Jeanette, Home Buyer in Beverly Hills, CA

i have a LLC, and i'm trying to build corp. credit. how can i buy real estate with no money down?

Asked by Jeanette, Beverly Hills, CA Thu Jan 26, 2012

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Lek A. Bhanubandh’s answer
Hello Jeanette,
To build credit on your LLC, start by applying for a credit card with your LLC name, and the Federal Tax I.D. no. which you applied and have been given by the IRS. You may also have to add a social security no. in the application, but the credit card should be a business application not personal. Have a sales forecast for 2012 on file for the LLC with marketing, sales plan, and you should know your expenses. On a separate issue, with regards to buying real estate with no money down, one of the ways is to negotiate with the seller of the home that they accept your note for the down payment, and assume the existing loan of the seller. In today's market and any other market for that matter, finding this exact scenario is challenging, because the seller, should have the existing mortgage which is assumable. A better technique in today's market is for you to find a cash investor to work with you in a joint partnership, whereby you would be the one locating the property either REO or Short Sale or Standard Sale and you would do the leg work in the locating, buying process and possibly fixing it up and the cash investor would finance the purchase 100%, and form an agreement with you beforehand, to split the profits when you resell at a later date, or any other type of compensation.
0 votes Thank Flag Link Wed Feb 1, 2012
It sounds like you have purchased into a scam, the banks used to fall for it to some extent. they hgave you buy the LLC or Nevada Corp or whatever, and you get the exact same credit that you would have gotten had you not done all of that.
0 votes Thank Flag Link Fri Jan 27, 2012

Is this an investment strategy that you learned by attending a seminar designed to teach you how to get rich in real estate?
0 votes Thank Flag Link Thu Jan 26, 2012
You can't buy an investment property with no money down. LLCs have no income so you would have to buy the property in your own name.
0 votes Thank Flag Link Thu Jan 26, 2012
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