have anyone purchase a shelf corp to use as down payment money to purchase commercial property.

In Buying Property - Asked by sonja p. - Jan 16, 2009
Report Abuse
Answer this Question

Answer(s)

Joe V.
Owner/Investor
Plymouth, MI

Yes. It is by far the best way to do it. The LOC will give you your best leveraging power, and depending on how large the LOC is (mine is around $2M), and the cost of the property, you can use the LOC as either a 100% purchase (this would mean NO LIEN on the property), or as a means for POF or down payment for a loan. I've done both. Just make sure you get a guarantee on the shelf company, and the LOC is NON-Signatory...so your credit score doesn't matter, and you aren't going to be personally responsible for the debt. Also make sure the LOC is already attached to the Shelf Company. IF it isn't, you're just buying a company that is "bank ready". You can get an LOC, but it will be very low without the already established relationship with the bank. This is by far the best rout to take though.

Jan 17, 2009
Report Abuse
Phil B.
Broker/Agent
Wilmington, NC

Not enough information to give an intelligent answer. I think the term you are referring to "shell" corporation, though.

Jan 18, 2009
Report Abuse

Welcome to Answers

LoopNet Answers is where the commercial real estate community shares what they know to help each other out. And it's all for free.

Ask a question to get advice from brokers, investors, professionals and local experts.

Answer questions to raise your visibility as a trusted advisor and build new relationships.

Ask a Question

Post Question