Purchase - Posted by Kikker

Posted by John Corey on May 28, 2006 at 06:16:20:

If you find a hard money lender to do the deal you will likely be able to do the deal in the name of the LLC.

John Corey

Purchase - Posted by Kikker

Posted by Kikker on May 27, 2006 at 09:58:54:

Hi, I have a question. I’m looking to purchase a property that needs rehabbing. The asking price is 10K. The ARV is 65K and it needs 20K worth of repairs. I have a seasonal job. 4 months of work is equal to 1 year wages @ $40,000. I want to establish an LLC, pay cash for the property and then finance the repairs. My though process is that I can establish credit for the LLC and have collateral for future deals. Is this a good idea, and are there any lenders will loan against this property? I will own it free and clear and 52K is 80% of ARV. Who can work this deal? I’m in Tennesse



Re: Purchase - Posted by John

Posted by John on May 28, 2006 at 01:03:40:

Establishing credit for a LLC is a long and slow process usually 2 years or more.

You might find a private lender or a HML to loan 42K on the property. Purchase and rehab it and refinance it when finished to keep as rental or sell and repeat the process. You may have to do this initally in your name untill your LLC is seasoned and credit worthy