Funding through an LLC
Quick question for my fellow rehabbers out there... Over the last couple of years, the volume of transactions that I have been doing in the rehabbing/flipping arena has escalated substantially from past years. As my "training wheels" have come off, I have found that I can do more deals at once than I used to and have been taking advantage of the added income opportunities. I have noticed the disturbing trend, however, that my credit score has been slowly but steadily declining over the last year. My mortgage guys are telling me that this is due to the fact that I am accumulating properties (I buy for long term buy and hold rentals as well) at an increased rate. Some of my colleagues are touting the benefits of purchasing properties through your LLC in order to avoid this problem. I am already familiar with the concept of quit claiming your property to the LLC once it is financed and purchased for liablility and tax reasons, but I am finding lately that since the collapse of sub prime it is becoming really difficult to find lending institutions that will lend to an LLC unless it is extremely well seasoned with good D & B ratings, etc.
I am wondering if there is anyone out there who is currently financing properties in the name of their LLC without a personal guarantee and, if so, if you can share what instituions you are working with (especially recently) and the details of how long you have been in business as the LLC, how you built your business credit, etc.
Thanks in advance for any insight into this.
Tamara