Expert: Terrence Cullen - 9/27/2007

Question
I have a dillema here. As of right now I am 24 years old and I buy distressed single family homes, fix them up and sell them for a profit. What my plan is, is to do this for a few more years and take the cash I have made and invest it into commercial real estate. Here's the problem.... my personal credit score is terrible (under 500 FICO) however I have heard that you can apply for credit and build lines of credit through an LLC or other business entity.... I want to know more about how to do that. Because in 3 years I will likely have over a million dollars to leverage into some commercial properties and I want to get favorable financing for those buldings so my cashflow situation is better. Thanks for your help --Blake

Answer
The banks or lending institution will still look up the principals of the company's credit. In three years you should be able to bring your credit into the 620-680 range and that should allow you to get good financing.
They will also look into the owning entity also so don't neglect one to fix the other. Their are companies that boast they can move your credit score 100 points in 3 months. Although I have no personal experience I have had some people in the residential loan business that swear they work.

Good Luck,
TC