Properly spent capital grows the company while securing the business against risk. A commercial real estate loan is a great example of this type of capital.
One of the hardest parts of running a business is knowing when (and when not) to be ambitious. Stagnant businesses die, but those that grow to quickly or without enough direction can end up collapsing under their own weight. Finding the balance, finding a way for change and stability to co-exist, is one of they key challenges that leadership must become adept at overcoming.
Creating risk-free opportunities out of thin air is impossible, but there are several ways that companies can invest in themselves in a way that mitigates these risks. Taking steps to move into the commercial real estate industry is one of those proven strategies. Here’s why taking out a commercial real estate loan and making a strategic investment is such a popular approach.
1. Reliable Revenue Stream: The most common use of a Texas Commercial Loans is to finance the purchase of a building that will be predominantly used to host other businesses. These businesses pay rent to the owner of the building, allowing real estate assets to produce predictable monthly revenue for their owners. Whether the company desires to own the building outright or resell the building after building up the property’s value, real estate assets hold unique value in any company’s financial portfolio.
2. Flexible Risk Protection: Successfully preparing for the future is what separates the bustling businesses from the bankrupt. That being said, commercial real estate assets act as more than sources of revenue. They also act as a safety net when a business hits a rough patch. Whether unexpected setbacks inspire a company to rethink their immediate plans or their entire business strategy, real estate assets can provide breathing room in times of emergency. Both as a source of revenue and a potential pivot point for the company’s next direction, real estate assets are a very valuable during times of crisis.
3. Unique Network Opportunities: Revenue and financial security are the best known advantages of investing in real estate, but they are just two examples of many. For example, through the management of a commercial office building, your company gets multiple opportunities to interact with tenants across multiple industries. Any of these relationships could become a rewarding opportunity for your company down the road.
4. Increased Public Visibility: It’s hard to beat the visibility and prestige that comes with having your company’s name and logo emblazoned across the side of a beautiful, state-of-the-art facility. By making investments in commercial real estate, your company has the ability to expand awareness of its brand in new, exciting ways. Putting the name of the company on a building it owns is just the tip of the iceberg. As both industry expert and commercial real estate operator, your brand demands that much more respect.
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.