Case Study: Industrial Purchase with Build Out

Uses:

• Building Purchase - $4,000,000
• Renovations/Equipment - $2,750,000
• Interest Reserve - $50,000
• Soft Costs - $50,000

Total Project - $6,850,000


Structure:

Bank Conventional Structure:

• Bank - 75% - $5,137,500
• Equity - 25% - %1,712,500

Total Cash Outlay = $1,712,500



504 Structure:

• Bank - 50% - $3,425,000
• Growth Corp - 40% - $2,740,000
• Equity - 10% - $685,000

Total Cash Outlay = $685,000


Total Outlay Savings Using the 504 = $1,027,500

 Remember...we work in conjunction with local banks, not in competition with them!