Foreclosures on commercial real estate are accelerating. They’re one of the many long-term consequences of the COVID-19 pandemic that are affecting enterprising families. As real estate values weaken, it may be time for your family business to reevaluate your real estate strategy. Here are three real estate strategies for enterprising families.
One strategy enterprising families should consider, according to Travis Harms, is the operating business should own the real estate needed for operations. This strategy is the simplest to implement, and it tends to be less risky. Lenders often view real estate as a reliable asset. So, by owning real estate, a family business can increase its borrowing power and capitalize on investment opportunities that may arise.
This strategy is often the default for enterprising families. To learn about two other strategies, check out “Real Estate and the Family Business.”
Read about the three real estate strategies for enterprising families here.
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