you guys

should find a good credit repair company

um and they actually work and they can

take some of those things off

um age of credit is very important too

you want to have at least five years or

more that's how you deal okay that's a

sweet spot

um if you find that maybe you have less

than that as a hack for that you can

actually get what they call a trade line

okay you get a primary trade line and

many companies out there and I know the

credit repair companies out there gonna

hate me but go to tradelinesupply.com

and that's where most of them get it

from you actually go to

tradelinesupply.com and you guys can

actually get yourselves um trade lines

on there so if some of these cars offer

your for your credit basically what a

trade line is is basically somebody will

add you on their card as an authorized

user so basically these companies will

sell you a trade line so it's a credit

card and you get added as an authorized

user and then you inherit all the good

credit history of the person that owns

that credit card okay that's one way to

do it okay another way to do it is

actually to get your own trade lines I

like a company called credit strong you

go to creditstrong.com they have the

Magnum product

and with the Magnum product you can get

a credit a credit a line of credit put

on your credit report

um Sean said five thousand ten thousand

fifteen thousand and you know and

they'll give you some age to it so

imagine having something like that on

your credit report right that that'll

that'll definitely boost your score up

so age of credit very important all

right so another thing too is your

utilization that's a very big factor in

your credit reports um so if you pull up

your credit karma you'd see on there

your utilization and that's where a lot

of you guys get wrecked you might not

necessarily have bad credit but the

problem is the little credit that you do

have you guys are maxing it out so say

you have a thousand dollar credit card

and then you're running it up to 800 900

you know you're thinking well that's not

much well guess what it's almost like

say you have a thousand dollar card and

you run it up by 800 you've used eighty

percent of your available credit and

they don't like that matter of fact to

have good credit you want to have your

utilization some say less than 30 but if

you really really want to be able to

apply for anything I'd say less than 10

okay I'll say and get it less than 10 so

going back to that example you have a

thousand dollar card do not use more

than a hundred dollars on that card and

when you use it you pay it off at the

end of before the statement closes at

the end of the month okay that's the way

you boost your score up some of you guys

that's all you have to do is just pay

down some of those cards you have

um and that will boost your score up you

want to be 680 or above the sweet spot

is 700 and up you're golden once you're

700 and up you've got some age maybe

you've thrown a trade line on there say

you know your mama your mama's got good

credit she's got this credit card she's

had since she was a 18 19 20 years old

so it's got like almost 30 40 years of

age of credit age have her throw you on

there as an authorized user as long as

your mama pays her bills right okay so

she's got to be paying her bills

properly and then she can throw you on

her card and then that way you guys

could leverage um her credit profile

okay

um so once you've done all of that your

personal credit should start looking a

whole lot stronger now what you guys

want to do now is start focusing on your

business credit okay so I'm hoping but

you guys gonna go get it and go get an

LLC get your LLC Incorporated um a

service I like to use is called Inc file

i-n-c-file incfile.com you go in there

they're pretty quick you get that set up

in no time

um should take about a week or less and

get your LLC set up and then now um you

want to go ahead and start establishing

business credit so you want to go to a

website called uh dun and Bradstreet

okay so don andbraststreet.com I think

it's dnb.com

um just Google it done in Bradstreet

right go there and you want to go get a

done and Bradstreet number it's free

don't pay nothing they have all these

packages they try to sell you guys don't

pay for none of that get your done and

Bradstreet number

um then once you get that the quickest

way to generate um your business credit

score what they call a paydex score is

um you want to also get an app it's an

app out there called nav like Navigator

and navigation nav.com go get use ad go

get nfv.com the app will go to the

website sign up for it

um and the beauty of nav is what nav is

is kind of like a Credit Karma app but

it's for your business credit so you can

keep tabs in your business credit you

can see your business credit score okay

so once you have nav

um you subscribe for them you have to

pay for this service all right I think

it's like 20 bucks a month but the

beauty is so it gives you access to your

business credit report but here's the

Bar Naval also every time you're paying

that twenty dollars a month now we'll

report that to your business credit

profile so also and the beauty of it

just signing up for nav it'll automatic

automatically generate a paydex score

for you so now you've got your first

business credit score okay uh with

business credit there's a paid X score

there's an experience score and then

there's an Equifax score okay

um so now you've gotten your paid export

generated right because you signed up

for nav.com now to beef up your profile

um I'm going to describe this in two

ways right so people that already have

good personal credit your personal

credit is A1

um you're just not sure of the business

credit you guys are good you can now

start going to apply for business credit

cards and all of that stuff you're good

because at the end of the day they're

going to base their decision on your

personal credit all right you're going

to be personally guaranteeing any

