Buying real estate through a company
We are just taking baby steps and God-Willing, closing on our first deal next week. Its a 2-family REO. We would like to form a corporation through which we would like to buy more deals . How do we get started after forming the company ? How do we grow company credit and get a loan approved in the company's name? Any advice in this direction is greatly appreciated. Thanks in advance
Most Popular Reply
Hello,
Your best bet is to seek a private equity partner or private lender and secure their interest against the property in exchange for 60-65% loan to cost. This provides protections to the lender so there is adequate equity to sale the property in the event of default. This also allows you to continue to purchase while other properties go through your inventory cycles (evictions, renovation, escrow). Best of luck. should you have questions on this methodology, please contact me.
Jonathon