The withco difference: How lease-to-own works

Stu Little
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Published on January 26, 2022

Starting a small business requires lots of capital, and seeing a return on that investment takes years of hard work. Ownership of commercial real estate offers business owners greater control over their future and the opportunity to create wealth, but the competitive bidding dynamic of commercial real estate transactions and high down payment requirements in a conventional mortgage make it challenging for business owners to own their properties. 

withco’s “lease-to-own” product allows small business owners to earn equity in their property while leasing over a set term. This arrangement allows withco to partner with entrepreneurs who are ready to own their property to ensure greater control over their future. In this post, we’ll go over everything you need to know about how withco’s “lease-to-own” product is helping turn America’s best small business entrepreneurs into owner-operators by making property ownership simple and affordable.

How does withco’s lease-to-own product compare to a mortgage?

A conventional mortgage on a commercial property typically requires 10-20% of the purchase price as a down payment to secure the loan. To put that into perspective, if your business is in a property valued at $1,000,000, you would need to have a $100,000 – $200,000 down payment up front, in addition to closing costs, to secure a mortgage. 

withco’s lease-to-own product allows small business operators to earn equity in their property over time. Our success is your success – withco works with small business partners to purchase properties using the equity earned through on-time rent payments during the lease period as the down payment for the purchase.

How does withco’s lease-to-own product compare with a standard commercial lease?

withco’s lease-to-own product is geared toward small business owners who are ready to take the next step toward property ownership. During the lease term, withco’s lease-to-own product is most similar to a triple-net, or NNN lease, where the small business partner is responsible for paying property taxes, insurance, and common area maintenance in addition to utilities. 

Unlike the standard commercial lease, withco’s lease-to-own product allows tenants to earn equity in their property with on-time rent payments. This allows small business owners to seamlessly transition from paying rent as a lessee to earning equity as an owner-operator. 

How is withco different from a traditional landlord?

One of withco’s core values is to support small. Our success is tied to our partners’ success and we believe that the best way to support small businesses in America is to put owner-operators in the driver’s seat when it comes to securing the property in which they operate. Since we’re working towards the same goal as our small business partner, our relationship is built on mutual trust and transparency.

Support small: We invent, build, and execute to meaningfully improve the lives of our small business partners. We put in the work to look out for their best interests because their success is our success.

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