How to buy real estate as a group

[John Kim]

I will be collecting money for 3 investors to purchase multifamily units.

1) Is LLC or S corp the best entity?

2) Is it possible to apply for a mortgage without anyone's personal credit?  I assume one of us needs to apply based on personal credit and income requirements.

3) Going forward, how do we get bank financing without pulling our personal income/credit?

[Chris Tracy]

1) Is LLC or S corp the best entity?  Talk to your attorney

For answer #2 & 3, you would typically use what is called a KP (key principal) and that person would help you qualify for the loan.  I'm assuming we're talking about larger deals?  Your FICO score etc is irrelevant.  Commercial is not like residential.