As we get settled into the new year, it’s time to start acting on our goals and resolutions. One of the best ways to create wealth for yourself is by purchasing your commercial property rather than leasing it. I’ve put together 3 simple reasons why you should consider owning your commercial property this year.
1. You’ll be paying yourself instead of making your landlord wealthy.
When you own your building, instead of paying a monthly fee to your landlord and making him rich, you’re going to be paying yourself instead. The process of buying your property may be more complex than just leasing it, however it will certainly be cheaper in the long run to own it yourself. Not to mention the money you save on rent could then go back into growing other aspects of your business.
2. Rates are currently VERY favorable.
While rates for commercial real estate loans constantly fluctuate, we’ve seen some go down to record lows. Last July, rates for the SBA 504 Loan Program (our specialty and the cheapest capital out there for CRE) fell to its all-time low in 33 years. They’ve continued to stay favorable, making now the best time to act on it. You wouldn’t want to wait and miss out on such a great wealth-creating opportunity.
3. You’ll set yourself up for the future.
Obviously, you can’t run your business forever. When the time comes to sell or pass down your business, there are different options you’ll have regarding the building your business has been paying for years. You can sell the building with the business, certainly adding a lot of value and in turn being able to rake in an abundance of extra cash, or you could stay the landlord to your business, buyer, or another tenant. Doing the latter will provide you with a steady income stream, even when you’re retired from your business.
I’ve always been an advocate for entrepreneurs owning their commercial real estate, but I can emphasize it even more in today’s economic climate. These rates won’t last forever, and the sooner you own your property, the sooner you’ll be able to begin building lasting wealth. And don’t just think we promote this, we do it ourselves.
In December of 2017, several of our team members came together to purchase our office building in Lake Mary, Florida. We practice what we preach!