Here are 3 reasons why we believe NOW is the best time since the Savings and Loan Crisis, in the late 80’s, to purchase commercial real estate for your small business.
1. Commercial property values have dipped nationwide. As the economy continues to improve, property values will go back up. Historically this has been the case i.e. that the increase in property value is rapid after a down cycle. Many entrepreneurs will be kicking themselves that they did not take advantage of this opportunity.
2. 90% financing is very much available, mostly via SBA loans, at historically low rates, on purchase transactions. Mid 5%’s and even rates in the 4%’s are available for business owners purchasing commercial real estate…
3. You can roll in rehab/construction cost into purchase loans. So you can purchase properties that needs repairs, renovate them for your business saving yourself even more capital and building long term equity.
If you have been considering purchasing commercial real estate for your business, do not wait. This is a once in a life time opportunity. The market and economy will stabilize. Commercial real estate recovery has always trailed the general economy by 3 to 6 months and values will come back up.
By Jeff Rauth. Email Here or 248 885-8797. SBA Loan Officer at a Bank That Lends Nationally. 15 Years Commercial Real Estate Experience. Past Commercial Mortgage Broker.