Can a 1year old LLC company buy through credit?

[Cecilia Cobar]

I have a 1 year old LLC company active, especifically buying, fixing and selling properties. We started our first fix & flip in may 2016 and ever since have managed to sell this first one, and bought, fixed and sold the second one. My question is, when and how will I be able to buy my next fix and flip project through a credit line,and if so, what type of credit will I be able to use? If anyone can help me out, will be appreciated! Thanks,

[Corina Eufinger]

Your type of financing will depend on they type of property. Keep in mind that single family homes and duplexes loans are treated like personal loans, they look at the person not the entity. If you are considering a small business loan then the LLC would have to have collateral or cash flow sufficient to limit the banks liability or loss. Collateral could be an owned office (that isn't part of your home), tools, vehicles owned free and clear, or other property owned free and clear.

While i don't know the specifics of your deals and situation, I am concerned by the fact that you need to consider financing after doing two deals, especially to help pay for purchase and rehab.  Usually the need for financing decreases, not increases with each deal made.