S-Corp purchasing rental property - needing cash out line credit

[Art S.]

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The funds are currently under the S-Corp bank account, as I haven't withdrawn much.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.

[Linda Weygant]

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.