Financial independence only comes through positive cash flow and ownership. By owning your own business space you can lower your monthly payment, keep your money working for your company, and build an asset for your retirement (not your landlord's).
Worried about coming up with your down payment? We are now offering cash back at closing that will qualify as your down payment ... which means you will have no out of pocket down payment costs up front.
You will be able to lock in long term money at a fixed rate - we will be laughing about that when rates go up.
Consider Aurora Corporate Center:
-Pre-construction pricing on our beautiful new building
-Down payment program
-New incentives from the City of Aurora
10 Gigabit fiber optic network coming soon!
More reasons to buy your business space:
1. Exit Strategy - A solid retirement strategy should include a diverse portfolio - why not include the space you need for your business as part of that strategy? When you are ready to retire, owning your commercial real estate provides you with an asset to sell, lease out, or pass down to your children.
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| Passing an asset to a younger generation |
2. Portfolio Diversification - Real Estate has a low correlation with other major asset classes and provides a hedge against inflation. Expanding into investment classes other than stocks, bonds and cash "typically improves the risk-return characteristics of a strategic asset allocation," according to Ibbotson Associates.
3. Appreciation - According to data from the National Council of Real Estate Investment Fiduciaries (NCREIF), private market commercial real estate returned an average of 8.4% over the 10-year period from 2000 to 2010. Historically, commercial real estate increases in value over time and is a good vehicle for investment returns. Be aware that when property sells, a capital gains tax is assessed on the appreciation that has occurred since the property was purchased. However, your long term gains are taxed at a rate that is likely lower than your personal income tax rate. The tax on gains can be deferred by using a 1031 Tax Deferred Exchange transfer to another asset. Please speak with your tax advisor about how to utilize appreciation and depreciation.
4. Depreciation - Yes, you get to depreciate an appreciating asset. Through write-offs and depreciation, an owner can reduce taxable income or capital gains. You can depreciate commercial property over 39 years. The IRS allows you a deduction for depreciation whether or not your commercial real estate is profitable. There can be pitfalls when it is time to sell, so please check with your tax professional for advice.
5. Principal Reduction - Assuming you have used some amount of debt to purchase the property, principal reduction means that either your tenant or your business makes your mortgage payments for you. The rent they pay reduces the principal that you owe on the property, essentially building equity and increasing your net worth on a monthly basis. And if you are occupying the space you
self, who better to pay rent to than yourself? Money received as rent is FICA tax-free!
Pay yourself....not your landlord!
6. Cash Flow - Your business can pay you rent. By setting up a real estate holding company (Limited Liability Corporation) to own your new property, you will form a master lease between the holding company and your company. You are effectively paying yourself rent. If you later decide to sell your business, you can keep the real estate company from which you can continue cashing rent checks. If you have additional space that you can lease out to a tenant, you will collect a stream of cash from rent. Any amount over what is needed for the debt service is available for other ventures, repairs, or income. If you decide to occupy your space with your own business, you will still increase your available cash because the monthly payment to own is almost always less than rent.
Keep your capital on YOUR balance sheet. We have customers who have benefited from all of these strategies. We can help you determine if now is the time to own your business space, and help you navigate the steps. Come join the many successful entrepreneurs that call a Burgess property "home"!
Sincerely,
Tom Burgess
Burgess Commercial Real Estate
(630) 585-0021 or toll free 877-57-BURGESS (877-572-8743)
1585 Beverly Court #122
Aurora, IL 60502
We've got your down payment covered! 
Now offering pre-construction pricing on t
