Operating Companies Purchasing Commercial Property

Three years ago, I was exposed to this type of structure.  Today, it's now become a major part of my business.  

If you run your business out of a corporation, that corporation can qualify for financing on its own.  

To give you an idea.  

I have a client purchasing a $4.4 million dollar commercial building.  The building on its own merits, only qualifies for $1.3 million worth of financing.  This means if you are buying it as a rental only, you have to put $3.1 million down.   Since the client is putting their business into it, the qualification goes from $1.3 million to $3.8 million due to corporate financials.

That's 15% down vs 70% down.  

There are three types of clients for this structure:

1. A company that is already paying rent who wants to own the building instead.

2. A company that is not paying rent, but wants to own a building and put their business into it.  

3. A company that is not paying rent and wants to buy commercial investment property.  

Steps involved:

1. Structure corp financials to maximize lending

2. Purchase property that fits your corp financials

Notice how it's not, let's buy property x, then go to the bank and see if we can be approved.  

Reverse engineer everything to maximize the result.  

Got a corporation and want to know what it can do, feel free to message.