NOT REALIZING YOU CAN R U CAN RAISE THE RENT E THE RENTS OF CURRENT TENANTS TO OFFSET BUILDING COSTS This only applies if you are going to rent out any of your future space to another business. Of course, this has to be in accordance with their current leases, but it is possible in many cases with a change in owners, and understandable if you are upgrading a building after purchase and there are tenants. It’s worth looking into.
MIXING UP DIRECT COSTS WITH TOTAL COST OF OCCUPANCY
Adding up your loan payments, buildout costs, and other monthly costs will give you the direct cost of occupancy. When you add all of this up and find some spaces you like, you then compare these to find out what has the lowest cost. The more important total is usually different from this, though. This is the cost of total occupancy, something that includes other factors that will make a difference in your budget, employee morale, and other things. This includes anything that will go into any cost relating to the building. You can consider furniture costs, employee drive length and gas use, and any other underlying fees. This is the real number that will make a difference between the properties that you choose. It isn’t uncommon to see the lowest direct cost end up having the highest total value.
FAILING TO UNDERSTAND THE TERMS OF BALLOON FINANCING
This is a common type of loan financing that is offered in commercial real estate. A lot of business owners don’t fully understand the terms of the loan before getting approved and
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