Aged Shelf Coorporation with line of credit already attached..Please Help!

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Aged Shelf Coorporation with line of credit already attached..Please Help!

Glenn Pelt
Investor · Pawcatuck, CT · Member since 2012 · 12 posts · 2 votes

Hi Everyone, first time poster here in the BP forum, I'm a newer member and investor and love the info on this website. Anyway here is my question. I have been approached by a company that claims to be able to sell me an 5-year aged shelf corporation from California with a 500K unsecured line already open and attached. The cost is 6K...I have read up on the topic and there is a lot of fraud warnings etc from people who are skeptical about it. I know there are a lot of companies that offer these corps with the claim that you will be able to get credit in the future but what about this deal where there is already a line attached to it? Any advice or input would be helpful.

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Joe Bertolino
Investor · El Dorado Hills, CA · Member since 2012 · 1k+ posts · 1k+ votes
14y

I don't care how old the corp is... I doubt you will be able to get you hands on $500k. Maybe a $10.000 equipment lease or something like that but nobody will give you unsecured funding right now. Business lending is still very tight and without collateral and several years of pristine, reviewed or audited financial statements... you are not going to sniff an unsecured loan over $50k much less $500k. If it seems too good to be true... It is.

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  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    14y

    I don't know as I am not an expert on that type of stuff.

    If I had access to 500,000 in an unrestricted line of credit then why would I want 6k from you??

    I could do much more with these 500k lines of credit than getting 6k a pop selling them off.

    I guess if the fee is deducted from the line of 500k and not something you pay upfront it could be okay but then if they want access to your financial data and bank accounts it would be too risky.

    I haven't heard personally of someone using these lines like you are mentioning with any success.

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  • Glenn Pelt
    OP
    Investor · Pawcatuck, CT · Member since 2012 · 12 posts · 2 votes
    14y

    Joel-thanks for the input. Yes the upfront fee is worrisome, they do have a contract that specifically outlines what you will receive, and it says the line is already active and I will have everything in 3-5 days. I am going to have an attorney review the contract but my main issue is whether or not it is possible or if anyone has actually DONE this with any success/failure.

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  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    14y

    How would the shelf LLC get the credit in the first place?

    If a company that has done no business in 5 years can get $500k in unsecured credit, then it must not be hard to get. Why pay $6K?

    On the other hand if it has done anything to earn that credit what other liabilities are attached to the company?

    I would stay away - However if you do try it Please report the results!

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  • Joe Bertolino
    Investor · El Dorado Hills, CA · Member since 2012 · 1k+ posts · 1k+ votes
    14y

    I don't care how old the corp is... I doubt you will be able to get you hands on $500k. Maybe a $10.000 equipment lease or something like that but nobody will give you unsecured funding right now. Business lending is still very tight and without collateral and several years of pristine, reviewed or audited financial statements... you are not going to sniff an unsecured loan over $50k much less $500k. If it seems too good to be true... It is.

    1Reply
  • Jim M.
    Real Estate Investor · Charlotte, NC · Member since 2011 · 252 posts · 56 votes
    14y

    I always though that when the credit bureaus found out there is new ownership the aged part starts over. If you need your company to look older than it actually is these are effective though.

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  • Glenn Pelt
    OP
    Investor · Pawcatuck, CT · Member since 2012 · 12 posts · 2 votes
    14y

    Thanks for the input, here is what ive been told to this point...in regards to Joe' s point ive been told that the company has basically done its own transactions and tax returns to show income over the past however many years. Apparently the companies that sell the shelf corps set it up this way so that it looks like the LLC/Coorp is making money, it also says that there is a personal gaurantor already in place and that person stays on the credit line so that it wont get revoked. When I posed the question as to why anyone would leave there name on the credit line I was told that due to the laws in the states that these LLC's/corps are created only the person who "owns" the llc/corp can be held liable for the credit line if it defaults, not the gaurantor. Hope that helps, anyone who wants more info can send me a private message and I can show you the contract that has been provided to me by the company that sells these.

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  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    14y

    Do they have people you can contact that have used the lines with success??

    If they cite privacy issues run!

    I wouldn't pay 6k to anybody upfront.

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  • Jon Klaus
    Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    14y

    This fails the smell test. You can get up to $500K in debt, personally guaranteed by someone else, for just $6K? Your credit doesn't matter? It would be a stretch even in 2005.

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  • Marc Mackenzie
    Falls Church, VA · Member since 2012 · 1 post · 0 votes
    14y

    I guarantee you this is a fraud, especially given that BS they just fed you about the guarantor staying in place but not being liable. Run away.

