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All you Should Know Before Buying Commercial Real Estate.

Posted by nick_niesen on November 8th, 2010


All you Should Know Before Buying Commercial Real Estate.


Buying or renting Cameron Brannagan Jersey , such is the question many business people ask themselves around the 1st of the month, when comes the time to write their rent's check.


With the interests rates being what they are and prices being affected by the commercial paper crisis, the answer might very well be yes if the right property becomes available and you can afford a relatively important cash down.


Owning commercial real estate does have it's advantages.
Choices: as the owner, you can decide whether to select a building that matches your current needs, has enough room for future expansion or maybe is large enough for you to lease parts of it.


Equity: every month, your payments are applied to paying down your mortgage and building some equity which could be useful eventually to secure a loan for new equipment Blank Jersey , to finance an acquisition or simply as an asset.


Appreciation: not withstanding any unforeseen occurrences, your building should appreciate with time. This appreciation could, just as the above mentioned equity, be used to get better financing conditions.


Power: as the landlord, you are the person in charge of deciding how to finance the building, picking the tenants Ben Woodburn Jersey , choosing the decorations, selecting entrepreneurs for the work to be done, improving the building. You even have control over your rent's rate.



If it's so great, why doesn't everyone do it?


The main reason why not everyone owns the commercial space they're using is that, in real life, thing don't necessarily go exactly as in late night's infomercials聟


You can buy commercial real estate with no money down Andrew Robertson Jersey , especially if it's because your money is bringing you more in another (safe) investment.


On the other hand, if it's because your cash flow doesn't allow you any flexibility and that you don't have anything aside should things go a little unexpectedly, then you may want to seriously consider all the ramifications of the deal you are considering.