You can use capital tied up in your business to buy real estate assets, which can help your company grow faster while also building your asset base.

Business owners often ask me where they will get the funds not realising how much potential investment funding is tied up in buildings, land, equipment, machinery, specialised technologies, the list goes and includes anything with resale value on the books. 

Consider this, if you own vehicles they are depreciating assets. Instead of owning them outright, why not finance them and use some of that capital to buy appreciating assets like property?

We’re all trying to grow our businesses and assets. Here are some examples of how my clients have leveraged their business capital to invest in real estate.

• A retail business owner expanded their inventory by purchasing another retail location. They used their current stock to fund the purchase and doubled the size of their operations. The extra location also became a real estate asset for them as both a retailer and landlord. 

• An e-commerce business brought its logistics and warehouse activities in-house by acquiring a warehouse. They redirected the money previously spent on third-party logistics towards owning a property instead. This allowed them to improve performance through synergies while growing as a business.

• A residential real estate agent chose to expand into owning apartment blocks. Since they already had property management capabilities, they easily integrated the new buildings into their existing services. This enabled them to generate income from sales, and commissions and to prepare the assets for future redevelopment opportunities.  

There are many additional benefits, you can unlock opportunities through sales and turnover simply because many banks recognise those earnings and can leverage you from an operator into a property owner. 

The Value of Working with Experts

To unlock this investment potential you’ll need a skilled team to back you up. Though some people have invested by themselves and it paid off - it’s often because of the favourable market conditions and they invested in a single property.

This meant it did not require much skill, just taking risks that thankfully paid off.  

But professionals can add extreme value by sharing their knowledge, doing thorough research, identifying opportunities, reporting, and devising data-driven strategies.

It’s one thing to want to leverage but good real estate decisions require expertise to optimise.  

If your goal is building a portfolio, experts allow custom plans to achieve specific property targets. Going it alone might work to buy one, but if you want to scale you need a team to back you up and to assemble a high-quality portfolio.  

Besides that, you will get access to knowledge others paid a lot of money for and you’ll learn as you collaborate. 

It becomes a masterclass in real estate investing!

Not All Real Estate is Created Equal

If you are going to invest you want A-grade real estate delivering real performance gains.

The right people can help you to avoid the pitfalls - there’s great property, poor property and average property out there. And you don't want to entrust your business funds to someone who just wants to make sales without considering quality or fit.  Bad assets can be extremely difficult to unwind. 

Let Your Money Work for You 

Money is meant to be used, not to sit idle. With inflation, generally over time real estate outweighs simple cash savings. 

You'll notice prices rising steadily over time, which means your hard-earned money loses its worth. Instead, why not let your capital work for you and avoid losing ground to inflation?

It's much better to invest in real estate that appreciates in value than holding onto devaluing dollars.

If you're ready to maximise your business capital through real estate, we're here to help. 

Invest in strategic real estate assets that deliver results. 

Contact us - let's make it happen!

‍

⬇️ Watch the full video here ⬇️