How to purchase $5M building from the family business

[Stephanie Gledhill]

I would love to purchase the building from my family business. One is worth $5M the other $12M. The company would lease it back from us. The company C-Corp needs cash because 2nd generation shareholders want to retire. Is there any way I could qualify for a loan that large? The rent payments would be pretty much guaranteed ( business has been around for 60 years). Help. Any advice would be appreciated.

[Terri Wyzkoski]

Quote from @Stephanie Gledhill:

I would love to purchase the building from my family business. One is worth $5M the other $12M. The company would lease it back from us. The company C-Corp needs cash because 2nd generation shareholders want to retire. Is there any way I could qualify for a loan that large? The rent payments would be pretty much guaranteed ( business has been around for 60 years). Help. Any advice would be appreciated.

Stephanie, I'm a 29-year veteran lender, now CRE mortgage broker. This is a slam-dunk if you have the down payment for the acquisition, especially since you already have the tenants. And, of course, if the lease income covers the proposed debt.

I can help you determine if you qualify, determine exactly how long a lease they'd need to sign to obtain the appropriate financing, underwrite it appropriately, give you an idea of the rate and terms you can expect to obtain, and introduce the relevant funding sources (if you qualify).  Reach out if you'd like.