Business loan with my New LLC

[Jigna Thakkar]

Hi There Fellows,I have just started an LLC .and i would like to get a loan.My Credit Score is around 653 From Trans Union.

Am i Eligible For a Loan.

Or Can my Manager Give become the guarrantar of this Loan.His Score is 700+ .

If My manager or my employer become the guarantor,What Documents Will be Required,

Also what will be the Best Place to get a loan and How much loan can we get.

If we are unable for a loan.

How to get a Business Credit card with atleast $10,000+.

Please Guide

[Jason Shackleton]

Hi @Jigna Thakkar With a new LLC you will be unable to get a loan as there is no income to base the loan off at the current moment. As for using credit card stacking this is definitely an option. For most of the lenders I know of they are looking for a 700+ credit score. You are currently a little low so I would consider credit repair here. About 70% of these deals are actually approved by using a co-signer so yes you can do that. The average approval is around $45,000. Lines can go as high as $100,000. I have seen higher for very strong files.

I hope this helps,

Jason

@Jigna Thakkar

[Tim Matthews]

How exactly does one use credit cards to purpose real estate?

[Account Closed]

@Jigna Thakkar What kind of business loan exactly do you need? Is it for property purchase or for your business operating? If it is for property purchase and rent out, new LLC is totally fine. If it is for property purchase and for your own business use, then SBA loans would be the best option. If it is for business operating, then local banks and credit union would be a good start to ask.

[Catherine Javier]

@Account Closed, I am a newbie as well and I have a similar question.

I am in the process of closing two condos for rental and first timers. My real estate agent changed the name of Buyer from our LLC's name to our own name. Apparently, he spoke to our lender and lender said that if it is bought under an LLC, it is going to be a business loan. Does a business loan for an LLC gives higher interest rate? Or will we not be allowed to loan? Or can do we do a personal mortgage and just title it in the LLC? Thank you so much

[Account Closed]

@Catherine Javier A new LLC just to hold the rental property is totally fine. You will need business loan or called commercial loan to purchase the properties. Yes, you will get higher interest rate than getting conventional residential loan under your personal name. It's about 1-1.5% higher. Getting a commercial loan is easier as it does not require your W2 income and tax return for underwriting. As long as the property cash flows and you have the down payment (minimum 20%) in the bank account, you are good to go. In addition, the loan will NOT show on your credit report, so it will NOT affect your DTI.

[Catherine Javier]

@Account Closed, thank you so much for sharing information! It is getting clearer now. Few more questions if it’s okay.. 

The first condo unit is already in process with a lender. We have informed the processor that it is an investment property. I cannot remember if we mention that we bought it under LLC (although we have sent the agreement to her and buyer name is under LLC).

1. She gave us 30 yrs- I have read that business loans are usually 15 yrs, is that accurate?

2. If the loan is already in process and we locked the rate and is probably a personal loan, can we just place the title under the LLC's name? (I remember that the title company asked for the articles & ein which we sent already)

3. Or the LLC will be useless since our name will be showing as owners of the condo?

Again, thank you so much!!!

[Account Closed]

@Catherine Javier 1. Business loans can be 30-year fixed rate for condo investment property.

2&3. I believe personal loan should put the property under personal name. Business loan should put the property under LLC. I might be wrong this one, but the Title company can confirm this.

[Catherine Javier]

@Account Closed Thank you so much I really appreciate you for responding 😀