Anyone have experience with acquiring Real Estate along with the Business?

by a searcher from Harvard University

5 years ago

If so, would love to have a quick conversation on things I need to be aware of, mistakes not to make, etc.  Let me know, thanks!

9 likes
239 views
7 comments

professional from University of Akron

For me, I usually advise against as I want people to maximize their leverage in the acquisition. In general, you're using your leverage to buy an expense instead of using it to buy cash flow. If you have limited resources, use them to maximize your cash flow and thus your return.

Of course, all situations are different and there could be great reason to purchase the real estate. Someone mentioned Sale- leaseback as an option, which definitely can be a tool to get creative with the acquisition and even add value.

7 months ago | like reply | 0 likes

investor from The University of Chicago - Booth School of Business

You should also examine the potential for a sale-leaseback opportunity. Given the right circumstances (lessee creditworthiness, etc.), professional real estate investors may be willing to pay a premium for the real estate as their focus is weighted heavily on lease economics and related returns. Arbitrage profit can exceed 20%.

5 years ago | like reply | 2 likes

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