Commercial Lease-Option vs OF (builder needs help buying land)
My question is I am a builder in search of commercial land to build my design on. I found some that are free and clear and was wondering how to structure a lease purchase - balloon vs make an owner finance offer rather than cash offer. Our commercial banker is requiring 20% down, we can put that in anyway we want, land or building. Land prices range from $2-12 per square foot here. I figure if I can cash flow the land put our cash requirement into the building, it would reduce our up front cost. 20 year loan is the max they go on commercial, and payment. I can on a cash flow basis afford more land if it is amortized over a term to develop the area as an exclusive builder.
New to commercial, isn't alot of commercial land leased by companies with a balloon? Or does owner finance make more sense?
BTW: I'm creating an "Paramount Real Estate, LLC " entity for the purchase that Paramount Construction, LLC will lease from. This building will be a two-story home-office, lower commercial for us, upper single family loft to reside in.
Thanks in advance.