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shell1ton

Will this strategy help establish an LLC's credit?

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I am not sure if this would belong here or in the legal section, I also need to address the question of whether or not an LLC can do business out of state w/o registering in that state.

 

For now, I will stick to the financial aspect.

I have an LLC that is about a year old, registered in Louisiana.

I have approached my favorite local mortgage broker about financing rental properties through my LLC, and she said flat out that I will not be able to get a loan for my LLC, that I would have to base it off of my credit, income, etc.

 

I am currently looking at a package deal of resort rentals in Oklahoma, and I am trying to aquire them in a 12 month lease/purchase option deal.

 

So here's the question...

If I am able to get the sellers to agree to put it in the name of my LLC, and run all of the operating monies through the LLLC's bank account, will this help establish a credit record for my LLC?

Would it help to convince a lender to allow me to finance through my LLC at a later date?

 

Thanks.

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Anything that is run through the LLC will help you establish credit (CC, gas card, checking, etc) and of course time. However, most lenders/sellers will not let you put a loan in the name of your LLC unless you have 2 plus years of established credit if not more. If I were you I would simply conduct your purchase through your personal SS# until such time as your LLC has sufficient credit established.

 

In the mean time make sure you do a quick deed title transfer in order to take away the liability from your personal SS#.

 

Good luck,

Steve

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