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4th Mar 10
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Author: Ken Kaplan
I already feel your skepticism.Buy commercial real estate? This year? Does this man know that the posts are skyrocketing, unemployment is rising and the market's view is that the commercial real estate is "the next shoe to drop"? Actually, I do, and I want to be very specific about my strong Buy recommendation.This article is especially for entrepreneurs who are currently leasing space, and which will also be a business for at least the next 10 years.
If that you, the rest of 2009 may be the best buying opportunity you will see in their own lifetime.Consider the following: 1) You need a place, how tax shelter benefits real estate investment property ownership
, to use the Business This may seem obvious, but if you've created a shop in your home, every business needs a space operate.
You ve already decided to be in business, now you must choose either to rent or own your home space.Real property rental costs, how tax shelter benefits real estate investment property ownership
, are usually the third largest business expense incurred (in the payroll and taxes). On average, the lease payments tend to rise 3% or more per year, which year.Finding the ideal place to buy can be converted to large, continuously rising costs into investments that will one day readmission, hopefully a nice profit when property.
Furthermore eventually sell, you must own all the tenant improvements property you do not ever need to worry about the lease is not renewed or the property has been sold out of your business.Don 't underestimate the pride of ownership you feel your business and the owner of the place where your business operates .2) We are Buyer's Market This year is clearly a bad year, many commercial Property Investors, rental prices have fallen and, how tax shelter benefits real estate investment property ownership
, jobs have high.
These investors, as opposed to business owners, will depend on rental income from their property will pay the mortgage. The majority of the investment property loans balloon payment every 5, 7 or 10 years. In today's volatile market conditions, banks are very cautious and property valuations, and re-financing of investment properties is more difficult than ever.Many investors must sell the properties, even though they have positive cash flow, because there is no available financing.
As result has many opportunities for acquisitions of historic low prices in relation to the cash flow they generate . The investor's challenge is to opportunity.As you a business owner, you can use your company's cash flow to mortgage expense.There have a good chance that you're already spending the most, if not all of the mortgage payment rent.3) Short-term fluctuations in value Do not MatterThe the idea is not that the owner of the place is somehow immune to the real estate down market cycles.
The point is that a business owner you do not particularly care, because you do not intend to sell in the short term. Certainly all the property owners wish to enjoy the increase in property values, but the owner of properties in use are not everyday concern.4) Traditionally, a significant decrease in HedgeCommercial Real Estate has a long history is a good inflation.Over to protect themselves in the long term, commercial properties generally increase in value, which amounts to about two per cent greater than the amount of the deficit inflation.
Large combines a huge increase the money supply lead to high inflation will be at some point. It has already been baked into the economic cake. When inflation hits, you'll need a commercial property becomes more valuable.Additionally, you must pay for your mortgage dollars that are increasingly less valuable.5) Outstanding exit strategy OptionsWhen you one day decide to retire, own property offers a number of interesting alternatives.
You can sell the business and lease the property to the buyer, sell business assets, increasing business value and to make the measure easier to finance, or sell the business and assets of different buyers.6) Make Your Accountant HappyProperty ownership offers a number of tax advantages and helps to protect the company income.Interest reductions depreciation, 1031 exchanges and other benefits will help you keep more earn.
Speak what your accountant to get a better idea of how the commercial property owner can help you keep more income and reduce taxes burden.7) Excellent financing options are AvailableOutstanding financing options are currently available so that business owners purchase or refinance owner's use of commercial properties.Several underutilized loan program can provide up to 90% of the financing of qualified projects.
These loans are fully amortizing, so you do not have to worry about in front of a balloon payment either.It is hard to have the courage to invest in commercial real estate when the market turmoil, but I urge you to consider just that. Benefits of ownership are compelling and the timing is right.
Get your FREE 17 page Special Report “How to get a Great Commercial Loan: Commercial Mortgage Secrets Your Banker will be THRILLED You Know” at http://www.fastcommercialmortgages.com/commercial-loan.html
Ken Kaplan provides dependable financing options for business owners and investors looking to acquire or refinance commercial property. He specializes in loans between $150,000 and $5 million and typically delivers higher loan amounts and more flexible terms than most banks are willing to offer.
Contact Ken for free input on any commercial real estate transaction. He loves working with business owners, talking deals and connecting with others interested in any aspect of commercial real estate.
Source: ezinearticles.com
