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Article: Business owner and real estate: a winning combination.(management and influence of real estate industry on business owners)
- Article from:
- The Business Owner
- Article date:
- March 1, 2007
CopyrightCOPYRIGHT 2007 D.L. Perkins, LLC. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Real estate is an outstanding investment. Let's count the ways:
1. Durable Value: Unlike businesses, where value may swing wildly with the ebb and flow of profits, real estate has value aside from the cash flow it generates. Businesses almost always are valued on their profits. Real estate almost always is valued on the comparable sales method. That is, what do other properties of this type go for per square foot?
Another example of durable value is that, with a business, if something bad happens, the value may go down to zero. Take a restaurant: Serve some really bad food for just a day or two, and the business may be ruined. In contrast, improvements ...