Tax, SDIRAs & Cost Segregation
Market News & Data
General Info
Real Estate Strategies
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/hospitable-deef083b895516ce26951b0ca48cf8f170861d742d4a4cb6cf5d19396b5eaac6.png)
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/equity_trust-2bcce80d03411a9e99a3cbcf4201c034562e18a3fc6eecd3fd22ecd5350c3aa5.avif)
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/equity_1031_exchange-96bbcda3f8ad2d724c0ac759709c7e295979badd52e428240d6eaad5c8eff385.avif)
Real Estate Classifieds
Reviews & Feedback
Updated almost 10 years ago on . Most recent reply
S-Corp purchasing rental property - needing cash out line credit
Hi all - here is my situation. I am a 100% owner of an S-Corp for the last 2 years. I made some money in advertising. Now that is winding down, I am looking to get into real estate.
The funds are currently under the S-Corp bank account, as I haven't withdrawn much. So what I would like to do is to purchase a rental property all cash under the S-corp, then turn around and pull out cash through a line of credit of sorts. (and hopefully do it all over again). So my questions begin:
- Would the lenders give a line of credit loan on a property owned by a S-Corp if I would personally guarantee it?
- What are some other options - such as if I create an LLC as a partnership between myself and the S-Corp (i read this somewhere, but not sure of the logistics).
Thanks! any advice is appreciated.
Most Popular Reply
![Linda Weygant's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/305938/1621443128-avatar-lindaw9.jpg?twic=v1/output=image/cover=128x128&v=2)
A corporation - either S or C - is not a recommended entity to hold real estate in. Unless you structure things VERY carefully, the passive nature of the income is lost in a corporate structure, including favorable Capital Gains income.
Take a shareholder distribution from your S-Corp and move forward.