Tips to Get Started in Corporate Real Estate Investment
Filed under: Corporate Real Estate
Are you a small business owner looking for ways to diversify your assets and improve monthly cash flow? One area that many business owners overlook is corporate real estate ownership. If you haven’t considered this option, then you should talk with a corporate real estate expert to learn more about how commercial real estate could be beneficial for your home.
Renting vs Owning Office Space
Most small businesses rent the office and showroom space that they are using, and renting is often a great way to get started with a new business. The problem with renting is that you aren’t building any equity, because the rent is paid each month and you will never see that money again.
Once you have established some success in your small business, then you should consider the benefits of office ownership instead. By owning the building where your business is located, your monthly payments will help you build equity in the property.
Cash Flow from Corporate Real Estate Investments
In fact, it is actually possible to create an income source by purchasing a building for your company. Many business owners buy an office building that has enough space for their own business, plus additional office units that can be rented out to other companies.
As a result, you can actually create a situation where you receive a positive cash flow on a monthly basis. The cost of the office space for your company will be covered by the payments from the other businesses, plus you might have some extra to build additional equity.
A corporate real estate purchase can be a big investment for some business owners, so it is necessary for you to talk with a professional to see if it’s a good decision for you. By taking a looking at the finances of your company, you can determine if you will qualify for the financing and if it will be a smart financial move to increase business assets.
John Grant is the owner of Project Management Solutions, and he can help you learn more about corporate real estate ownership. Contact him for more details: (951) 755-0615 or john@officeprojectmanagement.com.
