Starting LLC for Real Estate Investing

5 Replies

Hey guys so I've been reading about starting my own LLC to get to a point where I can open a Business Line of Credit to help fund my BRRRR Investing. I connected with someone who is a credit builder and said he could open the LLC, register my

Business credit with Experian, Equifax, and Dunn and Bradstreet using SBA Lender best practices, business funding prep, and also help build my personal credit score up for around $1900. I’ve done all the reading about buy and holds and hml and investing and all ways of getting private lenders. I think this could be a solution for me to get me the money I need for the investing. The questions I have are:

1. Could someone explain to me what this process of LLC To build BLOC or what I'm getting involved in is in the most simplest of terms?

2. Is this a good idea for someone who needs the funding to do their first investment property (BRRRR Strategy) ?

Thanks guys

@Steven Brooks I would put that $1900 to buying a property. As far as I know, you will need an investment property(collateral), be an accredited or experienced investor($1 mill net worth/experience investing) or have an established *profitable* business already for a business line of credit. Perhaps this individual has some other way to guarantee the line of credit but without some kind of collateral, experience or net worth I don't think this is doable. If you find out otherwise, share the wealth of information!

A much more lucrative strategy would be to partner with someone with capital and apply the BRRRR to a property in a JV agreement, LLC ownership 50/50, etc. Or use the $1900 to down payment on a cheaper property which you house hack, or use for rehab, or interest to a private lender who supplies the funds. You do not need a business to buy a property and in my opinion do not need to pay someone at this point to build you a business. Hope that helps!

$1900?! For starters, you can go the the PA Secretary of State website and register an LLC for $125. Do it yourself. It's easy.
As for credit repair, go to www.creditforums.com.  Do it yourself.

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I think that $1900 can be spent better elsewhere. From my understanding, it is not as simple as opening an LLC and getting a line of business credit. Sure, you can open business credit cards, but everything is still tied back to you personally. Plus, you'll already need a profitable real estate investing business. At that point, you can HELOC instead.

In my opinion from actually working on both sides on this fence (REI 2017-current & Credit 2014-current). Please do some more research this sounds fishy on what guy is offering This is not easy as you read on paper please believe. I have so many ?'s it's crazy, but also do not want to make judgement before hearing all details. Best wishses