Recording for Sat Q&A (Jan 17th) · Tradeline Secrets

Tradeline Secrets

David Ramirez

2d • General discussion

Recording for Sat Q&A (Jan 17th)

I will also upload to YouTube. Below are notes by Fathom

Meeting Purpose

Q&A on business credit, funding, and credit repair strategies.

Key Takeaways

Personal Credit is Key: Business funding is primarily secured with a strong personal guarantee (PG), not a business credit score like Paydex. The ideal profile requires a 700+ score, low utilization (<10% per card, <20% overall), and a clean history.

Funding Unlocks with Time: The type of funding available depends on a business's age. New businesses (0–12 months) are limited to unsecured business cards, while established ones (2+ years) can access more traditional loans and lines of credit.

Strategic Credit Repair: Effective repair requires custom letters using the "Damages, Facts, Penalties" framework to bypass automated bureau filters. Generic templates are often flagged as third-party disputes and ignored.

Real Estate Funding Tactics: Business cards can fund real estate deals by liquidating funds via Plastiq for earnest money or down payments. Transactional lending (EMD loans, double closes) provides alternative gap funding.

Topics

The Problem: Misconceptions & Ineffective Tactics

Paydex is Misleading: Building a Paydex score is often sold as a prerequisite for business funding, but it's not. Lenders rarely check it, and applications don't request a DUNS number.

Generic Templates Fail: Standard credit repair templates are ineffective because automated bureau systems flag them as third-party disputes and send stall letters, denying the dispute without review.

Lost Revenue for Consultants: Consultants lose revenue when clients pay for unnecessary services (e.g., $2k for repair on a 720 score) or when referral fees are low (e.g., 1% on a $100k fund).

The Solution: A Strategic Framework for Funding & Repair

Ideal Personal Credit Profile (for PG funding): Score: 700+ minimum History: 2+ years overall Utilization: <10% on individual cards; <20% overall Inquiries: 1–2 per bureau maximum

Funding Unlocks by Business Age: 0–12 Months: Unsecured business cards 2+ Years: Unlocks traditional products like term loans and lines of credit

Strategic Credit Repair (Daveed's Method): Framework: "Damages, Facts, Penalties" Process: Custom letters detail the specific law broken (Facts), the personal impact (Damages), and the legal consequences for non-compliance (Penalties). Rationale: This approach forces a legal review, bypassing automated filters and making stall letters a potential violation.

Application: Real Estate Funding Tactics

Business Card Liquidation: Method: Use Plastiq to pay invoices with a business card, converting credit to cash. Use Cases: Earnest money deposits (EMD), down payments, or materials for fix-and-flips.

Transactional Lending (Aaron's Expertise): EMD Loans: Provide earnest money for refundable deposits; no credit check required. Double Closes: A wholesaler buys and immediately resells a property, using transactional funding to avoid the end buyer seeing the profit margin. ECHO Stack: A wholesaler raises a property's price on paper to increase the end buyer's loan amount, then pays the down payment gap.

1:10:43

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Tradeline Secrets

Tradeline Secrets

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