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Updated over 5 years ago on . Most recent reply

User Stats

88
Posts
11
Votes
James Edwards
  • Lake Oswego, OR
11
Votes |
88
Posts

Payment as Percent of /Profit

James Edwards
  • Lake Oswego, OR
Posted

Has anyone ever purchased a commercial property, and used profit of the entity to set monthly payment amount, so it is flexible?

For example, full/contract price of $100k, 10 year amortization. Monthly payments not less than say 5% of revenue. 

Seems to me a decent option for an owner carry property, with the ability to share some of the risk between both parties.  

Most Popular Reply

User Stats

38
Posts
32
Votes
Austin Neal
  • Specialist
  • San Antonio, TX
32
Votes |
38
Posts
Austin Neal
  • Specialist
  • San Antonio, TX
Replied

@James Edwards You might consider a master lease with purchase option at the asking price. That’ll give you some time to test the theory.

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