Rental income: Typically, a business that buys commercial property occupies at least 51% of it. This is because lenders classify the real estate as an investment property when the ownership share is 50% or less — a factor that makes it harder to qualify for the loan.

Do you own or rent a business property?

Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author. A common dilemma that many business owners face is whether to own or rent a business property. The decision often involves some consideration of what, if any, tax benefits are involved.

Who is involved in leasing a commercial property?

Most commercial real estate leases are facilitated by brokers. There are typically two types of commercial real estate brokers involved: Listing agents are hired by a landlord to list their commercial property. Listing agents earn a commission that’s paid by the landlord, typically between 3% – 6% of the total lease.

What are the benefits of owning commercial real estate?

If you refinance or sell the property, your equity is the difference between the property’s fair market value and the remaining loan balance, and it helps build the overall value of your business. Appreciating asset: Owning commercial real estate allows you to benefit from capital appreciation — the increase in your property’s value over time.

Who is Martin Orefice and what is rent to own?

Martin Orefice is a real estate investor who has been in the industry for over a decade. He has experience with rent to own deals from all sides—as a buyer, seller and investor. He created RentToOwnLabs.com to provide the #1 resource where people can find information about all things rent to own.

Do you need a license to own a commercial property?

Professional help required. If you are a do-it-yourselfer, you better be licensed if you are going to handle the maintenance issues at a commercial property. The likelihood is you will not be prepared to handle maintenance issues yourself and you will need to hire someone to help with emergencies and repairs.