Business Capital
Using Real Estate to Fund Your Business
Asset-rich and cash-tight is a solvable problem. This guide covers one of the solutions.
Business Capital
The short version, then the substance.
Key Takeaways
- The building is a bank
- Structures that work
- Keep the entities clean
The building is a bank. Owned commercial property, rentals, or land carry equity that can capitalize the operating business in days. For owner-operators, the real estate is often the largest untapped credit line they have.
Structures that work. A loan against the shop funds the inventory buy. A cash-out on a rental funds the expansion. The real estate secures, the business deploys, and the return services the note. Keep the use of funds tied to revenue and the structure is sound.
Keep the entities clean. Business borrowing against personal or holding-company real estate should be papered properly: right borrower, right guarantees, clear inter-company terms. Ten minutes of structure now saves real pain at refinance or sale later.
The South Texas angle. Averlend underwrites this every week in San Antonio and across Bexar County. If you are working a deal in Alamo Heights or anywhere else in the metro, the theory above comes with a local desk attached: see our San Antonio lending page or send the deal directly.
Questions
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