The Entrepreneur Forum | Financial Freedom | Starting a Business | Motivation | Money | Success

Welcome to the only entrepreneur forum dedicated to building life-changing wealth.

Build a Fastlane business. Earn real financial freedom. Join free.

Join over 80,000 entrepreneurs who have rejected the paradigm of mediocrity and said "NO!" to underpaid jobs, ascetic frugality, and suffocating savings rituals— learn how to build a Fastlane business that pays both freedom and lifestyle affluence.

Free registration at the forum removes this block.

Commercial property purchase for an IT Business

Andy777E

Contributor
Read Fastlane!
Read Unscripted!
User Power
Value/Post Ratio
42%
Dec 8, 2018
55
23
All,

After making some good success in IT Consulting business, I need to expand and need to hire some employees.
So basically I cannot operate from home now. I was thinking of leasing some office space. But I got an idea why not to purchase?

Need your input to analyze.To be specific I live in Northern VA and here company is registered as Foreign LLC(cos initially it was started in NH but I moved from there):

Reason for purchase rather than leasing:
1) Capital expenditure can get deprecation (possibly in 27.5 years).
2) I have enough cash in the business to buy the property 5 times bigger than I need. And rest space I can divide and rent it out. So it can not only reduce my taxes by capital expenditure but may also generate some cash flow

I understand:
1) There will be property tax (Expense)
2) Maintenance (Expense) and some headache

Questions:
If I have to sell let's say in 10 years from now how does it work?
If the property appreciates and profits -how does that work?
With still offices not properly opening- what are the chances that Office property prices will go up?

Appreciate your input!
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

Skroob

Entrepreneur // Mobile Application Developer
FASTLANE INSIDER
Speedway Pass
User Power
Value/Post Ratio
282%
Feb 18, 2022
229
645
Jacksonville, FL
Okay, I want to make sure you’re not getting ahead of yourself. Why do you feel like you need commercial office space? You’ve been working from home, why couldn’t your future employees?

If it’s just a real estate play, that’s understandable, but treat it as such.
 

Andy777E

Contributor
Read Fastlane!
Read Unscripted!
User Power
Value/Post Ratio
42%
Dec 8, 2018
55
23
Okay, I want to make sure you’re not getting ahead of yourself. Why do you feel like you need commercial office space? You’ve been working from home, why couldn’t your future employees?

If it’s just a real estate play, that’s understandable, but treat it as such.
There is a need due to expansion and some staff is needed on site.
 

KrystalW

PARKED
User Power
Value/Post Ratio
0% - New User
Mar 20, 2023
1
0
I suggest a versatile commercial real estate property, given the market climate. Location is everything in commercial real estate. You said you are looking for a place to be at for about 10 years, so ideally, you want a place that is upcoming, with lots of new construction happening, or about to happen for maximum profits. If you have been working from home, the construction that will be happening will not deter your business, so you can still work from there, and then in 10 years, everything is going to be built up around you, and thus increase the property value.
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.
Last edited:

Post New Topic

Please SEARCH before posting.
Please select the BEST category.

Post new topic

Guest post submissions offered HERE.

New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Ideas needing execution, more!

Join Fastlane Insiders.

Top