Real Estate Information |
|
Why Commercial Real Estate is the Hottest Retirement Asset
For small business owners, commercial real estate investment is the hottest new retirement asset. If your mind has already jumped to "REITs" - or shares in Real Estate Investment Trusts - think again. I'm referring to the ownership of the commercial facilities small business owners currently lease, or new commercial facilities they can buy or develop. Small business owners can thank the U.S. Small Business Administration for this rather substantial opportunity. The SBA sponsors a specialty lending program designed to assist successful small business owners who want to acquire or develop their own facilities. The SBA did not design the program as a vehicle for creating superior retirement assets, but it doesn't take a financial genius to connect the dots - and the business owners who have done so already are profiting enormously from their decision. It's called the SBA 504 program and it's been around, though not well promoted, for nearly twenty years. If a banker failed to mention it as an alternative, don't be too dismayed. Traditional lending institutions prefer conventional financial instruments because they offer traditional lending institutions greater profit margins. The SBA 504 program is clearly intended to benefit small business owners, not necessarily the financial community. Here's what SBA 504 loans offer qualified small business owners: below market fixed interest rates, longer terms and with a cash investment as low as 10 percent of the total project cost. Typically, small business owners can reduce real estate expenses by up to 40 percent while building an asset that benefits them long after they've sold or shuttered their business. As an investment, this type of financing offers the highest cash-on-cash return available for commercial real estate, which means not only does their capital work harder for them, but they keep more of it to grow their business too. You can't find a traditional lending product that can beat this. Next to home ownership, being your own boss is the number one American Dream. That's why most small business owners started (or acquired) their own business. And their success is almost entirely dependent on their drive, ambition, innovation and attention to detail. Eventually, however, they'll sell their business or pass it along to their children or shut it down (very few small businesses go public). With SBA 504 financing, they can turn that drive and ambition into another long-term asset that offers immediate and significant tax advantages, as well as makes great sense for long-term financial planning. It's important to take an innovative approach to commercial real estate ownership. For most clients, it is beneficial to establish a separate real estate holding company to own the real estate asset - it separates their operating company - the one they may eventually sell or pass on to their children - from this new and important real estate asset. The result is that, in 10 years or 25, when a small business owner sells their business or gift it to their children or shutters it, the real estate asset will retain important appreciated value in a separate holding company. They will also have been paying themselves rent instead of some faceless landlord, effectively growing their real estate asset, building their equity and benefiting from the tax advantages all at the same time. And once they sell their business, they'll still have an income-generating asset that is one of the soundest long-term investments anyone can make. Small business owners can continue to be landlords in their retirement, or they can sell the asset - typically at a rather significantly appreciated value. Even if they gift the business to their children, the new owners will have to continue paying rent. Who would make a better landlord their children than themselves? The value of the SBA 504 lending program is clear. Most business owners that are educated about this financial planning strategy adopt it. For successful small business owners, this is almost a no-brainer. If they haven't already done so, it's time to stop paying rent to someone else and consider owning for all the right reasons. * * * By Christopher Hurn (Ed. Note? Hurn is president and chief executive officer at Mercantile Commercial Capital based in Altamonte Springs. His company handles commercial loans and specializes in 90% financing for small business owners who want to acquire or develop their own facilities. The company, in business for 19 months, has closed some $30 million in loans already and opened offices in Miami, Tampa and Chicago.)
