Creating business (LLC) credit & renting from yourself

[Jay J.]

ok, I'm not sure what other (sub)forum this would go in, but I guess it could be an innovative strategy, so here goes my basic idea.

1. I have a house worth $140k, I owe $100k.
2. I have an LLC with nothing (no credit card, no assets)

I understand (generally) that in order to initially get 'business credit' for the LLC one must use their own 'personal credit' to secure a loan.  So, what if..

I sell my house to the LLC (assuming financing worked - this would mean the LLC gets financed for my house, with my credit, but the house belongs to the LLC, is that correct?)
Then I rent my house from my LLC.

Wouldn't that start the 'building business credit' process? as well as giving the LLC an asset?

Thoughts..??

[Wayne Brooks]

Understand that the whole "getting credit for my LLC" idea is mostly a waste of time. LLC's can't get conventional loans for houses, so you'd be getting loans with worse terms, and you'd still be signing the personal guarantee anyway.