Who qualifies for withco’s lease-to-own model?

Laura Rozner
who qualifies for lease-to-own
Published on July 11, 2022

A rundown of the types of partners we are looking for in our lease-to-own model. 

At withco, our #1 goal is to help small business owners become property owners, and we want to help as many small businesses as we can. But our model only works if the small business is truly ready for property ownership—we aren’t a magic real estate fairy that can put you on the path to property ownership with little-to-no credibility. 

As part of our lease-to-own model, all withco partners must undergo a thorough review of their financials and ownership readiness. Below, we break down exactly what we look for in a potential withco small business partner—and what you’ll need to qualify. 

1 — Small businesses only  

We partner with small businesses and small businesses only. But what exactly is a small business and how do you know if you qualify? At withco, we determine if a small business is actually a small business based on a few factors: 

  1. The small business must qualify as such under the Small Business Administration’s definition. This is because SBA loans are the most common mortgage takeover option, though they are not the only choice. SBA guidelines vary drastically by industry but consider both the business’s revenue and number of employees.
  2. To be eligible for a SBA loan, your business must:
    1. Operate as a for-profit company in the United States or its possessions
    2. Have a tangible net worth of less than $15 million
    3. Have an average net income of less than $5 million after federal income taxes for the two years preceding your application

Note that the SBA restricts lending to certain industries, and as a result, we cannot partner with the following types of businesses: 

  1. Marijuana
  2. Firearm industry
  3. For-profit prisons
  4. Payday loans
  5. Casinos / gambling
  6. Fracking

2 — Demonstrated success 

Not only must you be a real small business, you also need to be a successful small business. This means you’ve got plans for how to maintain and grow your business, and you must be able to demonstrate good financials, pay rent on time, and prove that you are capable of taking over a mortgage at the end of the lease. 

As part of withco’s underwriting process, we’ll ask for documentation of your financials in a few different forms: 

  • Your current credit score 
  • The last three years of taxes, balance sheets, and profit & loss statements, plus year-to-date. 

See what all information you will need to provide to qualify for withco partnership

3 — Needs cash to buy property 

We partner with some of the best small businesses, but many still don’t have enough cash on hand to cover a downpayment—or, they don’t want to tie up their cash in a non-liquid asset. In many cases, it makes more sense for a cash-rich business to do lease-to-own so that they can invest that money into other aspects of their business. 

That’s where we come in. If you’re a successful small business who needs cash to buy property, withco is the perfect partner for you. 

4 — Possess ownership mindset 

Owning property unlocks immense value, but it is also also a huge responsibility that requires financial and operational readiness. While it certainly isn’t a requirement to qualify for partnership, it’s a plus when we partner with owners who are comfortable with a triple net lease or who have already invested money in their building. 

Want to see if you qualify for withco?

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