Many hard-nosed small business owners who would never
consider renting, rather than owning their homes, seldom – if ever – consider
owning their own buildings. Why is that?
As a banker, in the course of your career you have the opportunity to review
countless business plans and financial statements provided by small business
owners seeking credit. If you are fortunate, you also get the opportunity to
assist many of those same business owners with their personal financial
needs.
In my experience, most owners of small businesses seem to reject the notion
of owning their own building, out of hand. For example, owners of the types
of businesses that traditionally lease space within an office building
rarely think about purchasing an office condo instead. Those in the business
of distribution, research or light manufacturing also seem content to write
rent checks ad infinitum to office park owners.
Not only are they passing up an opportunity to rent from a friendlier
landlord – themselves – they also miss out on an opportunity to own an
equity-building asset and substantial income stream that can come in handy
when they sell their business.
.
