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Private Lending & Conventional Mortgage Advice

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Jered Sturm
  • Investor/Syndicator
  • Cincinnati, OH
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470
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Forming an LLC in advance of needing it to season it?

Jered Sturm
  • Investor/Syndicator
  • Cincinnati, OH
Posted Mar 7 2015, 14:38

Hello, 

I am an active REI that has a successful company in OH. In a year and half I will be forming a new LLC operating in a different state where I plan to open and run a separate REI company under another LLC. I remember when I opened my first company The first two years I couldn't get ANY lenders to look at lending to my LLC simply because I hadn't been operating for 2 years they couldn't lend to the company even when it was successful. I don't want to go through that again. So I am posing the question, should I form the new LLC now with no intention of operation under it for another year and half for the sole reason of letting it season for lending purposes?

I understand there will be some minor cost associated with having an active LLC.

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