I’ve figured out a way to buy a property w/o having to get a mortgage. Tell me what you think?
Let’s say I want to buy a commercial property for 200K and don’t want to put do 30% and get into an 8 – 10% interest rate commercial mortgage. I own a very profitable company which grosses 1M per year, Bank are always offering this company large loans or equity lines on the business. What if my company borrow me some money, at a fair interest rate of say 5% simple interest and I use it to buy this property ?
What are the advantages and disadvantages? From what I can see. I will have lots of money on the loan (interest) and not have to make a large down-payment and I’ll own the properly free and clear.