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.