Getting Loan or Mortgage From Holding Company

Discussion in 'Growing and Managing a Business' started by bionix, Jan 28, 2012.

  1. bionix

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    Jan 28, 2012
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    (Note: I live in Ontario, Canada).

    I own 50% shares in a holding company (HC) that owns property worth about $2m. The property consists of two industrial/commercial buildings that are fully clear with no liens. The tenant is a company (TC) owned by my partner in the holding company (I sold my half of TC to him a few years ago.)

    I want to take out a loan or mortgage of $100k against the security of the buildings owned by pay down personal debt. The problem is that all the lending institutions want not only financial statements from HC but also from TC and even personal net worth statements of myself and my partner.

    The problem is that my partner as owner of TC is not willing to provide financial statements and a personal net worth statement. He will not sign a personal guarantee. He wants to keep things simple. He will however co-sign as owner of HC.

    Question #1: where can I find a lender who will give HC a loan or mortgage backed by the security of the buildings alone without getting into all the other paperwork?

    Question #2: What else can I do to get money from the buildings?

    We plan to sell them in 2 years but i can't wait that long.

    Thx for any advice.

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