Guest column: How to prepare your business for uncertain real estate market - Albuquerque Business First
If there’s one common theme that resonates across the real estate market, from property owners, to investors and developers, it’s uncertainty. Enterprise Bank & Trust executive, Mike Eriksen, offers advice on how to navigate uncertain times in the world of real estate. Changes in the market, such as interest rates, inflation, and rising operational costs, can negatively impact real estate businesses. This uncertainty applies to all levels of ownership and tenants alike, including property owners and investors. Financial decisions that affect your business can impact your long-term financial state can be made. Financial strategies should include consideration of efficiency and risk alongside growth, securing the best loan possible for acquisition, construction or refinancing, and exploring tax credit programs or nontraditional loans for future growth. Additionally, consider exploring specialized financing options such as historic tax credits, bridge loans or the federal New Markets Tax Credit program.
Veröffentlicht : vor 3 Wochen durch Jessica Kuhn in Business Finance
Enterprise Bank & Trust exec offers this advice for how to navigate uncertain times in the world of real estate.
If there’s one common theme that resonates across the real estate market, from property owners, to investors and developers, it’s uncertainty.
Constant changes in the market, such as interest rates, inflation and rising operational costs, to name just a few, have the potential to negatively affect real estate businesses. With no crystal ball to read the future, all levels of ownership are seeing changes to their investments and bottom lines.
This uncertainty applies to not only the owners but also their tenants. Changing work environments in the wake of the pandemic, an increase in automation and the rise of AI are just a few factors contributing to challenges and income shortfalls.
Thankfully, uncertainty in the real estate market doesn’t have to spell misfortune.
Identifying the best approach for your business
The way in which companies are adapting to stay in good financial standing looks different for each business owner, but one thing is clear: Financial decisions made now have the potential to impact your business’s long-term financial state.
A few initial steps to take in order to manage risk while navigating the ever-changing state of the real estate industry include:
For any business, financial strategies should consider efficiency and risk alongside growth. Whether you’re an investor, owner or asset manager, securing the best loan possible for acquisition, construction or refinancing is more important than ever.
For some real estate businesses, taking advantage of tax credit programs or nontraditional loans can prove essential in successfully positioning your company for future growth — even in the midst of market instability. Consider exploring specialized financing options, such as historic tax credits, bridge loans or the federal New Markets Tax Credit program.
To take an even more well-prepared approach to positioning for the future, include the following measures as you continue to strengthen your financial position:
As we continue to move toward an increasingly unpredictable path in the real estate sector, it is more essential than ever to have a nimble financial strategy that aligns with your business goals, and to have good communication with your banker.
Themen: Real Estate