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Anonymous
Anonymous asked in Business & FinanceSmall Business · 10 years ago

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?

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  • rtfm
    Lv 7
    10 years ago
    Favorite 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.

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