It will likely be as difficult as obtaining credit as it would for a new high school graduate with no credit history, and no income history. The lender will require a history indicating that the entity borrowing the money is credit worthy, and that an income history indicating that there is an ability to make the payments. Just like they do when lending to an individual.
My guess is yes, it will be difficult. Start building credit in your LLC as soon as possible.
Sorry,
Jeff[ Edited by jeff12002 on Date 01/10/2005 ]
All indications point to the benefits/safety of utilizing an LLC when REI, particularly when tenants are involved.
I personally have excellent credit and have already lined up several avenues for financing my ventures. I am concerned that if I form an LLC, I will lose this position.
I personally have excelent credit and a two year old LLC and have had a rough time getting financing thru my LLC about all I have been able to do is get a personal loan and then can transfer ownership of th property to my LLC to get some of the liability away from me personally.
I would reccomend using some of the credit card offers you should be getting that come to the business name. I formed my LLC 6 months ago and at least once a week get an offer to be in the name of the LLC.
[addsig]
I have only tried a couple of times, but I haven't had any problem obtaining loans in the LLC's name, and my personal signature. i.e its in the LLC's name, but if there is a default they are coming after me.......
1) I have two rental properties under my name! How can I tranfer them under an LLC?
2) Can it be done?
3)If it does happen, will the history of the properties go under the LLC making my LLC credit stronger?
4) or will the poor credit in my name tranfer over with the good property credit? or will they stay seperated?
5) How can you build LLC Credit if your personal credit is sloppy?
I am a soldier stationed in Baghdad Iraq looking to get deeper into REI, your help will be greatly appreciated!!
Quote:
On 2005-01-10 17:07, tcbdlb wrote:
Will I have difficulty obtaining financing with a newly formed LLC?
What type of financing are you speaking of? If you're planning to purchase homes under the LLC I suggest you pose your question to mortgage brokers. I am trying to setup an LLC primarily to purchase investment properties for profit and have the same concerns. It can be done you just have to be creative!
1) I have two rental properties under my name! How can I tranfer them under an LLC?
- You can use a warranty deed in Florida to do this
2) Can it be done?
- Yes
3)If it does happen, will the history of the properties go under the LLC making my LLC credit stronger?
- No, having something deeded to the LLC doesn't improve credit, only if you put loans in the name of the LLC would it help
4) or will the poor credit in my name tranfer over with the good property credit? or will they stay seperated?
- Not sure what you mean, deeds have no bearings on credit, only loans
5) How can you build LLC Credit if your personal credit is sloppy?
- After you form the LLC, you can call around to see if you can get a small business loan and check out credit card offers that you receive for the business
I am a soldier stationed in Baghdad Iraq looking to get deeper into REI, your help will be greatly appreciated!!
- God bless you, take care
[addsig]
Thanx for the advise everyone, I really appreciate it.
This question is for RAY, Do you do any envesting in JAX?
I currently live in JAX, How much is your fees for becoming a member of your envestment group?
I'm very, very interested! I'm getting ready to come back to the states really soon, in the next month or so. If you can, can I email you or give you my email address? I don't want to break any rules or anything. I have more questions I would like to ask you!! Thanx for your help once again! I would leave my email address but I don't no If I'm breaking the rules of TCI! Hope to hear from you soon!
Hey everyone,
Regarding business credit, go to www.creditboards.com. They have a business credit section which will explain everything you ever wanted to know about business credit.
Like alot of people, I have had a business (corporation) setup for five years, but I never paid much attention to my business credit. Within the past six months, I have made an effort to establish credit in the business name. I have obtained over $200k in lines of credit and credit cards to date. Many of the cards or lines of credit required me to provide a personal guarantee. The benefit of these business accounts is that you have access to quick cash, but they do not report on your personal credit which would normally tank your score if you use too much of the available credit. Check it out, you'll be glad you did.
It will likely be as difficult as obtaining credit as it would for a new high school graduate with no credit history, and no income history. The lender will require a history indicating that the entity borrowing the money is credit worthy, and that an income history indicating that there is an ability to make the payments. Just like they do when lending to an individual.
