Investor · Spring, TX · Member since 2014 · 3 posts · 2 votes
Hello everyone,
I'd like to get some advice on lending money to a church for the purposes of the church buying real estate. A local pastor in GA is looking to buy the building where they currently hold services. The owner has offered to sell them the building, they are very motivated, but they don't have the asking price on hand. They don't have to borrow money as the building owner has agreed to owner finance the property with a modest down payment of 100K.
There are several members in the church who would like to lend the money for acquisition of the property. The property would be held in the church's name. It's a 501 c3 entity.
How can the members lend to the church? How can the church pay off the members at a later date along with some interest for using the money?
Investor · Fort Collins, CO · Member since 2015 · 304 posts · 112 votes
10y
@Troy Price This is a challenging question. First, while you are doing a good deed in giving capital to the church, make sure you get your hands on the owner financing documents. This will instantly tell you how safe your money will be. Second, what is your church's idea of your capital contribution? I ask as in many cases it is just seen as a donation and in that case there is no return. I imagine you have the answer to that question, but I thought I would pose it anyway. One thought might be to partner up with other members of the church to buy the property, and just rent it back to the church. While this may not be the solution you are looking for, it has the structure that provides the most security for the capital contributors. I hope it works out for you!