Most people dream of having their own building for their business. It is often the case where the owner of the establishment dreams to one day, be able to purchase the building he is currently occupying. If you are renting your daycare center, you might share this same dream of owning the place yourself. Who would not want to own their own building? There are a lot of benefits that one can enjoy in owning their own building for their establishment.
Owning your own building can prevent you from worrying about meeting your monthly rent. Wouldn’t you want to just be able to pay your own place knowing that soon it will be yours rather than continuously give money to your landlord? Buying your own building can be rather difficult especially if the cost of the building is rather steep and you are just starting your business and have very little capital to actually buy the building. It would often be more advisable to rent out the place and use the money to purchase other equipment that would help make your business more profitable. Renting o course provides the comfort of not having to shell out a large cum of money in the onset of the business however the place is not yours and you would need to continuously pay rent.
Well your dream of owning the place you are renting may not be far off. You do have the option of buying the place you are already renting. If your business is already stable and you have enough savings, you can talk to the landowner about the possibility of buying the place from him. Most landowners are looking into new ways to cash in their investment. If you have been renting a long time, you may be surprise the eagerness of your landlord to sell you the place instead of him continuously maintaining the place. Usually a good agreement with the landlord will allow you to own the place at a reasonable price and reasonable payment terms.
You can have the option of actually asking the landlord if he would be open to the idea of leasing to own to the property. This structure can be both rewarding to the two parties. There are very little guidelines when talking about the initial cash out. It’s usually higher than 5% and getting your landlord to agree to 5% or less can be next to a miracle.
Another option if you really want to own the building is to apply for a mortgage. But be sure that you get the best price for the place first. You would want the appraisal to be higher that the purchase price. Mortgage companies would be able to help you with this and soon you can have the chance of owning your own daycare center.
Give it some thought. Weigh the benefits and consider all the factors involved in making the decision of owning or just renting your place. Think of all the pros and cons before you make any decision.
For more:
How to start a daycare center by OwnADaycare.com
