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Separate the Business Purchase From the Property Debt Decision

By Don McClain | Founder & Principal, Medro Advisors. When a business transaction includes related real estate, identify what transfers, which entity owns and borrows on the property, and what debt must be released. If a seller expects a refinance to support the ownership transaction, treat those proceeds as an unresolved dependency until verified. Avoid counting property equity twice. Separate the property closing conditions from the funds needed to operate the acquired business.

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