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
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Joe V.
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
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Phil B.
Wilmington, NC

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

Jan 18, 2009
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