Specifically, they're looking to purchase a residential home that has a recording studio built into the house. The plan is to create a LLC (Company "Z") that will use the proceeds of the SBA Loan to purchase the residential home/studio and then setup a Lease Agreement, where Company Z will lease the premise to Company A, with the rental income provided by Company A to Company Z being sufficient to service the debt commitment (I acknowledge each bank will have different debt service requirements). Company Z's 10% required equity for the purchase will be 20% from my two friends, and 80% from an outside investor(s). My two friends (who 100% own Company A and 10% of equity from Company Z) and I assume the outside investors, would all co-sign the SBA loan to Company "Z", if required.
Please Help.
Thanks !
I didn't find the right solution from the internet.
