Is getting a mortgage from the bank the best way to finance commercial property? Should you invest in a turnkey building or should you be looking at investing in a fixer-upper? How much will it really cost to buy an office building?
In this podcast episode, Alison Pidgeon speaks about her experience with buying an office building and the 5 lessons she learned.
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In This Podcast
- 5 lessons learned
1. There are lots of ways to finance commercial property
- Getting a mortgage from a bank.
- A loan from a private investor – this is called a promissory note.
- Assuming the mortgage – take the mortgage over from the owner of the building.
- Get a grant/loan for economic revitalization areas and or minority business owners.
- A loan from Small Business Administration.
2. There are many different strategies for investing
- Buy a turnkey property – you can just move in and there is not a lot that needs to be done to the building.
- Buy a property that needs significant renovations and you will greatly increase the value once it’s finished.
- You may also want your practice to be the only tenant or you can have other tenants cover the cost of the building.
- Even if a building is listed for rent, you can still check if they are willing to sell or you can lease to own.
3. It will always cost more than you think
- There may be delays but you will still need to pay taxes, mortgage and the electric bill, etc
- You may need to get architectural drawings done which costs about $10 000
- Unexpected expenses may come up such as new flooring etc.
4. Treat your building as a business
- Alison has her building registered as a separate LLC and recommends that you do the same, speak to your lawyer about this.
- Keep good records of the building to be able to see how much things cost and what you had done to the building in case you want to sell it in the future.
5. Ask the experts
- Hire professionals familiar with commercial real estate.
- Talk to different lenders and ask for recommendations about other people to talk to about different financing options
- Do your own research – read books (see below book recommendations) and listen to podcasts.
Books mentioned in this episode
- Whitney and Alison Talk about 1099’s vs. W2’s in Group Practice | GP 17
- Email Alison: email@example.com
- Free resources to help you start, grow and scale
- Work with us
- Consult With Alison
Meet Alison Pidgeon
Alison is a serial entrepreneur with four businesses, one of which is a 15 clinician group practice. She’s also a mom to three boys, wife, coffee drinker, and loves to travel. She started her practice in 2015 and, four years later, has two locations. With a specialization in women’s issues, the practices have made a positive impact on the community by offering different types of specialties not being offered anywhere else in the area.
Alison has been working with Practice of the Practice since 2016 and has helped over 70 therapist entrepreneurs start and grow their businesses, through mastermind groups and individual consulting.
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