Is It time to Buy a Commercial Investment?
Perhaps you are ready to dive into the world of commercial real estate, or you are a business owner looking for a positive way to scale your business. Here are a few questions you should ask yourself to determine if it is time to buy a commercial investment.
Can you afford a mortgage payment? Take the time to crunch the numbers. Can your business afford a monthly mortgage payment, while continuing to have a positive cash-flow? What other risks could arise if you took on a mortgage?
Do you have enough cash? Most commercial investment purchases require at least twenty percent down, before you can leverage the rest with a mortgage. Do you have enough cash? Will this large amount drain your cash reserves? How quickly can you recoup the cash expense? Before you purchase a commercial investment, make sure you are not putting your business at a potential cash flow risk.
Is it a good investment opportunity? Sometimes opportunity knocks before we are ready, and a good investment property may be right in front of you. Research the commercial real estate market to ensure that prices and interest rates are in your favor. And calculate in other cost factors like moving expenses, potential improvements or renovation costs. Don’t be afraid to make the move, if it makes sense for your business.
Do you need the tax write-offs? Owning a commercial property can help to reduce your tax expenses, especially if your business is profitable. Owning a commercial property creates a tax write-off in the form of annual depreciation. For more specific tax benefits from owning a commercial property, we recommend you speak to a qualify tax representative.
Owning vs. Renting: Do you want more control? Some business owners want complete control over their space, including the look, feel and functionality of the commercial building. When you rent a space, you are limited on what you can or cannot do for use, improvements and design. If you find yourself needing to do things your way, then owing your own commercial building may be the solution for you.
Will owning your own commercial building help your business grow? You will want to consider the future of your company before you make the leap into commercial building ownership. You will want to consider the current space you occupy – is there room to grow or are you busting at the seams? If you need to move now, but know that your business will continue growing, you will also want to consider maximizing your available space to accommodate future growth.
For more than forty years, the Knipp name has been helping landlords and investors with their real estate development needs, and navigating the commercial real estate market with ease. We invite you to visit us online at www.KnippCommerical.com and view our online portfolio.
Whether you are looking to renovate your office space or break ground on a commercial real estate project, our team of experienced experts are ready to help you with all your construction and real estate development needs. We look forward to hearing from you soon!