forming a LLC?

[Derek Coleman]

im new to the real estate game
my question is, if an investor forms a LLC how do they go about building credit rating for the LLC or is the credit of the owner or owners is taking into consideration?

thanks

[Linda Weygant]

My mortgage is in the name of the LLC, using the LLCs EIN, but I personally guarantee the mortgage. Therefore, the LLC will soon have a credit score as the mortgage gets paid which will also reflect on my own credit too.

Home Depot will also give me a credit card in the LLCs name - again, personally guaranteed by me, so that will be another source of credit.

I have been told that after three years, I could petition to get my name off of the Home Depot card and have the LLCs credit score be the sole basis for credit (or close down the old card and reopen under the LLC only). I can also refinance the mortgage in the same way. With three years of tax returns as well, this seems like a slam dunk, but who knows what three years will bring.