Companies borrow money all the time. What kind of company do you have and how old is it. You should start small and build it up. Visa is one creditor that will loan to companies and Mastercard is another. I am doing a hard money loan with my company but the lender knows I have a good reputation and knows what I am doing.
Good LUCK and Thank You
Hope this helps some
Ted Jr
Hey! What a great question. I am dealing with the same problem and would love to hear THE TRUTH. The banks have been telling me that I have to do the loan in my own name to make it easy and guarantee that I get the loan on property. I complain that I would like to buy it in my LLC and my conservative banks just say no and the investor friendly banks have told me I can buy it in the LLC buy giving them a personal guarantee, in the same breath they also tell me not to do it this way because a am creating more paperwork to get the loan as well as increasing the risk that I will get the loan.
All the loan officers I speak with are not real helpful on these topics, like they don't know for sure??? I have an RE attorney working on a transfer for RE I currently bought in my name. He is moving it into my LLC. This is all a joke to me that between lawyers and loan officers I can't get a clear anwser on how to buy. I had one guy tell me that if I keep buying in my own name that these mortgages attached to my SS# and on my credit report will end up hurting my credit and loan ability in the future. He also said that if I buy through the LLC attaching those loans to the EIN # vs. my SS# that my credit would stay great and that I could use that great credit report to personaly guarantee these loans in the LLC. I don't know and I hate this kind of crap that we have to sort through to be investors.
I would love to hear anyone elses experience on entities and loans
Thanks
The only way i can see building up LLC credit ..would be to get a secure company credit card......and mabye also tranfer any current revoling accounts into the new LLC via cell phones etc.
My friend just started a business so he is brand new . He just incorporated and wanted to get some start up credit in his Company name
He was planning on buying a new van for business. His attorney and accountant says to get the van in your Company name. He tried banks and they would not do it. They would , however, lend him the money on a secured money market acct or CD or savings. Big Deal! and at 9 something %
He finally was able to buy the van with GMAC financing at 5% and in the company name .He is the guarantor of the loan
His attorney said this would be ok liability wise and to build the credit
It takes a LONG time to build up company credit. I have a C Corp for a non RE business I own. I have had this company for 7 years and up until last year I had to sign for almost every debt personally as well.
LLC's are even tougher as they are flow-through entities to individuals. I started my RE LLC about a year ago, have done 10 deals under that LLC and still have to sign personally for any financing. It's just the nature of the beast. BTW my credit is 760+.
Companies borrow money all the time. What kind of company do you have and how old is it. You should start small and build it up. Visa is one creditor that will loan to companies and Mastercard is another. I am doing a hard money loan with my company but the lender knows I have a good reputation and knows what I am doing.
Good LUCK and Thank You
Hope this helps some
Ted Jr
Hey! What a great question. I am dealing with the same problem and would love to hear THE TRUTH. The banks have been telling me that I have to do the loan in my own name to make it easy and guarantee that I get the loan on property. I complain that I would like to buy it in my LLC and my conservative banks just say no and the investor friendly banks have told me I can buy it in the LLC buy giving them a personal guarantee, in the same breath they also tell me not to do it this way because a am creating more paperwork to get the loan as well as increasing the risk that I will get the loan.
All the loan officers I speak with are not real helpful on these topics, like they don't know for sure??? I have an RE attorney working on a transfer for RE I currently bought in my name. He is moving it into my LLC. This is all a joke to me that between lawyers and loan officers I can't get a clear anwser on how to buy. I had one guy tell me that if I keep buying in my own name that these mortgages attached to my SS# and on my credit report will end up hurting my credit and loan ability in the future. He also said that if I buy through the LLC attaching those loans to the EIN # vs. my SS# that my credit would stay great and that I could use that great credit report to personaly guarantee these loans in the LLC. I don't know and I hate this kind of crap that we have to sort through to be investors.
I would love to hear anyone elses experience on entities and loans
Thanks
Thanks for the reply.
The only way i can see building up LLC credit ..would be to get a secure company credit card......and mabye also tranfer any current revoling accounts into the new LLC via cell phones etc.
My friend just started a business so he is brand new . He just incorporated and wanted to get some start up credit in his Company name
He was planning on buying a new van for business. His attorney and accountant says to get the van in your Company name. He tried banks and they would not do it. They would , however, lend him the money on a secured money market acct or CD or savings. Big Deal! and at 9 something %
He finally was able to buy the van with GMAC financing at 5% and in the company name .He is the guarantor of the loan
His attorney said this would be ok liability wise and to build the credit
Here's 98% of what you need to know on this subject:
http://www.creditboards.com/phpBB2/viewtopic.php?t=7571
It takes a LONG time to build up company credit. I have a C Corp for a non RE business I own. I have had this company for 7 years and up until last year I had to sign for almost every debt personally as well.
LLC's are even tougher as they are flow-through entities to individuals. I started my RE LLC about a year ago, have done 10 deals under that LLC and still have to sign personally for any financing. It's just the nature of the beast. BTW my credit is 760+.
[addsig]