Imagine for a minute that six months from now you are pulling up to your reserved parking spot in front of the building you just bought. The landscape is perfectly manicured, and your brand-new company sign is front and center.
I’m sure given the chance you want to make a better impression for customers or clients…Or create a great place for you and your employees to work!
While I was a commercial real estate broker, tenants constantly complained about their landlord issues. The conversation usually turned to me asking the business owner if they ever considered owning their own building. To my surprise many never even considered it…thinking owning commercial real estate was out of reach. But, all along they ignored a lucrative investment opportunity literally right underneath their noses. An opportunity to purchase their own building and pay rent to themselves instead of some landlord that could really care less about their business.
Here’s an exercise: think about the amount of rent you pay each month and multiply that by the number of years you plan on being in business. That money could be diverted to YOUR real estate investment! That’s not even to mention potential tax benefits that come along with owning real estate.
Taking it one step further, deal structures exist where business owners can walk into a property that has available space for their company to occupy AND has existing tenants that currently pay the property expenses including mortgage. If you decide to rent out space to other tenants (which I recommend) you can keep them on short term leases giving you the most flexibility. As your company grows or contracts you can either take over more space or lease offices out to tenants that will pay you rent. This option reduces your “effective rent” making it an even better deal. Talk about the best of both worlds!
Often times, the first person many entrepreneurs turn to about buying a building are the wrong people because they only handle one aspect of a potential transaction. Your lawyer, accountant and commercial real estate broker are important parts to the equation but don’t offer much strategy. What you do need is someone to quarterback the whole process for you and make sure you don’t get hurt. A lot goes into doing this the right way, but I promise if done right you’ll be addicted to investing in commercial real estate.
Think about the feeling you’ll get when you control your businesses’ footprint. If you’re an establish entrepreneur and would like to have a quick conversation about how this might work for you, reach out.