Can property lease payments be added back to cash flow in a commercial mortgage?
March 30, 2011 by Cash Flow Tips
Filed under More Cash Flow Answers
Can you answer BuzzBee’s question about Cash Flow?:
If an established business exists on a leased property (and will be moving into the new property after closing), can the lease payments be added back to the cash flow when determining the approval amount for loan?
If an established business exists on a leased property (and will be moving into the new property after closing), can the lease payments be added back to the cash flow when determining the approval amount for loan?
I will not renew my lease if I can find a nice piece of commercial property.
I dont understand why not. To me it is like telling a renter interested in purchasing a home that their qualifying amount is based on their income AFTER they pay their rent. It doesnt make sense. The only difference is that the business owner can take that expense off their taxes.
Small Business Cash Flow Management
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Cash Flow Feedback: No. Anything a lesse pays goes to the owner. You receive no benefit from it as the tenant. Maybe less tax as it is a business expense.
Cash Flow Feedback: You need to state your question more clearly. Are you asking if the rent you currently pay would be considered part of the income of the buisiness? The answer would be yes. You have asked the question in a way that would be hard to understand.