Can You Start a Commercial Real Estate Business with Nothing?
Lets assume I want to get into the business of buying and leasing commercial real estate. Can I just start an LLC or Incorporation, identify a property (ie: Office Complex for $500,000), then go to the Bank and say, My XYZ Corporation needs a loan to purchase a $500,000 complex that will be leased out for $50,000/yr.
Would the Bank Grant the Loan, knowing the property secures the loan? Or will the bank demand that my XYZ Company have $500,000 in assets that will secure the loan outside of the property being purchased?
- rtfmLv 710 years agoFavorite Answer
The reality would be somewhere in between. You'd need a decent down payment to put down, but not 100 percent of the value of the property.