How Can I Finance In My LLC's Name
Hi all.
I am new to real estate investing. I have the opportunity to buy a condo for $75,000. It has a current long term renter with a solid payment history. It rents for $1300 monthly. I have just formed an LLC. What I would like to do is buy the property in the LLC's name (even though I understand I will have to be a co borrower). I want the LLC to establish a credit history, but none of the banks/mortgage companies here (Savannah, GA) seem to make loans to LLCs. Any suggestions/help would be appreciated.
Often it is not that a bank doesn't make loans to LLC's.
Most lending institutions have policies about lending to corporations and LLC's.
Give us some details about your LLC:
- How long has it been in business?
- Do you have a business plan?
- Did you present the bank with an Income Statement and Balance Sheet?
- Did you show the bank a proposal for the loan and how they are to make thier money?
If you have done those things and still get no response, you might want to look into getting a credit card for the LLC and slowly build up the credit for it.
Stormy
Hello sa1966,
You can get a loan under a LLC, however it will have to be a commerical loan. Commerical loans are a little bit different than the residential loans that most REI use. The rates are structured on adjustable terms. You have to put up more of the corperations money as a down payment. You will need a business plan. There are so many things that you will need to complete in order to purchase under the corperation name that you will wish you had the financial backing of a large corperation.
I would not pursue this route to REI, until I got so large that I became a true corperation.
Stormblade/Vern,
Thanks for the advice. I realize since the LLC is new I need to establish it first. I am taking classes from the local SCORE to learn how to properly make a business plan ( I had one in my mind, but banks need more than that). I have opened a bank account and will apply for a credit card for it also. For now I will buy the property personally, deed it to the LLC and allow it to build a cash flow history for the next year or so. I think I will probably buy the next property personally as well and hopefully in about 3 yrs be able to by through the LLC. Wish me luck- I am learning a lot every day.
I have a web-site for you to help build buisness credit. e-mail me
raj211, your personal information is not provided in your profile. Can you private message me the website you are referring too.
raj,
There is no email info listed for you so I can get the website you spoke about. Please email me the website.
Hi Raj
business credit hey may I please have that web site too. email me
Dave
as noted there will be a lot more hoops to jump thru any time a corporation is involved.
well come to the world of paper work
John
I used to be a business banker for a large bank. A few thoughts regarding commercial loans:
Typically they are ammortized over 15-25 years with a balloon in 5 years. The owners and business must cash flow with a cash service of 1.25. this in and of itself, elimates the majority of people from getting commercial loans. Of course the benefit is that the property is listed under the LLC's name.
The thought of deeding it over to a LLC will work as long as you paid cash. If you did not, and got a conventional loan, deeding property may invoke the due on sale clause. Of course, you may be able to get around that by placing it into a trust.
Good luck
Derek
Raj,
email me the website, like to see what is out there.
Quote:
On 2003-08-24 16:54, Raj211 wrote:
I have a web-site for you to help build buisness credit. e-mail me