Store & Apartment financing.
So you have a retail store that is doing fine, has been keeping you busy for the past couple of years, sales are going up and your break even ratio is getting lower, but you are still paying rent.
You could choose what seems to be the most comfortable, secured and logical option and continue renting, after all business seems to be going well.
However, are you sure that with this decision that the profits that your business is generating are being wisely invested or could it be that they are becoming the profit of your landlord?
My barbar told me: “Please help me out, I’m paying to much per year for rent”
Now, calculations have to be made (I can help you with those), but did you know that with the current low mortgage rates, the amount that your business is paying for rent is about the same amount that your monthly payment would be to pay back your commercial mortgage?
In this times of low mortgage rates, your business’ cash flow is not affected in a great deal, however by adding the equity gained to the results on your business’ balance sheet, the growth will prove to be stronger, and isn’t that what your business if working hard for?
Considering risks? Oh, yes, they are important, and they are greater risks when renting than when owning, remember, when you own, you have control on the property, when you rent, you don’t.
You may want to add that there are properties that besides offering you the retails space that your business needs, they also come with a apartment that you can rent out giving you the extra income your business needs to cover the cost of borrowing.
So, whether you are a barber, a lawyer, a doctor, own a retail store or something else and are renting a office, retail store with apartment, consider the advantages of owning rather than renting
If you are interested in a store front with apartment, a single retail space, a office, a building, a industrial storage or other kind of commercial property to purchase, do not hesitate and ask me any questions you may have