Thursday, December 8, 2011

Can property lease payments be added back to cash flow in a commercial mortgage?

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.|||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.|||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.

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