Does FICO matters If I am buying investment property for my LLC ???

[vedernikov]

I am trying to estimate a purchase of 6 to 8 unit rental property.

If the title and mortgage will be held by my LLC how important is my (and my wife's) credit scores and credit histories are?

I assume that when bank is making a decision on whether to give us a mortgage it is mostly looking at business plan i.e. whether the rent-roll form building can cover expenses and mortgage. If that is the case, do I have to care for my FICO score too much?

Thanks for your opinions!

[DJ2121]

Hate to be the bearer of bad news...You will most likely have to personally guarantee the loan, unless your LLC has a well established D&B profile. So yes, your personal credit will matter when this gets to underwriting. If your personal credit isn't too favorable though, you may still be able to purchase the building. Subject-to transactions are becoming quite popular in the commercial real estate market.

[phanio]

I can guarantee you that the first thing a bank or lender will look at is your personal credit scores. If your scores are bad or below their minimums - they will round file your request and move on to the next deal.
Banks / lenders require two main things - a willingness to repay and an ability to repay. Your willingness shows from your past credit history. Banks don't want to lose money just like you would not want a tenant to stiff you on rent. Banks / lenders want to be assured that no matter what happens down the road that you will pay them first. If you have blemishes on your credit report - they walk away (run away).
The ability to repay does not come from what you think you can make in the future. It is about what you can do right now. Do you have the cash flow to service the debt right now at the time of your request.
Once these are in place, then the lender will begin to spend time and money valuating your collateral and all the rest that comes with underwriting.
Your business plan will show that you have thought through things a bit - but that in no ways guarantees you will make money. Banks just like investors want to see a track record.
Way to many businesses are started by people that can't execute - these lose money and if a lender is involved, they also lose money.
I spent years as commercial lender and I can guarantee you that if your credit score was below our policy's minimum - you had no chance and I would not waste my time with your deal - too afraid that I would miss out on something that I could actually fund.
If you really want to do this business - then start right now - put a 100% effort into it and fix your credit score(s)!

[vedernikov]

Thank you for your responses! My credit is in good shape and I will make sure it is at its best ASAP!

[tylerhutchinson]

It does matter. I would put additional information but the previous posts sum it up. I was looking at a building to lease for my company and they pulled my credit as one of their first reviews.

[scottmcconnell71]

Agreed, they absolutely matter. Fixing your scores is imperative.