Three proven paths to owning the building your business occupies, each with unique advantages.
Own the building in a separate entity, lease it back to your operating company, and unlock powerful tax benefits on both sides.
You create a separate LLC (the real estate holding entity) that purchases the building. Your operating company then signs a market-rate lease with the holding entity. The result: your business gets a fully deductible rent expense, while your holding entity collects income and claims depreciation, interest deductions, and all property-related write-offs.
If structured correctly, you can perform a cost segregation study on the building and accelerate hundreds of thousands in depreciation deductions into the first few years of ownership.
Put as little as 10% down on a commercial building using government-backed financing with below-market fixed rates.
The SBA 504 program is specifically designed for owner-occupied commercial real estate. The structure: a conventional lender provides 50% of the project cost, a Certified Development Company (CDC) provides 40% backed by the SBA, and you provide just 10% down.
The CDC portion features a fixed rate for 20 or 25 years, often 1-2% below conventional rates. This means lower payments, fixed costs, and more capital to invest back into your business.
Use your retirement funds to purchase the building, building tax-free wealth while your business pays rent into your own retirement account.
A self-directed IRA or Solo 401(k) can purchase real estate, including commercial property. Your retirement account buys the building, and your business pays fair-market rent to the IRA. That rent grows tax-deferred (traditional) or tax-free (Roth) inside the account.
The Solo 401(k) option is particularly powerful because it allows participant loans (up to $50K) and has higher contribution limits. Combined with a checkbook control structure, you can move quickly on deals.
The book breaks down decision frameworks for choosing between these strategies based on your business stage, financial position, and long-term goals.
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