Personal Debt Can Disappear when you set up a Corporation?

Financing, Hard Money Lenders, Private Money
1

Personal debt can disappear when you set up a new business
name on paper .

You then move your personal debt into the business name.

This will dramatically improve your personal credit score and
help you make more money as a real estate investor.

When you start receiving these business credit cards
and lines of credit you can transfer your personal credit card
balance onto your new business card. And make your personal debt
reported on your credit report as paid.

The one think I learned when running credit reports for clients is that the amount of credit you have available increases your credit score.
(i.e, a 5,000 credit card that is paid or has a low balance.

You still must repay the business debt but with your real estate profits you will have the money to do this.

The power of this technique is that your credit score will go up when this personal debt gets transferred out of your name and into the name of a new business.

And you will keep your personal credit score high when you
continue to go out and get business lines of credit to use for
your real estate investing activities.

Setting up new business lines of credit is the most important
thing you can do to PROTECT yourself as a real estate investor.

Because these business credit cards and lines of credit allow
you to draw cash from them to keep as a reserve when you
are buying, rehabbing, or just holding rental property.

You MUST make sure you keep adequate cash reserves for
the unexpected issues that ALWAYS come up when you own
real estate. Establishing credit for your business is an important step

Do you agree or disagree…

2

I have not heard of this- my understanding is that you must still personally guarantee financing for business ventures by your corporation. This would definitely hold true for the first two years the corp is in existence.

I do know that one of the keys is to establish business credit. This can be done through Dun and Bradstreet.

However, if you buy a house, for example, in the name of a corporation, this would be considered a commercial loan. Does anyone out there know of a lender who will allow you to buy in the name of a corp and have it be a residential loan?

The way we have always done it is quit claim deeding the property into the name of the corp after closing. This is mainly for legal reasons. However, the mortgage is still personally guaranteed, and the only way to change that would be to refinance, then you are talking commercial loan again.