Posted by JohnBoy on April 19, 1999 at 09:33:50:
See if the church would allow the bank to put a lien against the property for security. Then adjust your lease with the church to offset the difference on your payments and your original lease.
So if your lease was say, $1,000 a month and a new loan payment would be at $500 a month, write a new lease with the church that puts your lease payment at $1,500 a month. The church would qualify for the loan since they have a lease with you covering all the debt service plus a positive cash flow.
If the church doesn’t want to sign for a loan then see if they would be willing to at least subordinate to a new first mortgage with the bank if you sign the mortgage. If you have a long term lease the bank will allow the owner of the building to subordinate to a new mortgage against the property.
I talked to a banker on something simular to this. There was a shopping center that I wanted to build my own building in front of at the corner of their parking lot. The owner of the center wasn’t interested in building a building to lease out to me. They would have been willing to lease the dirt and allow me to build my own building on their property. The bank would do a loan to cover the cost of building the building, but only if the owner of the shopping center would subordinate their interest on the dirt so the bank could put a first lien against the property.
It will just depend on the church and there motivation to lease to you.