Building company credit to buy real estate

[Logan Zanki]

Has anyone on here used company credit to buy real estate? I've been talking to a company that said they could get me a company line of credit for 50-70k with in 6 months. I was thinking what if I used the company credit back with my personal savings to do a fast purchase on a home and then took out a HELOC to pay off the company credit. I would love to know of anyone else on her has done this.

[Duncan Taylor]

Originally posted by @Account Closed:

No LLC or CORP cannot borrow money without giving a personal guarantee

Not looking for a fight here but, that is an over-generalization. Banks loan corporations money every single day without personal guarantees.

However, the situation described above just does not exist in the real world and even if it did there are real problems with it.

You are saying you would get a business loan to buy a property then get a HELOC on the property to pay back the business loan. The problem is, when you buy that property or when you close on that HELOC the lender will require the property to be in your name. That is a conversion of business funds for personal use in the eyes of the IRS and makes those loan proceeds a taxable gain. Fail to pay the taxes and you would get the criminal field auditors involved with your case were you successful with that strategy.