Financing In Name Of Corporation

I am in the process of forming an "s" corp with a partner to build and hold investment properties. I seem to hit a wall when I ask the lender about financing in the corp name instead of my own. Anyone had experience in obtaining financing like this?

Comments(2)

  • alubeck7th October, 2003

    You will likely be limited to 80% of purchase price when purchasing in a corporate name. You should look at some commercial notes with your banker - they're 20 year LIBOR usually, but we've been able to uses teh property value as basis (not the purchase price) which dramatically improves cash flow.

    What are you doing with your properties?

  • Bulafan7th October, 2003

    We want to accumulate rental property but hold it in the corporate name for some liability protection. We would have about 80% ltv using appraised value. Hadn't tried to talk to a banker about commercial financing. Thanks for the tip. I'm assuming that works for residential property?

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