Purchasing Real Estate with the Business?
October 16, 2025
by a searcher from Iowa State University of Science and Technology in Chicago, IL, USA
We are currently exploring the acquisition of a business doing 25 million a year. The owner looks to be willing to finance the sale of the business, so long as we purchase the real estate the business is occupying at an agreed upon price.
However we have an issue securing capital for the real estate (around 2MM in purchase price) using the cash flow from the to-be-acquired business. The business already pays the current owner roughly double what the anticipated mortgage cost would be on the property.
Do you have any experience with situations where a company secures funding for a purchase based on the projected cash flow of an asset being acquired? Or are there other avenues you might recommend for obtaining debt financing for the real estate using the to-be-acquired asset’s cash flow?
We are no interested sale lease back.
Any and all insite would be helpful.
in Ponte Vedra Beach, FL 32082, USA
from Arizona State University in Houston, TX, USA