can you buy a home using your business credit instead of personal profile,I already have a home but i have a few late payments on my mortgage I have a small bz i want to start buying properties is this possible?
Does your business have credit? Is it a Corp or just a DBA sole proprietorship? Your Corp can borrow money but if it has no credit of its own you will still have to sign personally for the loan and the lender will look at your credit mostly. Hard money loans may be the way to go.
It is possible to secure lines of credit for your new LLC as long as you have a tax Id # and your personal credit isnt in shambles.
Hard money lenders are good to use however it is an alternative to use business lines of credit through banks and this generates your business credit standing as a result.
There are those who would say “well ok…but who needs banks and who needs there credit?” this is true to an extent.Having credit means that you wil instantly put money down on a property and SECURE It!
The reality is that you need to secure the property before someone else does and this is one reason why to use credit.You just wait for your hard money lender to send you a check after going over your info that you sent them for the property (which takes time) and then your home free!
Just remember to be smart and add your subject to clauses in your contract to CYA, and the rest is easy.
This is just one of many ways of doing business. Good Luck!
My understanding is Lenders do not issue conventional loans to a LLC. You would only be able to use line of credits or hard money lenders in the case that you are purchasing property. Is this correct??
Yes that is true.
i have a tax id nbr,can i just use that when working with hard money lenders,my plan is to get foreclosure at below market value then do rent to own for 2yrs then sell to tenant and get my difference and go on to the next deal,is hml good for buying foreclosure or should I be going through regular banks?
If you can use regular banks you would want to avoid the HML’s. The interest rate would be about half or better and the points would be about 80% cheaper or better. Banks on the other hand will require a lot better credit and more cash out of your pocket and probably will not do some of the more major rehab deals. It is kind of a crap shoot. you need to ask around and meet several loan offers and get a feel for what they can and will do. Another thing to keep in mind is HML’s want quick turn around and most will only want to play for a year or less. if you can turn the same money over for them 4 times a year they will be your best friend.
Hope this helps. LOL
Yes you can use your tax id number with HML but they don’t really care to have it.
HML are good for buying if you are doing a fix and flip
Banks are good if you are going to hold
You could also get home via Subject to
and NO credit or loan is needed in this arena