I plan on filing bankruptcy in the next couple of months and I was wondering is it better to just incorporate my name so that I can buy property faster. I know it takes 2 years if not. I also plan on building a real estate portfolio, so I figured I'd incorporate myself and start buying property again that way. How long does it take to build credit to buy property if incorporated and what should I do to build credit up as a corporation? Also, is LLC best for what I'm trying to do? Thanks! I appreciate any advice given.
Depending on your local lending institutions, it can actually be much harder to get a loan through a corporation. For example, many lenders will want to see the last x years (generally 5 years) worth of tax filings for the corporation to show that it can make the payments. As well, lenders will ask for a larger down payment from corporations.
In other words, getting a mortgage for a corporation, especially if it has no history, may be close to impossible unless you’ve got a very large down payment on the property.
In terms of building credit for a corporation, it’s somewhat different, and beyond what this site can probably help you with. It doesn’t work exactly the same way as private credit.
Normally investors that buy properties with corporations do so after they’ve already acquired a certain real estate portfolio. Rarely do you see investors start out with corporations because of the added hurdles and costs you initially encounter.