< Frequently asked questions

How does withco help business owners become property owners?

We help business owners own their commercial property through our lease-to-own partnership. Here’s how it works: 

  1. First, we learn more about you and your business, this includes discussing the following:
    • Your financials (Past few years of Tax Returns, Profit and Loss Statements, Bank Statements) 
    • Your current credit score 
    • Your real estate needs
    • How much you currently pay in rent (and what your budget is if you are looking to expand ) 
    • You will let us know if you want to stay in your current property, relocate, or expand to new spaces. Based on the information you shared, we discuss if lease-to-own is right for you now. 
    • Our goal is to make sure your budget works for our lease-to-own partnership and you are financially in a place to own. If the timing isn’t right, we will come up with a game plan for what it will take to make lease-to-own happen. 
  2. If we determine that lease-to-own makes sense for you and your business, we will proceed with identifying and purchasing the property on your behalf. We partner with business owners looking to stay, relocate, or expand. Once the property is identified, we will make an offer on the property, oversee the negotiations,manage due diligence, and close on the property. Once we close on the property  on your behalf, withco becomes your new landlord. The new lease agreement that we sign together will include:
    • The rent structure over the five year term
    • Tenant responsibilities
    • A predetermined purchase price for the property at the end of the lease.
    • Your equity amount
  3. The business earns equity every time they pay rent over the course of their five-year lease. 
    • “Equity” = money that the business owner can use toward a down payment to purchase the property. 
    • The tenant never pays more than market rent and withco will never increase the rent. 
  4. After five years, the business purchases their property from withco at the predetermined price using the down payment equity they’ve earned. 
    • The down payment is used towards taking out a mortgage on the property. Our end goal is to set up our partners with a mortgage, the typical option is an SBA loan, however you can explore any lender (note that the down payment needs might vary) Hurray for property ownership!

Get a closer look at how withco partners with small businesses by reading our most recent case studies: