I've got a great idea on how to buy a house w/o having to take out a mortage ? What do you thin

Let鈥檚 say I want to buy a commercial property for 200K and don鈥檛 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 is 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鈥檒l own the properly free and clear.

Thanks guys.

I%26#039;ve got a great idea on how to buy a house w/o having to take out a mortage ? What do you think of it .....child tax credit

the5% is great but it%26#039;s not tax deductible.....is the property going to be under company%26#039;s name or yours?

if the company%26#039;s name...then you cant claim the property taxes for tax writeoffs

I%26#039;ve got a great idea on how to buy a house w/o having to take out a mortage ? What do you think of it .....

loan

I believe if you own the company 100% you can do it. If it%26#039;s a public held company you can%26#039;t.|||It sounds like what you are saying is you would take out a business loan at prime rate 8.5%, and then lend that money to yourself at 5%.

There are 2 problems off the bat. First, the government will consider the difference between the interest rates to be income, and subject to income tax. Secondly, the prime rate will flucuate, while a fixed mortgage wont.

I would be very surprised if a bank is going to offer a business with 1mm in sales a 200,000 line of credit, without security.|||Better to protect your personal assets by keeping them separate from your business. If the business fails(or you get sued) you may lose the house since it was bought as part of that entity. If you want ownship without long term payment, it might interest you to research Tax Liens.|||Does your company have $200,000 cash it can spare like that? what happens if the company goes thru a slow period and now needs that 200,000 cash to pay payroll, material costs, etc. You could wind up bankrupting your own company. Also, the company would have to lend you money at the same rate it would to an unrelated party or you will have imputed income from the loan discount that you%26#039;ll personally have to declare - IRS rules.|||Let me know how this works out I have some properties for sale if you would like to try it out.. I would agree with Dr. Death though.. But all in all it makes sense that it would work. I am serious about if you would like to try it out. I have investment properties that I would sell you to try out..|||Some people actually use the company to invest properties. The house will be under the company%26#039;s name instead of you personally. Then all the expenses including mortgage interests, property tax, hoa, repair expenses are tax-deductible to your company.