LLC ? Will it help ?

[James Staples]

I am trying to find a way to lessen the effect of my 664, somewhat scarred credit so that I can obtain whatever  financing I need so I can secure a property flip it, pay  back the funding, then move on to the next.

About 6 years ago I was working on a project with some guys and we agreed I would pay for a corporation formation, then we would all go in on our own specialties for the project. I knew that if we had a CFO with a 640 score, he could apply for the business funding without any of our low scores being an issue [the proposed CFO was very well off and above 750 score]. As soon as I got the Corporation in the mail,, everyone backed out; and the entire project crashed. I was only out $400, including the cash I put in the bank. But it was an S corporation, i didn't know the differance.

So I am wanting to form a LLC, in hopes I may be able to have it provide something which will assist me in obtaining the funding I need for simple wholesale flips ; since my 664 but dinged up credit seems to be a barrier for finding funding.

I am not looking to make alot. Actually, I am allowed to make $700 per month on my SSD and not have it affected. $700 per month would be huge fat city living for me, as well as it would help me pull all the dents out of my credit in a short year. If there were others in the LLC, anything else of proceeds could be piled into it and divided among whoever is involved.

The first flip i have targeted is $24k but cash only. Its appraisal is $65k, we could flip it fast in this area for $50k, leaving some equity for the buyer. But until I find away to bypass my credit, I go nowhere.

Would an LLC help me in this issue? I am wanting to avoid snags in the future as the area I am in has hot and fast wholesale and rehab flips if someone has cash in hand.