If you had the choice, would you lease or purchase property?

[AJPRATT]

I have the opportunity two choose between two great locations. Both are on the same busy street, caddy corner to a hospital and college, just on different sides of the college. The space I could lease is not built yet, it will be a pad site at a shopping center and will have a drive thru. It would be about $3000/mo rent + extras. (That's the part that scred my lawyer.)

The other is a business that was a coffee shop with an addition going up. I know the sellers and they got into the addition and one brother cam down with cancer and they have decided to sell. They are asking $350K, but I know they would work with us on the price.

I would love to hear what your thoughts are as I am having a tough time making this decision.

 

[John P]

Based on the numbers, and assuming the viability of the purchase location in as good or better than the other, it is a no-brainer.

Negotiate for at least 10% less, or $315K (shoot for 300, but this will do.)

In many cases you only need 10% down on commercial investments, which we will round to $32,000. This will leave a balance of $283K to finance. At 8%, this comes to be $2077 per month, a bit less if you start with interest only, or you have a larger down. Even though it will be a bit more in the beginning, you now have a property which can only increase in value and are given many more financially beneficial options in the future.

 

[AJPRATT]

John: Thanks for your feedback! I am really torn between these. For the last six months, it seemed every location I saw was all wrong and now there are two that would be great.

 

[ElPugDiablo]

Re: If you had the choice, would you lease or purchase prope

The other is a business that was a coffee shop with an addition going up. I know the sellers and they got into the addition and one brother cam down with cancer and they have decided to sell. They are asking $350K, but I know they would work with us on the price.

Is the business? Or is this business and property?

 

[AJPRATT]

Its everything.