If you read the last article how to position yourself for greater profitability when it comes to your Store location and rent (Read article here) then this will make …some sense…we hope. You may want to revisit the article and refresh your memory to get the most of this follow up segment!
Letters: We Get Letters… and Telephone calls TOO!
By Nestor Palmero
After our last Pro Members Newsletter some of you took the time to “find me” with some great follow-up questions and comments as well as excellent ideas for future articles that you would like to see here in this column.
I say took the time to “find me” because we did not give you good contact info in the newsletter. Starting with this issue we will correct that!
Of all the commentary I received one in particular really caught my attention. When I asked if I could share it with our membership I was told: ”Sure, just don’t use my name”.
The call came on a Saturday morning, I answered and the voice on the other end stated: “Not a bad article Palmero, but you should have put the disclaimer at the beginning not the end; and how about ownership of Real Estate… you did not mention that?”
Ownership of Real Estate?… He was right I had not mentioned that …but should have!
In our last article we discussed the economic crisis had effected housing and all indicators is that it will also affect commercial Real Estate and we talked about the steps to take IF you were going to seek a new location for your store.
Ownership? Yes Ownership! The caller quickly got my attention his story simply went like this… I bought this building because I wanted to pay rent to myself NOT someone else. It is my retirement account, when the market was HOT it was worth a cool million so even if it’s only worth $500,000 now…? What would I have had if I had rented?
This strategy discussion is as old as time and we won’t settle what may be the best approach here. It always comes down to a personal decision best reached with the assistance of a good CPA and a good Attorney, I know what you are thinking but yes there are some good attorney’s out there…somewhere.
Make sure to weigh all of your options but remember you are in Retail and think accordingly! It is all about LOCATION- LOCATION – LOCATION so the assistance of a good Real Estate agent maybe also in order…you will probably find nearby when you find that attorney!
About the writer, as you can see from this article, obviously he has no plans to be seeking the advice of a Realtor or Attorney anytime in the foreseeable future!
Nestor can be reached by emailing firstname.lastname@example.org