Ivy Hartman: Well increasing your profits and changing your lifestyle as a result can be done simply, that’s according to our guest today Christopher Hurn. He’s the co-founder, President and CEO of one of the fastest growing companies in America. Welcome to SBTV.com Chris.
Chris Hurn: Thanks for having me.
Ivy Hartman: Absolutely, Chris says before starting his own company Chris served as the chief financial officer for a large commercial real estate brokerage firm. He also has a vast experience with organizational as strategic advisor for small mid-sized businesses. And where he helped increased their profits.
Okay, now you’re here with simple, wealth creation strategies for business. Where do we start getting rich?
Chris Hurn: First thing is they should own their own building.
Ivy Hartman: Okay.
Chris Hurn: Okay, it’s a simple way of basely taking the rental payments if they’re leasing, and paying the bank and actually buying an asset that they can build some equity in, very simple. The next strategy in relation to that is actually owning real estate apart from the operational business. Not owning it personally not owning in your companies name now, but actually owning it in the separate real estate holding company. That way, if you have ever sell your business you can still retain the commercial real estate which your company has been paying up to this point. It’s a great little strategy in fact, it’s a remarkable retirement strategy that works for last small businesses.
Ivy Hartman: I don’t think it’s what business owners think about being a commercial investor and in property when they go in to open their business, but that’s a great tip.
Chris Hurn: Yeah, I mean they shouldn’t think about it in the early years of course, but its as they mature as a company as they established themselves in marketplace is definitely some of these they look into.
Ivy Hartman: Okay, what other strategies for profit.
Chris Hurn: When they are buying properly they should always buy a little bit more than what they need. Ideally, they can sub-lease it out just some tenants, okay, or they actually rooms to expand into as they continue to grow their companies. So that’s something a lot of folks don’t think about. They buy I mean renting 5,000 square feet now. I’m going to go find the building that 6,000 square feet, and that’s you know I’m crammed right now and I’ll do it. Well, what happens is that they moved in a 6,000 square feet they really need a 10,000 square feet. And so a couple of years they got to move again. That’s not a very good strategy. So I always tell people to get a little bit more what they need.
Ivy Hartman: That’s always a hindsight. You know hindsight is always 20-20 here you're giving it to us on the front end, make sure you were just get more what you need when it comes to commercial real estate.
Chris Hurn: Absolutely, now the strategy I would suggest is try and include epiphany which is furnish your pictures and equipments. A lot of people don’t think about it. The reality is with financing like what we provide with five or four loans. We can actually include equipment that could be like audio-visual equipment, cabling. You could have cubicles all sort of things like that included in the total project demand which we financed 90% of, and then what you have is all of these depreciable assets or on and much longer term commercial real estate terms. Even though you can depreciate them on the shorter IRS schedules you know five and seven years usually. They actually improve casual dramatically. You’re going to pay cash for these things. We’re getting a short term no and it’s going to impact your casual in the near terms, so by doing this including all those part of the project it’s going to help you out along.
Ivy Hartman: Okay, are there any final tips for our viewers?
Chris Hurn: Well, the last tip I would say with all business they should utilized smarter financing. And what that means is they need to get the lowest down payment possible with the longest terms possible. That way they can have take they needed to. You don’t want to tie up all your capital in an ordinary conventional bank loan if you don’t have too. You also want to try and maximize your repayment terms that way in good times you can accelerate your payments, but in bad times and soften the economic times. It’s not going to be something that’s going to be really be a grueling monthly payment, so you can do that best for the five or four loan.
And while I could tell people they sometimes go on, “Yeah, but this is not some government loan program usually.” Yes, it is, but we drive on public roads, I don’t know too many people are going to turn away social security someday. They take protection from the police, the military, etcetera. If the SPA actually has a program that cheaper financing that’s more advantageous for you that’s half to third the money down that’s longer terms which keeps your monthly payment lower. I think you become a foolish not to take it. Don’t you think?
Ivy Hartman: Yeah, I would think that makes a sense I mean to—but also you mean a lot of sense in owning your own commercial property and a lot of the tips you’ve given us as far as financing. That’s really going to generate your wealth and your profits a little bit a lot more.
Chris Hurn: That’s absolutely. Well, 60% of small business owners had never saved a penny for their retirement. So the easiest thing to do if they retire strategies rather than to defeat, convert their existing rental payments into a mortgage payments. That’s very, very simple to do, and usually doesn’t cost much more.
Ivy Hartman: And then when you sell your business. You’ve got tenants in there, and you just generate still laying your pockets with that money.
Chris Hurn: That’s right. It works for the big boys if you were for the small business.
Ivy Hartman: Perfect, thanks Chris for being here on SBTV.com. If you want more information on some of the tips we’ve discussed here today. You can go to Chris’s website at 504experts.com. You can also look for more helpful segments and articles from Chris right here on SBTV.com where small business is our only business.
Transcription by:
Scribe4you Transcription Services