I did extensive research on shelf corps and lines of credit for the same reasons you alledged for your purchase. Over a two year period this is what I learned and concluded about shelf corps:
Most of the vendors are theifs,
the shelf corps were created with false/made up information to obtain their paydex scores,
if a person were to use these made up stats on the shelf corp to obtain a loan or mortgage, I believe they are commiting mortgage fraud.
As you know, mortgage fraud is serious and if you take the position that it is only true if you get caught and most do not, then you are only fooling yourself! There is way too much money available, like 7 trillion, just in IRAs that can fund your deals without such nonsense.
One humble man’s opinion from outside the bars of a jailhouse and planning to stay that way!
You are right on the money. Regardless of the paydex score no bank is going to loan money to a real estate investor (corporation or not) without multiple years of tax returns showing strong income. With that being said it is possible to build up business credit in a legal albeit slow way that a real estate investor can make use of. Companies like Staples will allow you to set up business accounts that can be used for marketing materials, and Home Depot for repair materials during a rehab. Hope this helps.
Unless the corporation in question is currently publicly traded on a major exchange the banks will still require a Personal Guarantor and that PG will still have to qualify. WITHOUT EXCEPTION! With that in mind does it still make sense to buy a “shelf corp” with all the liabilities discussed above?