MORE RESOURCES: Real-estate agent explains new fees to homebuyers, he's not worried Business Insider Dr. Phil left speechless after real estate agent claims that squatting is justified by colonization New York Post Real Estate Listings Are Going Green: 5 Eco-Friendly Sales Features on the Rise Right Now Realtor.com News Inside Bill Gates' real estate, from his Seattle to Florida houses Business Insider Low inventory forces D.C.-area buyers to get creative, consider condos The Washington Post Banks Believe They Are Well-Prepared for Commercial Real Estate Fallout The Wall Street Journal The economy might be booming, but housing is in a recession: Top real estate CEO says he's never seen anything like ... Yahoo Finance Inside Chris Pratt and Katherine Schwarzenegger's Real Estate Portfolio Architectural Digest Google's Strategic Job Cuts Reflect Ongoing Cost-Cutting Measures, Affecting Real Estate and Finance Departments Yahoo Finance Local man allegedly poses as real estate agent in '20, steals over $7K | Hot Springs Sentinel Record Hot Springs Sentinel Real Estate Sales Include Two Falconer Commercial Properties Jamestown Post Journal Hot Tips for Home Buyers and Sellers Right Now Kiplinger's Personal Finance Westmoreland County Real Estate Transfers | Real Estate | latrobebulletinnews.com latrobebulletinnews.com Real estate expert says several factors impact farmland prices brownfieldagnews.com OT Real Estate Spotlight of the Week: 4218 Edgewood Court The Owensboro Times The Michael Houck Real Estate Guide for April 20 and 21 Oil City News 10 Real Estate Charts Showing What's Next for Housing: Ivy Zelman Business Insider The HYM Investment Group, Cathexis and National Real Estate Advisors Announce Pre-Leasing at Amaya Boston Real Estate Times Big Tech Is Downsizing Workspace in Another Blow to Office Real Estate The Wall Street Journal Real-Estate Agents, Investment Advisers Chafe at New Anti-Money-Laundering Rules The Wall Street Journal LOCAL REAL ESTATE TODAY 4.19.24 – KQEN News Radio kqennewsradio.com Massachusetts real estate transactions for Hampden, Hampshire and Franklin counties April 21, 2024 edition MassLive.com Co-op Assessments: Do You Have to Pay What They Say? The New York Times A repurposed mill, church, and a library: 3 nontraditional homes for sale in Baltimore The Baltimore Banner East Bank Master Developer Agreement with The Fallon Company Approved Boston Real Estate Times Prologis Warns of Slowing Industrial Real-Estate Market The Wall Street Journal EG Real Estate: Busy Spring Market – East Greenwich News East Greenwich News Nisa Investment Advisors LLC Grows Position in Chicago Atlantic Real Estate Finance, Inc. (NASDAQ:REFI) Defense World S.F. housing market: Still very few homes, selling even faster San Francisco Chronicle How environmental insurance diligence can shape commercial real estate transactions Insurance Business Nuveen Real Estate Income Fund (NYSE:JRS) Stock Crosses Below Fifty Day Moving Average of $7.63 Defense World Critical Survey: Wheeler Real Estate Investment Trust (NASDAQ:WHLR) and Cousins Properties (NYSE:CUZ) Defense World Cerity Partners LLC Purchases New Shares in Alexandria Real Estate Equities, Inc. (NYSE:ARE) Defense World Top 25 Columbus Residential Real Estate Deals for January 2024 Columbus Monthly Healey-Driscoll Administration Names Alison Brizius New Coastal Zone Management Director Boston Real Estate Times Nisa Investment Advisors LLC Sells 32123 Shares of Ares Commercial Real Estate Co. (NYSE:ACRE) Defense World An investigation into the University's controversial real estate holdings Johns Hopkins News-Letter How low inventory is affecting home sales in Peoria and the rest of Illinois Peoria Journal Star 21 Largest Real Estate Companies in the World Yahoo Finance Q1 2026 EPS Estimates for Alexandria Real Estate Equities, Inc. (NYSE:ARE) Decreased by Zacks Research Defense World How Real Estate Helped Taylor Swift Become A Billionaire Yahoo Finance Darien and Rowayton Real Estate Report: April 11 to 18 darienite.com TikTok’s Origin Story: Court Files Show Role of GOP Megadonor Jeff Yass The New York Times Ohio Department of Commerce Division of Real Estate and Professional Licensing offers tips – Daily Chief-Union Dailychiefunion China home prices slumped in March as property crisis drags on Business Insider Robert Bailey on Real Estate TPG Online Daily Dream Industrial Real Estate Invest Trst (TSE:DIR.UN) Stock Price Passes Below 200-Day Moving Average of $13.02 Defense World Downtime: Pairing wine and real estate RichmondBizSense Robin Hunden of Hunden Partners honored with Jeffrey D. Fisher Real Estate Legacy Award from Indiana University's ... Daily Herald Blackstone Earnings Rise as Investment Giant Projects Commercial Real Estate Recovery - CoStar Group Real estate mogul concerned how Americans will deal with squatters: ‘Something really bad is going to happen’ Fox Business Fannie Mae, Freddie Mac clarify real estate commission rules National Mortgage News Real Estate Broker Commission Settlement ClassAction.org Former HGTV star from Los Gatos sentenced in $10M real estate fraud case CBS San Francisco See the latest Coles County real estate transactions Journal Gazette / Times-Courier Two Weichert real estate agents in Willmar recognized for work in 2023 West Central Tribune A new real estate trend? Shopping malls converted into residential units in South Florida NBC 6 South Florida |
RELATED ARTICLES
