Patrick,You and any other members of the corp. will probably have to personally guarantee the loan. It is hard for a new corp. to get credit until they have a 2 year history.
We formed our LLC in fall of '03. We paid cash for our first property. For our second property, we obtained a commercial loan (the property is residential). I cannot say we got the best deal in the world, but it is not that bad.
Details:
*20 year term pegged to the 5 year treasury plus 3 points. Fixed for five years than readjusts with a +/- 2 point cap and remains fixed for another 5 year cycle. Repeat. Repeat.
*Big time pre-payment penalties that slowly decrease over the first five year term.
*Every member of the LLC had to guarantee the loan.
*Title held in the name of the LLC *This was our main objective*
We're still learning and are still seeking a bank that will do 30 year fixed with the deed in the LLC's name - with or without personal guarantees.
I have unsecured lines of credit with my bank for my LLC. Basically you start out like a persone and build. The business gets a credit card, then two etc. If you hae accounts you pay them on time and start a history.
There is a faster way, that is to buy an "aged" corporation, one that has been around for awhile. I am negotiating on one that has been in another state for 50 years doing business with banks etc.
FInd someone who is retireing or going out of business and offer to buy their structure for $500-$5000 depending on credit etc.
Interesting Stockpro...we're looking to establish LOC's with a local bank based on equity brought to the table for note purchases. Hadn't considered taking over an existing company with history.
Patrick,You and any other members of the corp. will probably have to personally guarantee the loan. It is hard for a new corp. to get credit until they have a 2 year history.
Patrick,
I have no clue how that can be done.
Call me @ "DELETE"
Beau Driggers[ Edited by JohnLocke on Date 02/17/2004 ]
Patrick,
We formed our LLC in fall of '03. We paid cash for our first property. For our second property, we obtained a commercial loan (the property is residential). I cannot say we got the best deal in the world, but it is not that bad.
Details:
*20 year term pegged to the 5 year treasury plus 3 points. Fixed for five years than readjusts with a +/- 2 point cap and remains fixed for another 5 year cycle. Repeat. Repeat.
*Big time pre-payment penalties that slowly decrease over the first five year term.
*Every member of the LLC had to guarantee the loan.
*Title held in the name of the LLC *This was our main objective*
We're still learning and are still seeking a bank that will do 30 year fixed with the deed in the LLC's name - with or without personal guarantees.
Question, what is the point of having the proerties in the LLC name if you are personally guarenteeing them as well. ?
Newbie question
Thanks
I have unsecured lines of credit with my bank for my LLC. Basically you start out like a persone and build. The business gets a credit card, then two etc. If you hae accounts you pay them on time and start a history.
There is a faster way, that is to buy an "aged" corporation, one that has been around for awhile. I am negotiating on one that has been in another state for 50 years doing business with banks etc.
FInd someone who is retireing or going out of business and offer to buy their structure for $500-$5000 depending on credit etc.
Interesting Stockpro...we're looking to establish LOC's with a local bank based on equity brought to the table for note purchases. Hadn't considered taking over an existing company with history.