How can mortgage planning be critical for business owners?
You may ask your CPA and financial planner for advice as a business owner. However, with an expert mortgage broker, you may avoid roadblocks regarding financial planning around your business. It would help if you structured your business plan to maximize profit in a way that allows future loan approval.
We work with business owners and their advisors to help them finance their property in ways that maximize their business cash flow and profit.
Figuring out your business plan will always include capital requirements, property rent vs. own, and business tax advice. These are all areas in which an expert mortgage broker is essential to your business and personal financial plan, since all of these areas are impacted in some way by your access to a mortgage. Some other examples include buying a home as a business owner, funding the expansion of your business operations, and acquiring property for business use.
There are many moving pieces to structuring a financial plan for business owners because business owners must change their financial plan as the business demands investment. When it comes to capital injection for expansion, you may need to liquidate assets, earning a return to meet your business's capital requirement, thus reducing your retirement assets' return and making them illiquid. In this situation, an expert mortgage broker can figure out how to leverage your property for business capital in ways your business bank may not offer, as it's usually outside their interest to loan you more money against your current assets.
Purchasing a home as a business owner can be difficult because qualifying for a mortgage with a traditional bank involves substantial net income to qualify. Your CPA may have some key strategies that reduce your tax liabilities, but subsequently make it very difficult to qualify for a mortgage. This is where an expert mortgage broker can find loan options for your home that allow you to keep your current business tax strategies in place.
After buying a home, you may consider purchasing a building for your business. Again, a business bank is one of many options for a mortgage. Buying a business-use property, such as a retail, office, or industrial property, can come with many challenges for your financial plan. Much like expanding your business, it can include liquidating retirement or operating capital, requiring you to increase your tax liability, and requiring a bank relationship that holds you hostage from shopping for the best terms. As an expert mortgage broker, we have solutions for all of these issues. Because we're constantly brokering loans to commercial banks, we already have relationships with many of them, granting you access to many loan options.
Becoming a real estate investor is often second nature for a business owner. This is because you see it as an excellent additional business to your primary business, from renting out part of your business property and then deciding to expand into investment properties. However, because you're acquiring property as a business owner, you will face the same challenges in the previous examples again. This is another critical situation for your expert mortgage broker to work with your planners so you can maximize your plans for new investment property acquisition and keep your financial plan intact. It's essential to include an expert mortgage broker, your CPA, and advisors on your team so you can be aware of all factors impacting your business property mortgage options.
