When buying commercial real estate, what should be my initial capital?
Question by Arthur S: When buying commercial real estate, what should be my initial capital?
I am the owner of a small company, New York Swim School. Until a month ago I was renting pool space from prominent health club in NYC. Due to the new ownership of the club I was unable to renew the contract, and was forced to stop doing business. My goal now is to own a health club in NYC or New Jersey where I will not be at mercy of others for the continued success of the business. I am new to buying or renting commercial real estate so I need some advice as to where to start, what my initial capital should be, if I need to loan the money how should I present it to the bank, and so forth? I would appreciate any kind of help or suggestions. Thank you in advance.
Best answer:
Answer by Ron
When you borrow money from a bank for a business reason, you need to write out a business plan, with full budgets, projected income, projected sales, projected expenses, etc. The best thing to do is go to the library and look into “Starting a business” and go straight to the Bank Loan part. Good luck
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Tags: Buying, capital, commercial, Estate, initial, Real, should
June 22nd, 2010 at 11:07 pm
First of all You should decide how big your real estate business should be.
Capital ReQuired– $100000-1000000
Should Buy in a fast developing place
June 22nd, 2010 at 11:53 pm
To buy commercial property you will need at last 30% down. Additionally the interest rates for commercial are significantly higher than residental.
June 23rd, 2010 at 12:47 am
In my resource box it has two articles about commercial realestate in NY and in New Jersey.
Hope it helps! Good luck!