Brooklyn's Progress
October/November 2006

BY HERU NEKHET, PRESIDENT, INSIDERS GROUP, INC.

Business owners have an opportunity to thrive as we approach what some believe may be the imminent real estate bust where desperate commercial property owners scramble to sell quickly or find a good long-term tenant to ride out the poor market.  With property sales steadily declining, and interest rates rising, property owners are ripe for making a deal in which the savvy business owner can negotiate favorable terms on a lease with an option to buy or a traditional long-term lease.

Now is the perfect time to purchase a property using a lease with an option to buy.  A two- to five-year lease with a purchase option provides flexibility to the business owner should they decide not to remain at that location.  In addition, the business owner has the ability to purchase a property in two to five years at today’s prices while contributing towards the down payment over time (down payment on a commercial property is usually 15% to 20% of the purchase price).

Traditional long-term leases can be negotiated at slightly below the current market rate for a longer than normal duration.  A ten-year lease may be agreed to with favorable terms since property owners want to secure steady cash flow as they prepare for the upcoming period of reduced activity in real estate.
 
As the real estate bubble bursts on landlords, it opens a door of opportunity for business owners seeking to save money, and find a long-term place to call home.

Insiders Group, Inc., along with its sister companies Insiders Group Real Estate, LLC and Insiders Group Business Development, LLC, provide products, courses, coaching and consulting designed to hand-hold participants through the process of discovery and eventual mastery of wealth creation through real estate investing, business development and investing in securities.  For more information, call 718-622-2260, send an email to insidersecrets@mindspring.com or visit http://www.insidershomebuyer.com/.