I am hoping Diane might have time to respond to this one but would appreciate any feedback, from people with experience on this topic.
I have 2 LLCs - let's call the first one Company A. It was set up in 2003, filed very limited tax returns for 2 years and then went into an inactive status. Instead of filing through the LLC, I just put the properties on my personal return.
Company B - setup in Feb 2006, has filed one tax return and has since been much more active in investing than company A.
The issue we are facing is in obtaining business loans for company B. Due to the fact that the nature of the business is real estate investing, the company always shows a significant loss. I am finding that, when attempting to obtain business loans, banks are typically looking for three things:
In future years, I would continue to loan from A to B and, hopefully, continue to increase the creditworthiness of Company A. Access as many LOCs as possible, to better fund the real estate investment company?
Please feel free to shoot holes..... I have a lot to learn and am trying to make sure we best take advantage of the structures (particularly the aged ones), which we have available.
Thank you for your time.
I have 2 LLCs - let's call the first one Company A. It was set up in 2003, filed very limited tax returns for 2 years and then went into an inactive status. Instead of filing through the LLC, I just put the properties on my personal return.
Company B - setup in Feb 2006, has filed one tax return and has since been much more active in investing than company A.
The issue we are facing is in obtaining business loans for company B. Due to the fact that the nature of the business is real estate investing, the company always shows a significant loss. I am finding that, when attempting to obtain business loans, banks are typically looking for three things:
- 2 years of history
- solid D&B rating
- Cash Flow
In future years, I would continue to loan from A to B and, hopefully, continue to increase the creditworthiness of Company A. Access as many LOCs as possible, to better fund the real estate investment company?
Please feel free to shoot holes..... I have a lot to learn and am trying to make sure we best take advantage of the structures (particularly the aged ones), which we have available.
Thank you for your time.
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