real estate agency

entrepreneurs often should think whether they are building their own business or lease is occupied. Common sense would be that the entrepreneur should buy the system and" self-pay "rent and thus long-term equity. Large decision like this, are rarely that simple and have both objective and subjective factors, further cloud the issue.

For example, objective factors include financial constraints (I can really have enough money?), Tax advantages (Is my company really have enough money to enjoy the tax shelters?) Possible long-term equity build up (Is my local real estate market to grow or shrink ) or growth takes place (do I need for a bigger building in the short term?). Subjective factors include corporate image, or pride of ownership, etc. forces outside the entrepreneur's control, such as the general economy, interest rates and the future potential recognition (or depreciation), complicated the question.

For many entrepreneurs, the question really about A. I have the necessary 10-20% and to as my company can really afford to absorb this cash into the property? Commercial Real Estate is not liquid. And once in cash, there are only 2 possibilities to it. 1. Get a new loan of 2 Sale of real estate. When buying a property may mean that your company will be cash poor, you can either purchase your plans to keep, you find a lower price or scrap the property total.

Where payments borrowers can still fixed rate financing at 90%. In fact, it is still common to 90% loan to cost financing. Meaning, if you buy a property at $ 1,000,000, and it requires $ 300,000 in improvements / build outs. You can use 90% of the financing of $ 1300000 and would only be out of his pocket $ 130,000.

Many entrepreneurs are curious if there is a cash flow savings in the monthly payment by the owner. Taking the current interest rates and usually answered. Although it is obvious that the borrower shall submit, the longer the payback period and the lower the rate - the lower the monthly payment. But it is common practice in parallel with the 6% 's to see a small cash-flow savings if the loan to 90% with 25 years or longer repayment plan.

Another aspect of the money growth plans. When the company at the beginning of cycles and expected to accelerate as the entrepreneur should have an idea of what he will do with the construction, if they are on - rent, sell, or a portion of their activity. These are simple questions with complicated answers.

For example, if the plan is to lease and move to a bigger, how long does it take to rent it. Who really knows? It is not unusual for the 6 -12 months to rent a commercial property. How painful it is for the owner? Can he really afford?

Jeff Rauth is President of Commercial Finance Advisors, Inc. of Birmingham, Michigan. He specializes in commercial real estate loans between $ 400,000 - $ 5,000,000. Offers unique loan programs such as second mortgages, commercial 30 years fixed and 90% non SBA financing, Commercial Equity Lines. 248 885-8797 In addition, they have a commercial mortgage broker STORE training books, legal documents, spreadsheets, etc., the broker must. Prices start at only $ 4.95! Check it out:
commercial real estate loans or hard money commercial loans