Tommy Dobczyk breaks down a lease financing trick: pay three years upfront with a small-business loan, get a 20% rebate from the landlord, and you've covered your rent for free. The rebate is a lump sum, not a monthly discount, so your cash flow stays intact.
He's bringing a 20% discount. Would that be like if you have a long-term tenant, so they're not actually charging just monthly, they could actually keep the same rate over that amount of time? Is that what this—
what they would do is they would, they would sign a, it would be a signed lease for 3 years. They would pay it all up front and then we'd give them 20% back and then they wouldn't have the lease payment for 3 years.
Okay.
Right. So, and that's because what they're able to do is they're able to go get a small business loan for $100 grand and that'll take care of their rent for a year or for 3 years. They don't have a rent payment. Rent payments are a big part of overhead when you can put that overhead back into the company, it compounds, right? So if you're able to keep $3,000 a month in your pocket and put that back into the company and it compounds instead of go to, go to a lease, whole different ballgame, right? So, and it really does make a difference.
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