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?
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?
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?