A Success Story: Real Estate Investment & Business Credit

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Thankful for Partnering with the Experts at North Shore Advisory Inc.

2018-06-26 13:39:28
Tracy Becker

How a company was able to repair their business credit & remain successful –

(Although this is a very true story, names of owners and company have been changed to protect identities.)

Robert and Nathaniel own a real estate investment and management firm, R&N Property. They had been managing, renovating, and selling residential real estate for decades, and they had decided to start a business together.

Heres the thing – to succeed in this industry, you are largely dependent upon the ability to pay upfront cash when you purchase investment properties. This creates the best prices, and thus the biggest profits. To do this, you need a strong cash flow surplus. And for a strong surplus, you need wealthy investors.

So Robert and Nathaniel devised a formula, and it relied heavily on wealthy investors who could supply the cash overflow that was so critical to their potential investments.

Robert and Nathaniels collective experience, along with the bevy of investors they were able to obtain, led to early success with their business.

Then 2008 hit, and everything changed.

The crash of the real estate market drastically changed the mindset and approach of investors – instead of being gung-ho, they had become risk-savvy. They started reviewing business credit reports much more consistently and thoroughly before approving investments.

Years later, R&Ns business credit scores/indexes took a major dive as they saw the transition to a new bookkeeper. Robert and Nathaniel didnt see the impact of this until one of their biggest investors/partners, someone who had become a crucial component to their success, began turning down investment opportunities and eventually pulled out a large portion of existing funds.

Like most first-time business owners, Robert and Nathaniel had no idea their business credit could be reviewed without their consent. Most people assume its like personal credit, for which you receive notification and you must give authorization to access to your records. But that is not correct in the business world.

Investors were dropping out due to poor business credit, and whats worse is how Robert and Nathaniel had no idea. How could this happen? R&N had been in business for over 10 years, at this point, and investors never so much as blinked an eye.

Instead of gloating, they went to action. Robert and Nathaniel needed business credit repair to keep investors and save their business.

So they came to us.

The first thing we were made aware of was how time sensitive this was – for every day their credit went unfixed, Robert and Nathaniel were losing on potential purchase opportunities. This was coupled with the waning confidence of their investors who, by this point, were almost all out the door.  

Hearing this, we made R&N a high priority and immediately dug in. We started by analyzing their credit reports, scores, and indexes from Dun & Bradstreet, Experian, and Equifax. Our business specialists immersed themselves into the reports, removing and correcting aspects of their business credit profiles. Within just one month, their scores were at low-risk levels and they were able to win back the partnerships that had almost fully deteriorated.

Even now, we work daily for R&N Property by monitoring, repairing and building their business credit. Its currently at the best its ever been. Best of all, though, Robert and Nathaniel know they have a dedicated team of experts who work tirelessly on keeping their credit score at an optimal level. This way, its not even a hint of an issue as they continue to bring on investors and build partnerships.

Thankful for Partnering with the Experts at North Shore Advisory Inc.
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