Our team at Appro would like to share some information regarding information needed to make a decision on purchasing an affordable warehouse with office. Many small business owners always run into the question of choosing to buy or lease property, and it all involves around the cost. There are certain forms of a lease, but it all boils down to buying property to own for a certain period while making payments to the owner until the lease is expired. The last thing you want to happen is to buy property and then to realize a year later that it would have been a better option to rent. To help, we gathered some good information that will analyze the right fit for your business. For most cases, you only want to lease if you plan on being in a location for a short period, and would want to buy if you plan on remaining on that location or a longer period of time. The following will help guide you through this process of finding available industrial sites affordable for your business.
Deciding to buy versus lease
- Locations are trendy, a location may be a hot spot today and gone the next.
- Loss of liquidity, a business may tie up all of their liquidity in buying real estate, and sometimes it can be hard to sell after that.
- Cash flow can become compromised, example would be a tenant not paying rent or being forced to continually make repair payments on your property.
There is the case where not everyone qualifies for traditional lending options and may want a faster way to purchase property, so using a contract for deed might be the best option. This would allow the buyer to use the property and obtain legal title from the seller when the balance is paid fully. The decisions for this mainly come down to economics, so its important to surround yourself with the some real estate experts that can help with growth forecasts and and real estate market trends.
Assembling expert help
- Accountant: can help you figure out what your business can afford and analyze an operating expense budget.
- Commercial Broker: can help you identify properties for future purchase and business.
- Lawyer: helps with negotiating on your behalf and with the overall sale transaction
- Mortgage Broker: helps with the financing options, like receiving a loan from the bank and giving them a mortgage.
It's also important that your expert help provides you with information on picking the right location. Certain zoning rules need to be disclosed to know what you can do on the property to acquire. Also, its important to know the building codes to figure out if you can make changes on the previously owned property.
We hope that this information will help you in the future when you make the big decision to but or rent commercial real estate. We thank you for your loyalty as customers and are always here to help your business!
Interested in more helpful information like this?
Be sure to check out our current list of industrial properties HERE.
Check out our "Ultimate Checklist on Office Warehouse Space"
If you are still looking for more information, or would just like to chat with a member of our team, please feel free to call us at (952) 469-2171 or reach out to one of our team members via our Team Page, or by clicking the button below: