I have seen ads that says use your business credit to buy properties so your personal credit is maintained.
I been to D&B and they seem to endorse that too. But how do you go about getting business credit in credit card using tax id and not personal SS number?
After creating an LLC or Corp and obtaining a tax ID # then apply for something small like a Home Depot credit card under your company name. This will establish your company’s credit file and you can build from there. It’s just like establishing personal credit, it takes time.
The problem is that most lenders will not lend to LLC’s for homes, and the ones who do have very low LTV requirements. The best I have seen is 80%. The other thing is that you will still have to personally guarantee the property. The non-recourse loans that I have seen are only for one million or more.
what you can do though is get a LOC in the buisness name, use this as a down payment for the home. buy the home in your name, say its a flip…sell the house. repay the LOC… do this a few times and you will be able to get a LARGE line from your bank…i have had them up to 680K.
so no, you dont ever buy the home with a mortgage in the LLC, you title the home in the LLC with a cash purchase, using your LOC for the cash.
if its a long term hold, Refi in the LLC by quick deeding the LLC onto the deed with you. you will still be tied to it, for the first couple, the more you get the easier it will be to get it all in the LLC.