Lets assume I want to get into the business of buying and leasing commercial real estate. Can I just start an LLC or Incorporation, identify a property (ie: Office Complex for 0,000), then go to the Bank and say, My XYZ Corporation needs a loan to purchase a 0,000 complex that will be leased out for ,000/yr.
Would the Bank Grant the Loan, knowing the property secures the loan? Or will the bank demand that my XYZ Company have 0,000 in assets that will secure the loan outside of the property being purchased?
The reality would be somewhere in between. You’d need a decent down payment to put down, but not 100 percent of the value of the property.