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| Office/Warehouse Condo's - Today's Property Type Choice Of Small Business Owners | September 19, 2008, 2:57 am | visits: 16 | wordcount: 492
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By Marlon Baugh
Today more and more small business owners, including Accountants, Doctors, and Lawyers are taking advantage of great mortgage programs and low interest rates on commercial real estate. Commercial Real Estate has far surpassed the appreciation of residential real estate and has put commercial real estate property owners on the fast track to building wealth. Commercial Real Estate has proven over the years to have one of the best returns on investment.
The benefits of buying versus renting normally out weighs renting. When the cost is compared for renting versus buying commercial property, it is not uncommon for the mortgage payment to be significantly lower, even with taxes and insurance included. As the property owner you can now pay yourself rent versus a landlord and invest in an appreciation assets that will build equity and that provides numerous tax advantages that renting doesn't allow.
A lot of purchasers for these commercial condos are not just buying one, but instead buying two units and more commonly the adjoining unit. That way they can occupy one unit and rent the other and in some cases the rent payments are more than enough over very close to paying for the expenses of both commercial condo units. The other thought process behind buying too units is for business owners that feel they will need to expand with a few years and this way they can buy the necessary space and receive rental income until the business has grown to the point where it needs to occupy both units.
Office/Warehouse condo's makes the cost of owning commercial real estate affordable for small business owners, especially if you can get in during the pre-construction stage. The are numerous advantages to buying a commercial condo, such as adequate parking for you staff and clients, building security and maintenance and most importantly they are normally located in prime locations, for example: Doctors can find an office condo close to hospitals and lawyers can find locations close to the court house.
Most business owners shy away from buying commercial real estate as they assume that they will have to come up with a large down payment and they don't want to part from this money as they rather remain liquid. But for commercial condos, there are loan programs that don't require the large 30 to 50% down; instead there are loan programs that allow for just 10% down. Now it's important to also note that we use a Loan-to-Cost versus Loan-to-Value and include such things as the build out and other cost in the purchase price. These programs will help minimize the use of a company's cash reserves.
It is important to work with a commercial loan specialist, because as a business owner your time is a precious commodity. Hence using a residential mortgage brokers to arrange financing on commercial real estate will not only slow the loan process, but will probably cost you in lack of expertise, best loan programs, and fees.
Marlon Baugh is a nationally-known mortgage expert. Since 2003, he has specialized in mortgage loans for people with Bankruptcies, Foreclosure or with other credit issues, as well as Commercial Mortgages. If you would like a Free Copy or to get instant access to the remainder of this Insider Commercial Mortgage Report, please visit http://www.specializedfinancialsolutions.com/commercial.htm or Call 954-678-5796
Source:www.isnare.com | |
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