How Entrepreneurs Use Debt to Build Wealth w/ Millionaire Essentials

Law of Attraction SECRETS

Host Natasha Graziano sits down with Brandon Jackson and Tevin Facey, founders of Millionaire Essentials, to discuss the strategic use of de

Key takeaways

• Business funding includes various instruments like 0% interest credit cards, lines of credit, and traditional loans.
• Banks evaluate business funding eligibility based on the 'Three Cs': Credit, Collateral, and Cash flow.

Main topics

• Business Funding Mechanics
• Credit Leveraging Strategies

Notable quotes

Good debt is definitely better.

Conclusion

The episode serves as a masterclass in viewing debt not as a burden, b

Transcript preview

Speaker 1 (0:00) Hey guys, welcome back to the Law of Attraction Secrets podcast. I'm your host, Natasha Graziano. Today in the studio, we have two amazing entrepreneurs. They are together the Millionaire Essentials, founded by Brandon Jackson and Tevin Facey. They help entrepreneurs build credit, access business funding, and use capital strategy to scale businesses and invest in real estate. Welcome to the show, Brandon and Tevin. Speaker 2 (0:27) How you doing? How you doing? I Speaker 1 (0:28) love it. Millionaire Essentials. And I love it. You've got it on your hat already. Yes, Speaker 2 (0:32) ma Speaker 1 (0:32) 'am. Yes, let's fucking go. I love it. You guys bring like real energy. You've got so much knowledge. And I love how we met here in Best Best. Speaker 2 (0:42) Right, right. So Speaker 1 (0:42) cool. I love it. Did you guys have a booth there? Speaker 2 (0:45) No, not this year. Not this year. But we did have a booth before. Speaker 1 (0:48) Oh, I love that. So cool. I love it. I love it. So fun. All right. There's so much I want to talk about with you today. I feel like business funding, credit and building wealth, like this seems to be a topic which we talk about on this show all the time. So I know the audience is going to love it. So first thing I would love to ask you is what exactly is business funding? Speaker 2 (1:08) So business funding is just the fact of, right, when you go to a bank, right? and you ask for funding, a lot of times people ask for personal funding, right? So meaning you're using your personal credit in order for you to get access to capital, right? And the capital is that the bank is lending you money, and now that you're getting the money, basically at that point you can use it for whatever it is. But for business funding, business funding is specifically for the business, right? So you're getting access to capital based upon, you know, what your business generates in revenue so that you can use that capital so you can make more money. Essentially, that's what business funding really is. Speaker 1 (1:42) So how is business funding different from a normal business loan? Speaker 2 (1:48) Okay. So Speaker 3 (1:49) business loans is business funding. So there's many sides of business funding, right? So you have credit cards, you have lines of credit, and you have loans. Those are all business funding, but they operate differently. Credit cards is obviously the credit cards we use every day. You spend a credit card, pay a minimum payment. every month it could be a fixed some have variable rates right then you have your line of credit right see a line of credit is basically a line of credit So you get approved for a line of credit. Is money actually sitting, credit sitting? So let's just say you get approved for a $10,000 line of credit. That is sitting in the bank until you want to pull from it. So you can pull anything up to that $10,000. You can pull $1,000 and just use that $1,000 and pay that back. A business loan is now, say you get approved for that $10,000, they give you all of that $10,000 at once, and you have to pay on that $10,000 immediately. What we like to tell people, when you're going for business funding, most of the time let's do, Credit cards and lines of credit first. So because that money, you don't have to immediately pay back until you use it. A business loan, as soon as you get approved, you're going to have to pay that money back next month. Speaker 2 (2:51) But it's all funding under one umbrella. And not only that, from the business credit cards, you should definitely do 0 % interest business credit cards first, right? Because a lot of people, they'll go out there and get credit cards and not know that you can get a 0 % interest credit card first. They have 0 % interest for nine months. 12 months, even 18 months. So now you're paying literally 1 % of what the card usage is. So if you have a $50,000 credit limit and you use $50,000 for the next 12 months, you only pay 1 % of that, which would be $500 for the next 12 months. So you would have been able to use $50,000 and only pay $500 for the next 12 months. Speaker 1 (3:30) Can a brand new business get funding? Speaker 2 (3:33) Absolutely. So the Speaker 1 (3:34) funding Speaker 3 (3:35) we talk about is leveraging your personal credit to get business funding. Because for the majority, business funding doesn't report to your personal credit. So starting at LLC, in the first 30 days, as long as you have at least a 680 to 700 credit score, you can get up to 100,000 plus of business funding. So we like to teach people how to leverage their credit, build their credit reports properly to be able to access funding. But of course, you got to pay that money back. So we like to teach people how to make money because it is debt at the end of the day. Speaker 1 (4:04) It Speaker 3 (4:04) is not just money. It's interest on that money. So, okay, Speaker 1 (4:07) wait. Good debt or no debt? Speaker 2 (4:10) So it's good debt. It's good debt. But what's Speaker 1 (4:13) better, good debt or having no debt? No, Speaker 2 (4:15) good debt. Speaker 1 (4:16) Yeah. Speaker 2 (4:16) Good debt is definitely better. Leverage. Let's just use the word leverage. Exactly. And I was going to say that. Speaker 3 (4:20) So leverage is the key word, right? Because a lot of people using a personal cash, almost every, unless you Elon Musk. Unless you Jeff Bezos, you have a limit. You have a limit if you use your personal cash. But even they leverage, even they borrow. So if the multi, multi, multi billionaires borrow money from the banks, why wouldn't you use the same strategy? Speaker 3 (4:45) It can be bad if you don't understand how to make money leveraging it. Speaker 1 (4:50) Do you guys teach this? Do you have a program where people can learn this? Speaker 2 (4:54) Of course. Of course. So we do. But the purpose of us doing this and speaking on podcasts is so that we can educate you not to only just, hey, come to our program. It's in the sense so that you can understand what to do with the money. Yes. Because a lot of times people, and like you said, they'll... They'll realize, hey, it's money, it's money, but you need to put it into something so that it can further duplicate that money, right? Further multiply whatever you're getting in that funding in order for you to now be able to use it for something else. Like you said, real estate, group homes, there are multiple different strategies that you can use the money for so that you can go ahead and actually get, you know, so you can actually start making money from whatever the money is specifically. Speaker 1 (5:37) So can you get business funding without being a millionaire? Speaker 2 (5:41) Absolutely. Speaker 3 (5:42) But you have to have the plan, right? So you don't have to have $100,000 in the bank to access $100,000 from the bank. Now, if you live in America, all you have to have to do is a good credit score. A good credit score, the right structure, the right plan. You can get $10,000, $20,000, $30,000, $100,000 from the bank. So you don't have to be a multimillionaire. You don't have to have a bunch of money in the bank. you can access capital just by leveraging your personal credit score. Speaker 1 (6:10) That's bad. What's the biggest reason people get denied funding? Speaker 2 (6:17) Well, one of the biggest reasons people get denied funding, first of all, is because of their credit. So a lot of times people don't understand that you actually have to put up some type of leverage in order for you to get the capital that you're looking for from the bank. So the banks operate in three C's, whether it's credit, that's one. Two is collateral. Speaker 3 (6:40) And Speaker 2 (6:40) then three is cash flow, right? So if you don't have the credit, meaning if your credit is not the 680 or 700 brand I mentioned before, then you possibly won't get approved because your profile is not good enough or strong enough in order for you to get approved. And then two, if you don't have the collateral, right? So if you don't have a house or a boat or something that can act as some form of collateral for the bank so that if they do want to possess something, they can sell it back and get a profit from it, then they... they just won't give you the funding. Or third is the cash flow. If your business isn't making enough money in order for them to be able to say, okay, based upon the trajectory and based upon what you've done in the past, then this is why we will give you more money. So that's a lot of reasons why people get denied. First of all, is that credit piece? And then those other two factors as well. Speaker 1 (7:31) This is so interesting. I feel like I'm like. For someone who's new today, they're probably going to sit here and be like, okay, so this is new to me. Or maybe someone's already learning about it. Right. And then they want to go out there and go to the bank and make sure that their credit's good. Yes. Speaker 2 (7:46) All Speaker 1 (7:46) that stuff. Speaker 2 (7:47) Yes. So Speaker 1 (7:48) is using debt to build wealth smart or dangerous? Speaker 3 (7:52) Probably the smartest thing you can do. So we've been teaching credit and funding for a lot of years. What we realized what we had to do is start doing business coaching. Because we were getting a lot of people a lot of money, right? And for a while we thought we were doing something great. But we realized they were getting into more debt because they didn't have the plan. They didn't have the plan. So now we said, I'm not just going to get you the money. I'm going to teach you how to really grow your business. I'm going to teach you how to take one and make $10. I'm going to teach you how to take $10 and make $100. So if you want $100,000. Don't just come to me and say I want $100,000 with no plan. I'm going to show you how to take that $100,000 and make a million dollars out of it. Beautiful. Because I don't want to get you a lot of money, a lot of credit, a lot of credit cards, and turn it into bad debt. Let's leverage that, make it good debt, because it's good debt when it makes more money, when it's of value. It's bad debt when you're overleveraged and can't pay it. That's the biggest differences. Speaker 1 (8:51) So why do wealthy entrepreneurs use LPM, other people's money, instead of their own? Speaker 2 (8:58) Because like Brandon said before, right? If we're not at Jeff Bezos or Elon Musk, that cash is going to run out, right? You can make $100,000 in your business, let's say last year. You probably won't have that same $100,000 inside of