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  • Dave M.
    Residential Landlord · Chicago, IL · Member since 2012 · 356 posts · 81 votes
    14y
    Originally posted by Glenn Pelt:
    ...there is a personal gaurantor already in place and that person stays on the credit line so that it wont get revoked. When I posed the question as to why anyone would leave there name on the credit line I was told that due to the laws in the states that these LLC's/corps are created only the person who "owns" the llc/corp can be held liable for the credit line if it defaults, not the gaurantor.

    From the lender's perspective, what is the point of the guarantor in this scenario?

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  • John C.
    Investor · Suwanee, GA · Member since 2010 · 104 posts · 22 votes
    13y

    Hi Glenn I must agree with everyone else this doesn't make a lot of sense. What happened?

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  • Glenn Pelt
    OP
    Investor · Pawcatuck, CT · Member since 2012 · 12 posts · 2 votes
    13y

    I never pursued, listened to my gut and all the advice here and just stayed away

    1Reply
  • Jon Klaus
    Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    13y
    Originally posted by Glenn Pelt:
    I never pursued, listened to my gut and all the advice here and just stayed away

    Good call, Glenn.

    0Reply
  • Roger Couture
    Plano, TX · Member since 2013 · 1 post · 0 votes
    12y

    Glen,

    My name is Roger Couture and I am the owner of a legitimate company that provides both start-up entrepreneurs and business owners with working capital. For start-up entrepreneurs, I offer shelf corps as a vehicle for obtaining working capital. And, I can tell you with absolute confidence that shelf corps, do in fact work.

    However, the industry is fraught with deceptive practices and various forms of criminal activity.

    That said, anyone who offers you 500K unsecured line of credit already attached, along with a personal guarantor is outright defrauding you. It takes time to acquire capital with a shelf corp and no personal guarantor is going to put his or her credit on the line for 6K if her or her could access 500K themselves.

    Nonetheless, please feel free to ask any additional questions.

    Roger Couture

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  • Jacques Hill
    Mc Kinney, TX · Member since 2014 · 2 posts · 0 votes
    12y

    HEY!!!! ROGER COUTURE!!!!!! I'm Jay the guy you met at Chaucers in Allen late last year!!! Vince's buddy.. you educated me about all this shelf corp stuff.. if you still have my number PLEASE CALL ME!!!!you put me in there as Jay Chaucers.. I haven't been able to reach Vince, my phone was stolen and I lost my contacts. I still can be reached at the same number though... I'm ready to incorporate. I've got everything in place now and want to talk to YOU PERSONALLY.. since you know my guy Vince. I HOPE you read this. I know what you did for him and I desperately need it for my company. if you read this and don't have my number... please respond here and let me know something. thanks man.

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  • Walter Shatford
    Investor · Monterey Park, CA · Member since 2016 · 24 posts · 2 votes
    10y

    This is a common scam. 

    That being said, it's not absolutely impossible for someone to sell you a corporation with credit.

    0Reply
  • Tony Lee
    Investor · Durham, NC · Member since 2015 · 1 post · 0 votes
    9y

    Then why would we need the show like Shark Tank on TV! :-) 

    0Reply
  • Edward Donlin
    Canton, NC · Member since 2017 · 1 post · 1 vote
    8y

    Explain this Roger Rabbit Couture 

    https://www.ripoffreport.com/reports/shelfrich/pla...

    1Reply
  • Charles M.
    Montgomery, AL Investor · Member since 2018 · 171 posts · 56 votes
    8y

    Hmmmm, great thread! Lets get the King of Debt, Rich Dad Poor Dad on the line and ASAP! 

    1Reply
  • Michael Justice
    Rental Property Investor · Nationwide Remote Wholesaler · Member since 2019 · 49 posts · 10 votes
    7y

    There are legitimate companies out there that can do it, That's the same method corporate Giants are legitimate doing for Capital have been for years . Google credit ready corporate credit business shelf company no up front fees paid on success

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  • Nate Marshall
    Real Estate Consultant · Evergreen, CO · Member since 2018 · 1k+ posts · 736 votes
    7y

    There are companies in Wyoming that can do LLC's, Corporations and shelf corps for you but neither offer any credit with them. They are eligible for a bank account. You pay more for age.

    0Reply
  • Michael Justice
    Rental Property Investor · Nationwide Remote Wholesaler · Member since 2019 · 49 posts · 10 votes
    7y

    Yes Thank you for the insight@ Nate Marshall I'm looking into Wyoming

    0Reply
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