expand your growing business? Then, let’s go over all things commercial.
can be two-fold—you get to be your own boss and you are following your dreams.
Well, the good news is if you are in the market for commercial real estate loans than chances are you
are doing something right.
Generally, the first thing you
need to know about commercial real estate loans is whether or not you are in
the market for owner-occupied loan options or investment property loans.
for a commercial building that will have more than 51% of the space occupied by
the owner (hint: since you are making the
transition from startup to small business, owner-occupied loan options will
often help keep the cost low due to the additional tenants). An investment
property loan for a commercial building, multi-unit store front or office
complex, on the other hand, can be used to buy or refinance. This particular
type of commercial loan generally has higher rates and a balloon payment that
tends to be due sooner rather than later. But, nevertheless, an investment loan
is just that an investment. In other words, you would typically consider this
loan option if you were not interested in occupying the property.
small business, as previously mentioned, it is all about the owner-occupied
loan options. Thus, with that being said, the next step in all things
commercial is deciding if the benefits outweigh the costs (literally).
The Benefits of Owning Your Business Location
If you have already done a little bit of research then
you are more than likely aware of the numerous benefits of owning commercial
real estate such as the lucrative tax advantages, asset appreciation, leverage,
high cash yield and of course a clear indication of overhead costs i.e. your
business is essentially rent controlled. These benefits are even more lucrative
for a startup or small business as owning your business location will allow you
to create capital for a variety of business expenses as well as foster an image
of progression and durability in your brand. The best way to purchase commercial space is with commercial real estate loans.
Of course, that’s not to say there
are no disadvantages to owning your business location, especially when you are
first starting out. Remember, commercial loans involve additional costs and
fees, title work, appraisals as well as full documentation. In fact, many
startups and small businesses simply may not be ready to take own the financial
responsibility (various fees, depreciation, borrowing capacity, etc.) or the
property management and maintenance that comes with commercial ownership.
Consequently, it is always in your best interest to weight the pros and cons
before you make your next venture.
If you are ready to take the next step with commercial real estate loans, call our office today!
Well if you decide commercial real estate loans are right for you. Then your next step
is to reach out people that know the business. This means working with a real
estate company that can not only meet your needs but one that ultimately
understands your needs.
Dennis Dahlberg Broker/RI/CEO/MLO
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701