Should I Buy or Lease my Business Location?

There is not a quick and easy answer to your question. There are many items to consider, here are a just a few -

• What typeof business do you own? (Some types of businesses may benefit from a 'work-at-home' structure) 

• Does your business cash flow offer a sufficient debt service coverage ratio to profitably handle the mortgage payment?

• Do you require a major interior improvement to satisfy your particular business needs. If so, are you willing to help increase the value of a property that you are only leasing, when you can buy your own?

• Have you had a Profit Enhancement Profile performed on your business operations?

• Do you have a qualified commercial real estate broker actively looking for you? In most cases, you should NOT use a residential broker(Contact me for a FREE report on what to look for in a commercial real estate broker)

• Will you need a capital outlay for equipment, up-fit, furniture, etc.. for your new business venture? (You may be able to leverage a commercial property to roll-in these costs)

• Have you found a building that would fit your business's financial goals? (Example: Try find a building that can be divided into more than one tenant space to help your current cash flow and allow for future growth, etc..

• Can you afford the "blood" (down payment) required in a purchase deal? (Unlike lending avenues such as a bank that require 20-30% down payment on the property, be aware of all your options. There are other programs that only require 10% of total project cost).

This is only a very short list of a few of questions to ask before deciding on whether to buy, lease or work out of your home  ( A future blog on home-based businesses will follow, soon!)

If you currently own a business or are thinking about starting a a business; purchasing a commercial building for your business may be a great wealth-building and cash-flow saving strategy.