I Sold My Porsche to Buy a Building—and I’d Do It Again

One of the biggest misconceptions entrepreneurs have about commercial real estate is that the money has to come first. You find a property. You go to the bank. The bank approves a loan. You put down the required cash. You buy the building. That is certainly one way to do it. It is not the only way.

By the time I began expanding my real estate portfolio, I had already used SBA financing to purchase my first two commercial properties. Then I franchised my company, which changed the equation. I eventually had the resources to transition those SBA loans into investor financing, allowing my franchisees to occupy the properties while I owned the real estate separately.

At that point, I had three commercial properties in prime locations. But property number three taught me something far more valuable than how to qualify for another loan. It taught me how to make the deal itself.

The Assumption: First Get the Financing

Entrepreneurs tend to think of financing as binary. Either you qualify for the money or you don't. Either you have the down payment or you don't. Either the bank approves the transaction or the property is out of reach. That assumption makes sense because most of us are taught to approach real estate from the buyer's side of the table.

• What do I need?
• How much money do I need?
• Will the bank approve me?

But commercial real estate involves another person—or institution—with a problem of its own. The seller wants something. The bank holding a foreclosed building wants something. The investor wants something. Sometimes what they need creates room for a deal that doesn't fit the standard template. That is where entrepreneurs have an unusual advantage. We negotiate for a living.

The Building I Couldn't Quite Afford Yet

My third property was a foreclosure owned by a bank. Instead of treating the asking price and financing structure as fixed, I dealt directly with the bank. The timing was difficult. I had just purchased property number two. I had franchised the company, which meant substantial legal expenses. And during the same period, I invested roughly $72,000 into custom software for the business.

I wanted property number three, but I didn't particularly want another major cash event that year. So I proposed something different.

Let me rent the property from you for one year. Lock in the sale now. Give me a delayed closing. At the end of the year, I'll buy it. They agreed.

I operated from the property for a year, then closed with 20 percent cash down and financing from another bank. I happened to catch the transaction at a particularly fortunate moment when the bank was willing and able to structure its foreclosed property that way. There was still one problem. I needed the down payment.

At the time, I owned a Porsche that I absolutely loved. But apparently I loved the building more. I sold the Porsche and put the money into the property. The Porsche was a depreciating luxury sitting in my driveway. The commercial building could become an income-producing asset sitting on my balance sheet. That wasn't much of a contest.

Then I Did It Again in Atlanta

Property number four came when I opened a new location in Atlanta. This time the property wasn't owned by a bank. It was owned by a family investment firm, which created a different opportunity. I proposed putting $50,000 down if they would finance the property themselves with a two-year call on the loan. In other words, they gave me two years to replace their financing with traditional long-term financing.

Why was that valuable? Because the new Atlanta operation needed time to develop cash flow. Instead of waiting until the business had already produced the financial history a conventional lender wanted, I negotiated enough runway to create that history. Once the location was operating successfully and producing revenue, I took the deal to a bank. The bank refinanced the property long term.

Again, the financing did not create the opportunity. The structure created enough time for the financing to become possible.

Bring Something to the Table

This is the principle behind Lemonology® Strategy No. 14: Bring Something to the Table. When my credit was terrible during the early years of building my company, I couldn't always bring pristine financial statements or a beautiful credit score to a negotiation. But I could bring reliable recurring revenue. Later, I could bring cash. Operating history. A growing company. A franchise system. A significant down payment. A willingness to accept reasonable terms.

Leverage does not always look like money. Sometimes it is cash flow. Sometimes it is timing. Sometimes it is certainty. Sometimes it is your willingness to solve the other party's problem. Sometimes it is $50,000. Sometimes it is selling your Porsche. The mistake is approaching a negotiation thinking only about what you need.

Old wiring:
I don't have the financing, so I can't make the deal.

The rewire:
What does the other side need, what can I bring to the table, and can we structure a deal that creates value for both of us?

That question opens possibilities a loan application never will.

The Gambit

The next time an opportunity appears financially out of reach, resist immediately asking, “Can I afford this?” Ask something more entrepreneurial:

What would have to be true for this deal to work—and what can I bring to the table to make that attractive to the other side?

Maybe the answer is still no. But don't let conventional financing make that decision before you've even started negotiating. That is part of the rare psychology of disruptive entrepreneurs. They don't merely search for available paths. They learn how to construct one. And sometimes, apparently, they sell the Porsche.

FAQ

Can you buy commercial real estate without traditional bank financing?

Yes. Depending on the seller, property, and your financial position, commercial real estate deals can sometimes be structured through seller financing, delayed closings, lease-to-purchase arrangements, private financing, or other negotiated terms. The key is understanding what the other party needs and bringing enough value to the table to make the structure worthwhile for both sides.

What is creative financing in commercial real estate?

Creative financing simply means structuring a transaction outside the standard “bank loan plus down payment” model. That might include seller financing, delayed financing, leasing before closing, private capital, or negotiating terms that give the buyer time to improve cash flow or qualify for conventional financing later.

How do entrepreneurs create leverage when buying real estate?

Leverage is not limited to having a lot of cash. Strong revenue, operating history, a meaningful down payment, reliable tenancy, flexibility on terms, speed, or solving a problem for the seller can all create leverage. The better question is not just, “What do I need?” but, “What can I bring to the table that makes this deal attractive to them?”