Agree with Jerome, and I would add to that is that you would qualify for SBA if you occupy only 51% of the building as a coworking space and rest can remain as regular tenants if they already exist, say hair salon or a retail store, office etc.
My Best, *Hasan Mirjan* *SphereMail.co <http://spheremail.co/>* Santa Monica,CA US: +1 888 818 6477 UK: +44 1423 222437 *PATENT PENDING U.S. 62672753* On Thu, May 23, 2019 at 1:10 PM Sphere Mail <[email protected]> wrote: > I managed to acquire two buildings through SBA as a coworking space > operation. One thing you need to make sure is that you make it clear to the > bank that it is not a landlord/tenant relationship but rather a membership > based service similar to a gym membership. In addition you are offering > other services such as virtual mail, visrtual office, conference room > rentals by the hour, and you may add a coffee stand as well, selling > coffee. Banks still need to be educated in this regard. If the bank you're > working not convinced go to another bank. > > Hope this helps. > > My Best, > *Hasan Mirjan* > *SphereMail.co <http://SphereMail.co>* > Santa Monica,CA > US: +1 888 818 6477 > UK: +44 1423 222437 > > *PATENT PENDING U.S. 62672753* > > On Tue, May 7, 2019 at 8:49 AM Denis Clijsters <[email protected]> > wrote: > >> Sounds like a plan! >> >> Actually that's more or less the set-up we have now. >> >> I own the building 50/50 with an investor, and I own the coworking 50/50 >> with another person and we lease and sublease the space, furnish it and >> organise activities etc... So it's a little more dubious. But good plan to >> always refer to memberships on our contracts and invoices (I'll have to run >> that by our attorney though first) >> >> >> >> On Tue, May 7, 2019 at 9:44 AM Jerome Chang <[email protected]> >> wrote: >> >>> Please be careful when you say “rent” as that invokes state regulations >>> regarding your “tenant’s” occupancy. >>> Most/all coworking spaces uses “memberships” like one would join a >>> country club. >>> Therefore, to get this 504 loan, I would recommend using another LLC to >>> legally “rent” out the entire building, then have this LLC provide >>> memberships to these member occupants. >>> >>> Now, the bank should see that you, via your new LLC, are indeed >>> occupying >50% of the building. :-) >>> >>> >>> >>> *JEROME CHANG* >>> >>> talk to us: (323) 330-9505 >>> chat w/ us: http://www.BLANKSPACES.com/chat >>> <https://lc.chat/now/7173741/> >>> >>> *Santa Monica* | *Culver City* | *Downtown LA* |* Pasadena* >>> *NOW OPEN: Larchmont | Irvine* >>> *OPENING SOON: **Long Beach* >>> >>> >>> >>> On May 7, 2019, at 8:31 AM, Denis Clijsters <[email protected]> >>> wrote: >>> >>> Hi Scott, I would be curious to know how your experience went! >>> >>> I'm currently starting up a coworking space, we already own the building >>> but we're looking for money for renovations. One part I inquired for are >>> solar panels, and the 504 sba green loan, but there I've been denied >>> because I don't occupy the building myself for +50%, since we rent out to >>> individual businesses, and gradually as we're expanding, more and more to >>> coworking members. >>> >>> I agree with your reasoning that coworking isn't just real estate, but >>> it's a business in itself that definitely isn't a passive investment! >>> >>> Thanks, >>> Denis >>> >>> On Tue, May 7, 2019 at 8:24 AM Scott Tillitt / BEAHIVE < >>> [email protected]> wrote: >>> >>>> I’m exploring getting an SBA 504 loan >>>> <https://www.nybdc.com/about-us/SBA-504-Loans_54_24_sb.htm> to >>>> purchase the building I’ve been in for 10 years. They’re arguing that >>>> coworking isn’t eligible, as it’s a passive business, primarily engaged in >>>> real estate in which we lease (license) it out to accommodate independent >>>> businesses that provide services directly to the public. >>>> >>>> I think those of us who own or manage coworking spaces would not call >>>> it passive… but has anyone had any experience successfully navigating this? >>>> >>>> Thanks! >>>> scott. >>>> >>>> - -- - >>>> *SCOTT TILLITT* >>>> PR yogi + social entrepreneur + community catalyst + meditator >>>> // Facebook <http://www.facebook.com/scott.tillitt> / LinkedIn >>>> <http://www.linkedin.com/in/tillitt/> // 917.449.6356 >>>> >>>> BEAHIVE <http://www.beahivebzzz.com/> // pioneering spaces for work >>>> + community + possibilities >>>> >>>> *ANTIDOTE COLLECTIVE* <http://antidotecollective.org/> // >>>> communications + projects for a better world >>>> >>>> >>>> - -- - t h i n k / f e e l - -- - >>>> "...an idea or product that deserves the label 'creative' arises from >>>> the synergy of many sources and not only from the mind of a single person." >>>> — Mihaly Csikszentmihaly >>>> >>>> >>>> -- >>>> You received this message because you are subscribed to the Google >>>> Groups "Coworking" group. >>>> To unsubscribe from this group and stop receiving emails from it, send >>>> an email to [email protected]. >>>> To view this discussion on the web visit >>>> https://groups.google.com/d/msgid/coworking/50500562-0730-42EE-AC0C-EBD0950E067D%40beahivebzzz.com >>>> <https://groups.google.com/d/msgid/coworking/50500562-0730-42EE-AC0C-EBD0950E067D%40beahivebzzz.com?utm_medium=email&utm_source=footer> >>>> . >>>> For more options, visit https://groups.google.com/d/optout. >>>> >>> >>> -- >>> You received this message because you are subscribed to the Google >>> Groups "Coworking" group. >>> To unsubscribe from this group and stop receiving emails from it, send >>> an email to [email protected]. >>> To view this discussion on the web visit >>> https://groups.google.com/d/msgid/coworking/CAOC9UqPhZAGf%3DF_2A-3CWnoyx--YDoXoTnVXGPBv0EMgx52JCA%40mail.gmail.com >>> <https://groups.google.com/d/msgid/coworking/CAOC9UqPhZAGf%3DF_2A-3CWnoyx--YDoXoTnVXGPBv0EMgx52JCA%40mail.gmail.com?utm_medium=email&utm_source=footer> >>> . >>> For more options, visit https://groups.google.com/d/optout. >>> >>> >>> -- >>> You received this message because you are subscribed to the Google >>> Groups "Coworking" group. >>> To unsubscribe from this group and stop receiving emails from it, send >>> an email to [email protected]. >>> To view this discussion on the web visit >>> https://groups.google.com/d/msgid/coworking/C5C51B39-E6A3-4D40-A75E-32CD8D304F94%40blankspaces.com >>> <https://groups.google.com/d/msgid/coworking/C5C51B39-E6A3-4D40-A75E-32CD8D304F94%40blankspaces.com?utm_medium=email&utm_source=footer> >>> . >>> For more options, visit https://groups.google.com/d/optout. >>> >> -- >> You received this message because you are subscribed to the Google Groups >> "Coworking" group. >> To unsubscribe from this group and stop receiving emails from it, send an >> email to [email protected]. >> To view this discussion on the web visit >> https://groups.google.com/d/msgid/coworking/CAOC9UqOiVQoR6P5FfHto2z%3D%3DVm7jMunGFXAJ6ZdKA2s3RdN3PQ%40mail.gmail.com >> <https://groups.google.com/d/msgid/coworking/CAOC9UqOiVQoR6P5FfHto2z%3D%3DVm7jMunGFXAJ6ZdKA2s3RdN3PQ%40mail.gmail.com?utm_medium=email&utm_source=footer> >> . >> For more options, visit https://groups.google.com/d/optout. >> > -- You received this message because you are subscribed to the Google Groups "Coworking" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. To view this discussion on the web visit https://groups.google.com/d/msgid/coworking/CANdm9sxeD66spmfb_wm1B5d%2BAC4FJZE01RJ7dHx%2Bv6_aP5bNUw%40mail.gmail.com. For more options, visit https://groups.google.com/d/optout.
