Posted by Myles on October 22, 2003 at 12:49:00:
Thanks very much JT-IN. I figured this must be the way it’s handled, but at the same time, I still wondered about the protection issue if any problems arose. Even though a corp. is it’s own entity, I guess it always takes an individual(s) credit to act as corporate credit, so the lines between personal and corporate dealings will always be blurred. Thanks again for the reply.
Myles
Incorporation and financing - Posted by Myles
Posted by Myles on October 22, 2003 at 02:18:30:
Is anyone familiar with how new Corporations obtain financing for real estate purchases? Does the lender look at corporate assets, company income, and the Directors credit scores, or all of the above? Since it would be a “new” corporation, am I safe in assuming it would have to depend on the directors credit, income, etc. since the company would not have any revenue/assets yet?
I’d like to incorporate for my real estate investments for extra protection and keep them separate from my personal finances, but I’m not quite sure how “new” corporations obtain financing. (or if they even can) At some point there would be a “first RE deal” under the corporate name, so if I use my own money for that RE downpayment/property (since the corporation is brande new) then doesn’t that blur the lines of personal and corporate money/property, therefore, negating my protection (if problems ever arose) under an incorporation?
Helpful replies appreciated. Thank you.
Myles
Privately Held Corporations - Posted by JT-IN
Posted by JT-IN on October 22, 2003 at 09:31:18:
Myles:
No matter whether you are a new corp or a seasoned one with considerable assets, you can plan on being personally scrutinized and also signing personally for any debt incurred… It is just how it is in the Banking/Lending world these days…
Unless you are speaking of a rather large corp, (25 mil +), or a publicly traded company, the personal financial status of the directors are alsways taken into account when underwriting the loan…
JT-IN