Posted by Rob FL on December 01, 1998 at 22:27:11:
Check out raelynn mitchell’s responses to Sandy FL about 25 lines down from here.
Corporation and Credit/new financing - Posted by Craig
Posted by Craig on December 01, 1998 at 19:40:03:
I am seeking any and all information on how to establish credit and obtain financing in the name of a new corporation.
I am a new investor. I have been studying for about 6 months now. My personal credit is beyond immediate repair, however, I have collegues that would engage in joint ventures to help secure financing on deals that make mathematical and practical sense. I would like to form a corp. for the purpose of limitng liability as well as obtaining credit in the name of the corp. My colleagues will provide personal guarantees when neccessary, however this counts against their personal credit and will become an obstacle when they appear to be overextended and new financing is required to secure a property.
How and in what way can a Corp help to avoid this problem?
Can an Illinois type ‘Land Trust’ be used in conjunction
to be liable for the loan?
What type of interest rates are we likely to see when using
a corp or other artificial person?
Under what typical circumstances is a personal guarantee likely or not likely to be required?
Note: I would not be an officer of the Corp. I would function as a consultant under contract to receive a share of the NOI in return for my services. Properties are primarily 2-8 families.
Thanks in advance for your patience and assistance.