buying the LLC with the property

buying the LLC with the property

Akron, OH · Member since 2012 · 77 posts · 2 votes

I'm a newbie to commercial (I've been exploring it for a while now) but have residential experience.

If I find a commercial property, in this case, a larger multifamily, that has it's own LLC as it's name, and, within that LLC are 2 employees and several service and management contracts...is there a way to buy the entire COMPANY, meaning, the LLC, the real estate it holds (which is ~95% of the value) down to the point that the telephone number, etc remains intact?

If I were to do this, does the financing take into account the value of the business outside the building, or is that a seperate transaction as far as the lender is concerned?

My thought is that, if I find a well-functioning entity with good staff, it seems it would be much easier to buy the entire entity and everything with it, than to create a new LLC and have to basically "rehire" the 2 employees I want to keep, etc...

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Lender · Tyngsboro, MA · Member since 2009 · 3k+ posts · 2k+ votes
14y

You also should consider that when you buy an LLC, you buy all the liability that comes with it. Such as previous contracts, previous slip and falls, previous whatevers......

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  • Property Manager · Dublin, OH · Member since 2009 · 1k+ posts · 291 votes
    14y

    Hello Joe,
    yes its possible to buy complete LLC if its only for this propertie created. But only the business owner can come to a decision if you ask him.

    Problem can be a mortgage or so on or for the propertie so bank want an other buying process. With free and clear properties or all cash it should be no problem.

    -Uwe

  • Akron, OH · Member since 2012 · 77 posts · 2 votes
    14y

    Can it be structured in such a way that the contract for purchase of the LLC references a separate contract for purchase of the property itself? Then the financing would be done solely on the property, but the rest of the purchase in cash?

  • Lender · Tyngsboro, MA · Member since 2009 · 3k+ posts · 2k+ votes
    14y

    You also should consider that when you buy an LLC, you buy all the liability that comes with it. Such as previous contracts, previous slip and falls, previous whatevers......

  • Specialist · Portland, OR · Member since 2010 · 3k+ posts · 1k+ votes
    14y

    Joe, buying the property outside the LLC is the only way to do it IMO.

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