My brother and I are looking to buy a commercial property. We don’t have the 25% down normally required for a commercial loan.
However, our grandparents were smart investors and set up a trust fund for all of their grand-kids. My dad, who keeps tabs on these type of things, says that right now each of us stands to inherit about 70k from the trust.
What are the details of using secure trust funds as collateral in our state?
The trust document will dictate whether these funds can be collateralized – or not. Most trusts do not permit beneficiaries from using funds as collateral.
Check with the trustee and read the trust document to confirm. Then, of course, check with a number of lenders.
Lenders look at the details of each situation. They may be able to help even if the trust document is not quite favorable.
Finally, don’t overlook the possibility the owner may help with financing. Commercial property sales often involve some form of owner financing.
Let me know how you make out.
If you have questions or comments, please send them to Gene@AskMtM.com
MoreThanMoneyOnline.com