Many of our small business owners want to move from renting to owning. We think, if it is affordable, now might be the time to make that decision. Rental prices for commercially leased properties are moving up in many markets. Transforming from renting to owning allows you to control your bottom line. Your mortgage payments will remain relatively constant, depending on the terms.
Our client was renting his suburban Dallas office space. He was ready to make the move from renting to owning. However, he had never purchased commercial real estate. Our team, along with Business Associate Niraj Zaveri, worked closely with him to make the process as transparent and smooth as possible.
Is this the time to move from Renting to Owning?
• Lease payments vs. mortgage payments : We will help you compare what you currently pay in leases to what your potential mortgage payments might be. GRP Capital finds a variety of lenders and presents clients with several different options for financing. Clients can then compare all of the aspects of these term sheets before making a decision. We help crunch the numbers so you can determine what is best for you. We will also try to forecast what your future lease rates would be if you continue to rent. Will you have additional space to rent? If so, we will help you determine a reasonable market rate for that income.
• How Long will you be occupying the space?: Changing office locations can be disruptive to your core business. In addition, making plans to “flip” office space may not make sense in every situation. If you are planning to stay in the office for a while, you will realize greater financial stability. This gives time for the start up costs and any equity injection to be offset by lower payments.
• What do you have in Place to be an Owner? When you become the owner of your office space, you will have more responsibilities. These include taxes and insurance, but also maintenance and upkeep. Do you have the time to take on these additional responsibilities or have you created a team to take these on? Ownership should allow you to take control of your office space and your payments, without taking you away from running your business.
Niraj Zaveri on closing this loan stated, “I was thankful that my client could work with the experienced GRP Capital team. He was nervous as a first time commercial real estate owner, but we were able to guide him from receiving term sheets to closing and funding his loan.“
Our GRP Capital team specializes in finding the right lender for each project. We save our clients time and money, as we research the best choices for their funding sources. Our experience allows our clients to find funding that is project-appropriate and will allow for sufficient cash flow. If you are considering becoming a first-time (or second or third time!) buyer or refinancing a current loan, we can assist you.
- rent to own; purchasing office space; office loans ,