Ready Your Business for Commercial Property Ownership

Stu Little
lease-to-own definition-barber
Published on August 17, 2022

Five steps to get you ready for commercial property ownership

At withco, we’re excited to help small business owners become property owners. Commercial property ownership can bring much-needed stability and life-changing wealth to small businesses—the only problem is the hefty down payment needed to purchase commercial real estate. 

Many businesses either don’t have or don’t want to spend the cash to put 10% down on a mortgage. That’s where our lease-to-own model comes in. We can help you secure the perfect property for your business and earn your down payment by simply paying fair-market rent. 

If it sounds too good to be true, know that this model isn’t for everyone—we’re only able to work with small business partners who have demonstrated success and a solid plan for the future. But there are a few ways you can ready your business for our lease-to-own partnership—and eventually become a commercial property owner: 

Get your finances in order 

In order to qualify for our lease-to-own partnership and future property ownership, you’ll need to have at least 2 years of tax returns and profit & loss statements ready to share. If your paperwork is all over the place, it’s time to get organized. Hire an accountant or even use a digital accounting service that can streamline your finances. This will help you and your real estate partners better understand what you can afford. 

Improve your credit score

Other than the down payment, a bad credit score often prevents many small business owners from buying commercial property. But this is an aspect of your financial health that can easily be improved. 

Evaluate your debt-to-income ratio

An important aspect of qualification comes down to earn vs. burn. Try to decrease your monthly debt payments or pay off outstanding debts entirely before looking to buy real estate. A helpful side effect is that this can also help improve your credit score. 

Talk to your landlord 

If you want to stay in your space long term, consider talking to your landlord about whether or not they are interested in selling their property—and when. Chances are they’d prefer to avoid the hassle of listing the property and sell it directly to you. If they’re not interested in selling, at least you’ll know you need to start looking elsewhere. 

Get in the ownership mindset 

Property ownership is a major responsibility, and it would be wise to understand just what you’re getting yourself into. If you’re on a triple net lease, you already know much of what it takes to fully manage a property. But either way, do your research and come to the table fully equipped with real estate ownership knowledge. 

It’s only a matter of time before you’re ready to own your business’s real estate. Feel free to reach out to us with questions about our lease-to-own partnership at any time—we hope to hear from you soon! 

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