I'm setting up a real estate investment company should I be a Corp or an LLC. Can I get a mortgage in either?

Question

I am in the process of setting up a real estate investment company with two other partners. We want to know whats better to set up a Corporation or an LLC. We will be purchasing property's I assume under the corporate name with us as gaurantors. Unless we can do it as a strait Corp/LLC mortgage. I'm not sure if banks will lend the money to just a ccompany. Please help, all information will be appreciated.

Answer 1

You will neeed one of the mambers of your llc to put up money and credit initially, but then after you aqcuire some property and assets you can get a loan from the bank. I do real estate investment as well with an llc and after 3 years we were able to get a 500,000 dollar loan. With that loan we paid back the partner who origionally invested and now operate soley on the LLC's money.

Answer 2

. Banks will not loan to your corp.  You don't even need to set up a Corp or LLC for what you want to do.  

Answer 3

An LLC is a corporation.  And considering the small number of members of the corporation, an LLC is your best bet.  In any case, one or more of the members of the corporation will likely have to personally guarantee a loan since a new corporation or merely an incorporated company has no credit history or dti to rely upon making it impossible to get a loan unless it was secured on the assets of the corporation (not the property you want to buy).