The Times Are Changing
Commercial Real Estate Financing The Times Are Changing
Author: Valerie Mellema
Date posted: 04.09.24

Not every business is going to be successful forever. It’s a sad but true reality of life. Sometimes, you want to make a change and go in a new direction – which is precisely what this case study is about. One owner realized that his passion for his business was waning, and the wares he was offering were no longer as in demand as they once were. The world is no longer obsessed with cameras, and the owner was no longer interested in changing that.

What Started the Change

With experience in business, this owner wanted to take things slow and steady until retirement. However, as cameras became less prominent for most people, his company struggled. At the same time, he’d always wanted to try something else. Namely, he’d imagined for years what it might be like to rent out properties for all the new families in this Midwestern city.

 

Before he made the leap, he made sure he understood what he would be getting into – and that he was getting out of something without regrets. Then, after talking to other business owners in the area and looking at information on renters in the city, he knew what the next step would be.

The Times Are Changing

Getting Started as a Property Owner

The owner knew that he would require money for properties if he intended to rent them. So, he researched average prices and carefully assessed the amount of work he was willing to invest in the new company. In the end, he realized that he would need $1,000,000 for three homes, which he could then rent out, providing him with more time to spend on his hobbies and with his family.

 

Choosing the Right Form of Financing

It was evident from the start that a commercial real estate loan could be the answer. He had excellent credit, significant equity in his own home and a solid business plan. He thought he’d be a good candidate for this type of financing. It turned out that his initial instincts were right, and commercial real estate financing met his needs perfectly.

Reasons to Select a Commercial Real Estate Loan

He confidently made an excellent choice with this real estate loan. The 30-year payment terms proved beneficial. He could rent out the properties to young families and professionals in the area, making money in the meantime. After carefully considering other options, it seemed to be a good fit for his needs.

What Happened After?

The owner secured the loan and enthusiastically engaged in choosing properties, fixing them up, and putting them out as rentals. He now earns more money than he did with his previous business and has time to kick up his feet and enjoy life. Although he didn’t expect his life to go this way, he loves every minute of it now.

The Times Are Changing
About The Author | Valerie Mellema

Valerie has over 16 years of experience as a professional writer of blogs, eBooks, articles and press releases, with a focus on finance and alternative lending. Valerie resides with her family in Texas and is passionate about her horses.

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