accepted. These types of mortgages are usually high-risk for lenders. They need the borrower to pay the full payment in one sum at the end of the loan’s term. In most cases, it is interest-free or the borrower only has to make interest payments up until that final payment. The mistake that I see is business owners not being prepared for the final payment and the end of the loan. Then they have to refinance, almost always at a higher rate. Make sure you know the full structure and prepare for it.
BUYING TOO SMALL OF A PROPERTY
This is much worse than buying too much space. I’ve already covered ways to offset the costs of extra space throughout this book. If you fail to get enough space and outgrow your property, you have fewer options to solve the problem. When that happens, selling the property and moving somewhere else is sometimes almost the only option. The business owner looks back and regrets not getting more space originally. It cost the company down the line. If your company has the ability to do so, get space that outsizes your current staff. Subleasing is a great option, then when you need it, you can grow into it. It could pay off big later.
UNDERESTIMATING THE LOAN PROCESS
As I keep mentioning, starting early is a must. This is one of the more common mistakes that is made. Business owners think getting approved for a loan will be quick and easy. They are almost always wrong. Often, they think the lending process is similar to getting a mortgage for a residential home. That’s not true. A mortgage only considers a few aspects.
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