Posted by dom on March 27, 2011 at 20:57:26:
Thanks for opening my eyes…
Experience with shelf companies with credit line? - Posted by Dom
Posted by Dom on March 27, 2011 at 10:35:09:
Hello, i received an offer to buy a shelf company with
1
Million line of credit attached. Has anyone used these
before?
Good, bad? Any hints most welcome.
Re: Experience with shelf corp. with credit line? - Posted by Chris in FL
Posted by Chris in FL on June 12, 2011 at 08:33:05:
No experience with this, but here is part of what I would do to protect myself (plus other due diligence)… If it can be used any way you want, then have the seller borrow the money, then transfer all funds to you at closing, less cost of the shelf corp. My guess - when you suggest that, the seller “quietly disappears” (but it costs nothing to ask).
Best wishes,
Chris in FL
Re: Experience with shelf companies? - Posted by ari
Posted by ari on March 27, 2011 at 11:09:16:
I checked this out a few years ago. Someone was trying to sell me a shelf corp and tell me that I could purchase anything I wanted with the credit line. That is just BS. Don’t listen to these companies. Just because you have a seasoned company with lines of credit doesn’t mean you can do anything you want. Don’t you think that everyone would pay $10,000 in order to have access to hundreds of thousands? Sure, but there’s a hitch to it.
I highly doubt that you could purchase real estate with a corp, although some sleeze ball was trying to convince me. I don’t know all of the in’s and out’s so I suggest you talk to an attorney first. After all, you’ll have tons of money to pay him, right? I’d stay away from buying shelf corps in my opinion.