can a coporation be set up to purchase real estate and how would that work?

Question

To e more specific, can a corporation be formed to purchase real estate without an individuals credit report being pulled. What kind of a company would that be and would it work?

Answer 1

You can certainly set up a corporation for that purpose (just set up a LLC). The problem is the corportation won't have any credit history (at least not at first) so the bank won't lend it money. Typically the corporation would either have to pay cash or the owner would have to sign for the loan themselves (though the corportaion could stillhold title - mostly for safety/insurance reasons).

Answer 2

Legally speaking, it would be a piece of cake. C corp, S corp, LLC, wouldn't matter.

The snag would be finding someone that would actually lend money to a corporation.

Corporations that are loaned money fall into three categories:
1. Those that have been in business a long time
2. Those with a significant amount of assets to pledge
3. With a Personal Guarantee; they aren't interested in someone's guarantee without checking credit.