Purchasing a building for office and warehouse use is a good move. By combining your executive and shipping departments under one roof you save on overhead and you'll always have the option of renting office and/or warehouse space out to a third party if you need an additional income. An existing structure that contains office and warehouse space is also typically zoned to do just about anything, a plus if you plan on diversifying your business at some point. Keeping all of this in mind, stop for a moment and make a list of all the possible uses you will have for this building.

 

Once the list is complete, write a business plan for the project you had intended on using the building for. Then write a second plan for a back-up business. Banks and mortgage lenders have gotten stricter with their approval standards in recent years, so a back-up plan is a good idea. Use the worst case scenario and be prepared to tell the bank how you will pay them back if your projections for the business are wrong. Not everyone has huge cash reserves and other property for security. Even if you do, you'll still want to have a contingency plan. Liquidating existing assets is going backwards.

 

Have the building inspected to make sure everything is up to code and do a market analysis of the industry you're investing in. Warehouse and office space is fairly flexible in its uses, but you most likely have a specific venture in mind if you're planning on buying a building. If that venture is simply commercial property management, is there a demand for that kind of space or are there a lot of local vacancies? Don't make the mistake of thinking you can turn around what has been a long term problem by just your own efforts. Make sure you examine vacancy rates, average rent and lease amounts for the area, and potential tenants. Getting a few guarantees from them up front could make getting a loan easier.

 

We'll shop your request around for you. Simply fill out the iBank application form and we'll submit it to the banks and lenders who can help you. Wait a while before you make a final decision because you should receive multiple offers, possibly even from private parties and investment firms. You're not obligated to accept any of them. We are offering you a tool to help you weigh one lending option against many. Choose the one that's best for you and you'll be off and running.