My guess is yes, it will be difficult. Start building credit in your LLC as soon as possible.
Sorry,
Jeff[ Edited by jeff12002 on Date 01/10/2005 ]
Thanks for the reply.
All indications point to the benefits/safety of utilizing an LLC when REI, particularly when tenants are involved.
I personally have excellent credit and have already lined up several avenues for financing my ventures. I am concerned that if I form an LLC, I will lose this position.
Any further thoughts?
I personally have excelent credit and a two year old LLC and have had a rough time getting financing thru my LLC about all I have been able to do is get a personal loan and then can transfer ownership of th property to my LLC to get some of the liability away from me personally.
I would reccomend using some of the credit card offers you should be getting that come to the business name. I formed my LLC 6 months ago and at least once a week get an offer to be in the name of the LLC.
[addsig]
I have only tried a couple of times, but I haven't had any problem obtaining loans in the LLC's name, and my personal signature. i.e its in the LLC's name, but if there is a default they are coming after me.......
Typically you can do a personal guarantee for an LLC which will make it you that is on the line in an even of a default.
Hello,
I have a few questions?
1) I have two rental properties under my name! How can I tranfer them under an LLC?
2) Can it be done?
3)If it does happen, will the history of the properties go under the LLC making my LLC credit stronger?
4) or will the poor credit in my name tranfer over with the good property credit? or will they stay seperated?
5) How can you build LLC Credit if your personal credit is sloppy?
I am a soldier stationed in Baghdad Iraq looking to get deeper into REI, your help will be greatly appreciated!!
Quote:
On 2005-01-10 17:07, tcbdlb wrote:
Will I have difficulty obtaining financing with a newly formed LLC?
What type of financing are you speaking of? If you're planning to purchase homes under the LLC I suggest you pose your question to mortgage brokers. I am trying to setup an LLC primarily to purchase investment properties for profit and have the same concerns. It can be done you just have to be creative!
Hi Mrwal9, try to tackle your questions.
1) I have two rental properties under my name! How can I tranfer them under an LLC?
- You can use a warranty deed in Florida to do this
2) Can it be done?
- Yes
3)If it does happen, will the history of the properties go under the LLC making my LLC credit stronger?
- No, having something deeded to the LLC doesn't improve credit, only if you put loans in the name of the LLC would it help
4) or will the poor credit in my name tranfer over with the good property credit? or will they stay seperated?
- Not sure what you mean, deeds have no bearings on credit, only loans
5) How can you build LLC Credit if your personal credit is sloppy?
- After you form the LLC, you can call around to see if you can get a small business loan and check out credit card offers that you receive for the business
I am a soldier stationed in Baghdad Iraq looking to get deeper into REI, your help will be greatly appreciated!!
- God bless you, take care
[addsig]
Hey,
Thanx for the advise everyone, I really appreciate it.
This question is for RAY, Do you do any envesting in JAX?
I currently live in JAX, How much is your fees for becoming a member of your envestment group?
I'm very, very interested! I'm getting ready to come back to the states really soon, in the next month or so. If you can, can I email you or give you my email address? I don't want to break any rules or anything. I have more questions I would like to ask you!! Thanx for your help once again! I would leave my email address but I don't no If I'm breaking the rules of TCI! Hope to hear from you soon!
Protecting our Freedom!
Sgt Walker
Hey everyone,
Regarding business credit, go to www.creditboards.com. They have a business credit section which will explain everything you ever wanted to know about business credit.
Like alot of people, I have had a business (corporation) setup for five years, but I never paid much attention to my business credit. Within the past six months, I have made an effort to establish credit in the business name. I have obtained over $200k in lines of credit and credit cards to date. Many of the cards or lines of credit required me to provide a personal guarantee. The benefit of these business accounts is that you have access to quick cash, but they do not report on your personal credit which would normally tank your score if you use too much of the available credit. Check it out, you'll be glad you did.