OfflineHey I have bad credit and no money so i was wondering that if i start a llc in my state can I start buying properties from the banks. I know that if you start a llc that you could use you ein as your social security number and then you can purchase reo's from the banks! If anybody has any info on this topic please feel free to let me know! I research my secretary of state and found that it only cost 100 something dollars to file for a llc. And not only that but I see alot of people in real estate that has an llc company! I'm just trying to findna way to start purchasing real-estate and building my porfolio! 
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Before you invest in a LLC, check with lawyer first. Yes there are benefits to forming one, but the hard core truth is the banks will still want a personal guarantee from you on any type of purchase. The days of walking into bank and saying I want to purchase a house through my LLC are over. Not to shoot your dreams down at all, I still encourage you to study the books and invest when you are ready. There are a ton of deals waiting to be had out there. You just have to find the right one and go for it. Best of luck to you...Jan
Jan's correct, whether it's a LLC or a S Corp, creditors still want a personal guarantee. I owned a oil company for 23 years & purchased over 1 million dollars of fuel from Hess Oil Corp every year ... & each year they still had me sign a personal guarantee.
You must study & lean how to do bird dog/assignments to make money when you have your type of situation. Then build yourself up financially to improve
your credit & cash.
but banks don't generally lend to an LLC. First, you need to build your credit for at least 3 months. You will need to get your DUNS # after you get your EIN. http://www.dnb.com/us/. It is free to get your DUNS #. Read a couple of books on building your business credit. The 2 I recommend are http://www.amazon.com/Principles-Building-Business-Credit-Roussell/dp/09... and http://www.amazon.com/Unlimited-Business-Financing-business-personal/dp/.... The 2nd one is a brief overview of everything you'll need to do and you can read it in an hour. The first goes into depth how to do it yourself.
Then you have to get 5 accounts going under your LLC (there's a list in the first book of companies that work with new businesses.) Credit cards will at first need to be personally guaranteed as well. Then you may be able to get a loan after 3 months.
But, like Jan and g said, many times they want a personal guarantee. However, if you follow the steps right, because real estate acts acts as collateral you may be able to avoid the personal guarantee, but I'd trust the previous 2 because they've had experience with it.
In my experience, if I put a loan on a buy and hold property, they required it under my personal name; or they would charge me a 2% premium on top of the 1 1/2% premium for the investment property. I never opted for the 2% to put it under my LLC because it would have cost me too much.
there are ways to do transactional funding, hard money loans and private money loans (the 2 are very different). There are many threads here on all those subjects.