![]() | |
![]() | |
![]() |
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: A Potential Mamdani Mayorship Strikes Fear in the Real Estate Industry The New York Times There’s one elite group propping up the Manhattan real estate market right now — everyone else is sitting on their hands New York Post Triangle homes sitting on the market longer, why a real estate agent says it’s about perspective WRAL.com Wellness Real Estate Set to Top $1 Trillion | Florida Realtors 4 real estate investors shared with us an overlooked advantage to buying property - Business Insider Detroit sues blockchain real estate firm that owns rentals with hundreds of violations Detroit Free Press Detroit sues cryptocurrency-based real estate firm to correct hundreds of property violations The Detroit News Senate Passes Tax Bill With Major Wins for Real Estate National Association of REALTORS® Shlichus Isn’t Real Estate Anash.org Detroit Evening Report: Detroit suing blockchain-based real estate firm for neglecting hundreds of properties WDET 101.9 FM Inked: Long Island commercial real estate deals roundup Long Island Business News Opinion: Anticipated tax changes impacting real estate industry Springfield Business Journal LOCAL REAL ESTATE TODAY 7.3.25 KQEN News Radio George Pierson, Realtor, Home 1st Real Estate JTV Jackson CEO Roundtable: Residential Real Estate Springfield Business Journal Real estate market still good for sellers Addison Independent Would lower interest rates help NH’s real estate market? NH Business Review ‘Unfiltered’: Social media that pays — and the channels to skip Real Estate News by RealEstateNews.com 'Keep it moving': HGTV cancels TV show hosted by Georgia couple after 4 seasons Savannah Morning News Real estate secondaries has plenty of room to grow, but pricing can be a challenge Secondaries Investor Real estate firm acquires Cecil residential properties for $14.6M Maryland Daily Record Dawson County weekly real estate transactions, July 3 Central Nebraska Today Chicago Teachers seeking MWDBE private real estate managers Pensions & Investments Real Estate Transactions: July 4, 2025 Greenfield Recorder REAL ESTATE | Harley-Davidson in West Bend, WI sold Washington County Insider Three reasons why there’s value in owning real estate as part of your collision business Repairer Driven News 7 Morning Digest: Detroit sues crypto real estate company, community ice cream truck & more WXYZ Channel 7 Compass ‘has not and will not adhere’ to Clear Cooperation Real Estate News by RealEstateNews.com News of public record: Muskingum County real estate transfers Zanesville Times Recorder Real Estate Minute – 07-03-2025 Texomashomepage.com Texas Teachers assigns $950 million to real estate, private equity Pensions & Investments Texas Senate Bill 17 Restricts Foreign Ownership of Real Property in the State The National Law Review Zillow ban lawsuit shakes real estate: What sellers need to know Fingerlakes1.com Real Estate Transfers: July 3, 2025 The Suffolk Times GPIF is shifting from the predictable to the tactical in real estate Private Equity Real Estate | PERE It turns out some real estate people like Zohran Mamdani The Real Deal Is Your Money Safe in the Bank in 2025? Norada Real Estate Investments Hyatt Announces Agreement to Sell Playa’s Owned Real Estate Portfolio to Tortuga for $2.0 Billion Hyatt Newsroom Homes for Sale in New York and Connecticut The New York Times The dreaded Zillow ban is finally here. Here's what you can do Business Insider Was operator of San Antonio apartment complexes running a Ponzi scheme? San Antonio Express-News More than 350 Quintana Roo real estate agents certified to provide buyers with verified ownership in real time Riviera Maya News Top residential real estate sales for June 16-20 in Sarasota, Siesta Key, Palmer Ranch, Osprey, Nokomis Your Observer Homes for Sale in Manhattan and the Bronx The New York Times Where Does Bruno Mars Live? Examining the Singer’s Real Estate Portfolio Architectural Digest ARTIS REAL ESTATE INVESTMENT TRUST ANNOUNCES TIMING OF RELEASE OF Q2-25 RESULTS AND CONFERENCE CALL Yahoo ALTA Applauds Congress for Passing Tax Package Preserving Key Real Estate and Housing Provisions StreetInsider Zohran Mamdani’s Ideas on Commercial Real Estate Come Into Focus Commercial Observer |
![]() |
![]() |
![]() |
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 |