At Community Business Finance we understand that no two businesses are exactly alike. However, it may surprise you to learn that sometimes two unique companies can achieve different business goals with the same solution. We recently helped two clients realize their individual dreams through property ownership.
When building a business, it is always a good idea to look ahead to the future and make long-term goals. Our client, an insurance company, wanted to establish roots in the neighborhood and build relationships with the community members living there. She knew that leasing office space was risky for that goal and left too much control in the hands of the landlord. Owning her own office building allowed her business the permanence she needed to integrate into the community and also gave her the benefit of building equity in her business. Additionally, the interest on the mortgage loan is tax deductible and she can take annual depreciation deductions on property taxes.
Our second client, a law firm, was hesitant to renew their office lease because the rent was increasing. While they could have searched for a new space to lease, the benefits of property ownership made more sense. With a long-term fixed-rate mortgage, they could anticipate their monthly expenditures and stop worrying about annual rent increases. They also avoided the costs of repeated moves in the future due to rent increases or expiring contracts. In this case, our client's mortgage payment was actually less than the current lease payment, allowing them to use their cash savings for different business needs.
Before signing a lease on an office space, consider the advantages of property ownership. It can have a significant impact on your business. Property ownership offers control, consistency, and financial advantages that leasing cannot provide.
Community Business Finance would love to help your business realize its dream through property ownership with a 504 loan.
To Get Started fill out a short online form and a loan expert will contact you.
You can also contact our offices:
In Texas call Bill Ebersole at 713-457-1650, ext. 201, or email him at email@example.com.
In Louisiana, call Jeanne Bergeron at 1-800-462-1017 or email her at firstname.lastname@example.org.