Refinancing Your Home Loan? When Should You Refinance Your Home? If you have a current mortgage and are unhappy with the interest rate or the amount of the monthly payments, it is possible to refinance your home and eliminate your problems. But before you call your lender, there are some questions that you should ask yourself in order to determine whether or not it's the right time for refinancing your mortgage loan. How To Best Negotiate A House Deal Whether it's selling your home or buying a home, more often than not you'll come across a stage where you'd have to negotiate. Negotiation is the art of getting what you want at your terms and conditions. When is the Best Time to Move? As Realtors, we are often asked, "When is the best season to move?" This is a tough question, one we cannot answer for you. Most people are asking about price, do they fluctuate throughout the year? NO. Real Estate: Reasons and Priorities for Purchasing Property Real Estate: Reasons and Priorities for Purchasing Property. It's not just about Real Estate as an Investment. How Much is that House in the Window? With the recent release from the UK's biggest mortgage lender, the Halifax, of its latest house price report for May 2005, showing that prices fell by 0.6% last month, and prices falling just 0. How to Make a Home for Sale Flyer Using Marketing Psychology Want to sell your home right away, for the highest profit to you? Discover how to improve on the Realtor's number two sales tool--right after the sign--your sales flyer.Most real estate agents use a sales flyer template which showcases their listings using out-of-date marketing strategies. Estate Agents on the Costa Blanca Spain Properties for sale or to rent on the Costa BlancaAs a general rule of thumb, newly built properties on the Costa Blanca are generally cheaper than existing or re-sale properties - cheaper still if you buy 'off plan' (before the house has been started). Property prices have rocketed here over the last five - ten years and many fortunate people have found that their properties have grown in value enormously even before they had moved in! Even though the market is now leveling out, a property in Spain is still an extremely good investment. San Diego Real Estate, Million Dollar Homes San Diego county has always been known for its Luxury Homes, yet in 2004 San Diego County luxury home sales (homes over $1,000,000) hit an incredible 2774 total units, an increase of almost 170% over total sales in 2003!In the entire State of California, A total of 33,107 homes sold for a million dollars or more last year. That was up 73. So, You Wanna Buy Pre-Foreclosures? So you wanna buy pre-foreclosures? or at the courthouse steps? So many people ask us about this. Here's our '30 second seminar' on it. The Psyche of The Seller and The Tenant Buyer For those of you who were not psychology majors the "psyche" is someone's mind. What motivates them. Property Investing Secrets 5 Property Investing Secrets:How To Work With Agents And Get What You WantWhen you're property investing, it is important to know how to connect with real estate agents. Here are some techniques you can use when you are out there pressing the flesh. Want To Be Profitable In This Real Estate Bubble? I'll Show You How In Just Three Easy Steps STEP#1. First you have to recognize that in order to make money in almost any market (i. Using Color Psychology to Sell Your Home When painting your home for resale, choosing the right colors can make a huge difference in your paycheck at closing. For instance, did you know that the exterior color of houses selling most quickly is a certain shade of yellow, but that choosing the wrong shade of yellow can kill a sale?You'll find many brochures in paint stores, showing various combinations of exterior paint colors. Listing Real Estate Online - Top Tactics for Boosting Sales Listing real estate online can be a great way to let buyers know what is out there and it gives sellers a chance to show their home to people all over the world. However, the problem lies in the fact that most people still want to tour the home, inside and out, before buying it. Panama is Hot - A World Class Retirement Haven Thats Ripe For Profitable Real Estate Investment If you've followed any of the major survey agencies around the world that rate places for retirement, Panama has been on top of the list in many, and for a few years running. So, if you're looking for a place outside U. How to Create Cash Flow Out of Thin Air! Want to see a trick every real estate investor will love?From the Desk of Thomas KishCrazy as it may sound.. Real Estate Investing with No Cash and No Credit Lots of folks think it can't be done.How in the world can you buy a piece of real estate property without cash or credit? How is it possible to buy a $50,000 house or a $1 million dollar house if I don't have an abundance of cash or an excellent credit rating?Nothing stops a would-be investor cold in his tracks like "no cash or credit. Russ Whitney and Real Estate Investing Gurus There is curently a huge real Estate boom in America today. Little does the world know that this boom has some to do with all of the real estate guru's out there. From Foreclosure to Forbearance - The Art of Negotiation As an active real estate investor you probably already know that the most important phase of your investment is when you buy the property. Most of us are getting the bargains in the foreclosure market. What Makes Fractional Shares Different from Owning Other Kinds of Vacation Properties? Fractional shares ("fractionals") are sometimes confused with other vacation property options, such as time shares and condo hotels. While there are similarities, there are a number of things that make fractional shares unique, and thus suited for a certain type of vacation property buyer. |
home | site map |
© 2006 TIGER MEDIA |