Commercial Real Estate: $700,000
Working Capital and Equipment: $120,000
Total Value: $820,000
NO MONEY DOWN
Full case study
Ash H. purchased a $700K building for his business. At the close, he received an additional $70K in working capital and another $50K for equipment that he wanted for his new office. Ash also had a business credit card debt that he was able to add to this loan. To top it off, his business only needed 60% of the building, so Ash is renting out 40% of the space. Instead of paying someone else’s mortgage, he is building over $100K each year in equity towards his own building. His income from renters pays a large portion of his mortgage as well. Upon retirement in 15 years, he will have the $700K property paid off and it will be worth over $1M. If Ash decides to leave the business to his children, he leaves an amazing legacy and they won’t have to worry about a mortgage payment. He can also decide to sell the property to create additional retirement money or lease the property out for a monthly income. Ash has several excellent options now that he purchased commercial real estate for his business.