Many of our subscribers are real estate agents, managers, brokers, investors, or flippers – or those who want to be. So we get asked one question more than any other…
“Is it possible to purchase real estate in the business name?”
The answer is a resounding “Yes, you can!” Not only can buying real estate in your business name shield personal assets, it is generally easier if you know what to expect and can prepare in advance.
Purchasing real estate may also help increase the assets and credit rating for your business while reducing the debt being carried by your personal credit. You will typically also find more real estate funding deals will come along with less and less effort as your business grows. The key to success is getting your business in the best possible position before you actually need the capital to invest.
These six steps will help you build a stronger foundation.
1. Your Business Creditworthiness Get your business credit file ready to carry new debt by proving it responsibly manages existing debt. Even if the initial loan is in the business name and collateralized by the property, you will eventually want to convert it to corporate responsibility and grow future endeavors based off its history. When making that purchase in the business name, you need to have a good business credit file to back up your request.
2. Locate the Right Property Find the property you want to purchase by using online services to find real estate for sale that meets your specific goals. The type of loan you are seeking will depend on the future use of that property, whether for new construction, business use, resale, or rental income. There are a variety of funding options, but each will be dependent on the future potential use of the property, not just where it is at time of purchase. You will need to outline the property’s potential, as well as your future plans and goals so you can present them to the lender later.
3. Making Contact Contact the real estate agent or owner who has offered a property for sale that you want to buy. Most sellers of real estate will list a phone number, email address or website that you can use to communicate your interest in the property. Make sure the seller understands this is a business purchase, rather than a