ROBBS process ownership?

[InnDeep]

For those of you here who may have also bought your B &B via the ROBBS process, may I ask if you bought your property personally or if your C Corp bought it? I’m trying to sort out how our purchase should be structured. Getting totally confused this amTIA.

I thought I remembered someone here saying something about leasing back from their corporation...

 

[GoodScout]

Your final lender may end up having some say in it if you're applying for an SBA loan or additional financing. Some lenders will let you buy it as a sole proprietorship, or even an LLC.

The SBA (at least back in 2012) would not let you structure the package where you own the property and lease it to a separate LLC or C Corp. The entity that owns the business has to also run it, according to SBA.

We had an LLC all ready to go and at the 11th hour were told we needed to have a C-Corp to own and run the business.

Don't forget that when you set up your ROBBS, it's essentially a Retirement Fund, the same as any 401k company like Fidelity or TD Ameritrade. Your ROBBS company will set up that retirement company and run it for you. Then that retirement company will buy stock in your LLC or C-corp just like it was buying stock in Apple or GM. That's how you get the capital to buy (or put a down payment down) on your new business!

 

[InnDeep]

I just re-read your response GS. Now I understand better. Thank you. Very helpful.

 

[InnDeep]

Thanks again. Figured it out. Have to take title as a corporation. Then we will lease our owners quarters back from the Corp. this last final phase before closing has been a whirlwind -phew!