business uh business credit cards or

business lines or credit that they give

your business loans okay based off of

your personal credit right so that's

that's for people that already have

strong credit scores are you over 700

already you're good at this point just

go ahead and start applying for some

stuff

um however if your personal credit is a

little weak and you're probably going to

get declined when you try to apply for a

lot of these uh uh business products or

going to go get some cars under your

business name so what you need to do is

now build up your business credit

profile and to do that now you guys need

to start going down what they call

Vendor accounts okay you need to go get

vendor accounts on your business credit

okay Home Depot

Lowes amazon.com

um Floor and Decor

um there's a bunch of these stores out

there they give Best Buy they all get

Staples they give um

they have their their credit cards or um

and or what they call Net 30 accounts

right so basically you you buy an item

today and you have to pay back 30 days

later that's why it's called net 30.

there's net 60 so buy today payback

within 60 days so to extend a line of

credit to you basically all right to

your LLC okay so with the net 30

accounts you're able to build up your

business credit now um there's several

companies out there there's uline.com

there's grainger.com there's a ton of

them out there and basically these

vendor accounts what they do is

um they they issue they'll sell you a

product

um with a promise to pay in 30 days or

60 days and if you do pay on time they

will report to your business credit

profile okay so now you're Equifax and

your business experience course starts

going up okay depending on which one

they report to so that's the way the

game works so then this is mostly this

route the vendor account route is mostly

for people that don't have good pressure

and personal credit I personally I

didn't go through all of that my

personal credit was already good so I

was ready to start shooting my shot I

went straight to start getting my LLC

was new it was barely three months old

old and I just went and started getting

um business credit cards and then

getting my cars okay because my personal

credit was already good I already fixed

that and it met all the right data

points okay so um if yours if your

personal credit is not good then yes you

got to go down the vendor account route

because you you want to make the you

want the banks to base their decision

mostly on your business credit okay if

they see your personals a little weak

but then your business credit is strong

they'll be more willing to give you uh

credit so but that's the way you start

to build up your LLC to where now you

can now walk into these dealerships and

then you can try to start getting cars

nice cars fancy cars like some of these

guys over here you know you start

getting cars like that

um you might not be able to just jump

straight to getting these types of cars

but your chances are a whole lot better

of walking into say your Toyota Honda

um Audi BMW all of that and getting you

start off you start off small right if

you've never had a car note before in

your life you're gonna have to start off

small maybe 20 something thousand

dollars or less you get approved with

them under your LLC this LLC that you've

already built up and this whole process

might take you about three months if

you're going through the vendor account

process it might take about three months

three four months or maybe a little

longer six months at Max

um now you can walk into these

dealerships with your LLC and they

should be able to give you a nice car

you go get a walk-in or walk out with a

Toyota Camry a brand new Toyota Camry

strictly on your business credit it

won't report to personal okay

um another thing too is when you guys

are filling out these business

applications at the car dealerships make

sure you're not co-signing for the loan

okay A lot of times they'll try to trick

you into doing that they'll make you

co-signed a loan basically if you

co-sign it still appears on your

personal credit report okay you want to

only personally guaranteed a loan okay

which means if you default on the loan

they can go after your personal credit

they'll report it to your personal

credit okay um you don't when you

co-sign it's going to show up on your

business credit and your personal credit

you don't want that okay um so go with

companies that won't do that so I know

um I know uh uh Toyota Ford

Mercedes-Benz BMW

um Ally

um they'll put them they'll put the cars

on your business credit for you and and

just make sure they don't tick the box

that says co-signing okay if you do all

of that um starting off you'll be

straight so like I said you start off

with the car like 25 000 once you pay on

that for at least three to six months

you cannot up to a car that's about

fifty thousand this is called the ladder

of Ascension so you're going from thirty

thousand and you're going to work your

way up to double that so the next time

you go for a car they'll approve you for

double the previous Cardinal so you got

approved for 20 something thousand the

first time the second time you go

they'll give you double that maybe 45 50

000 then they'll give you 75 80 90 000

then you can step into the big boys you

start getting cars that cost a hundred

thousand or more now you're in the

you're in the big leagues now okay so I

hope this video helped you guys out I

just wanted to make it real quick thank

you guys very much for um tuning in hey

put your put some comments Up Down Below

let me know what you guys think what was

your journey uh getting your getting

your cars um what how did you build up

your business credit you have any

questions put them in the comments and

guys don't forget to like um hit the

like button like these videos I need

some engagement and don't forget to

subscribe so I can keep doing this okay

thank you guys very much and I'll see

you on the next one