I am thinking about starting a co-working space in New England (USA) and I was wondering if it is better to buy a building or lease an existing building. I am also looking to buy a house right now and was wondering if I could roll a co-working space and house into the same property somehow, but zoning and codes seem complicated. So I guess I am wondering - is it better to get a business loan and buy a commercial space or is it better to find an existing venue and rent? How have others managed to finance their property? I would love your feedback as I try to get started!
I am thinking about starting a co-working space in New England (USA) and I was wondering if it is better to buy a building or lease an existing building. I am also looking to buy a house right now and was wondering if I could roll a co-working space and house into the same property somehow, but zoning and codes seem complicated. So I guess I am wondering - is it better to get a business loan and buy a commercial space or is it better to find an existing venue and rent? How have others managed to finance their property? I would love your feedback as I try to get started!
Thanks so much,
Kia
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Owning or leasing a space won’t simplify your zoning code compliance.
Owning a building can be ideal, but operating a business you own in a building you own will complicate, or even prevent you from getting bank financing.
I am thinking about starting a co-working space in New England (USA) and I was wondering if it is better to buy a building or lease an existing building. I am also looking to buy a house right now and was wondering if I could roll a co-working space and house into the same property somehow, but zoning and codes seem complicated. So I guess I am wondering - is it better to get a business loan and buy a commercial space or is it better to find an existing venue and rent? How have others managed to finance their property? I would love your feedback as I try to get started!
Thanks so much,
Kia
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You needn’t worry about whether to rent or buy until you do about 100 other steps first to establish that there are real people interested in what you want to do. Most of the chapters in my latest coworking workbook have hands-on activities you can complete over the course of a few weeks to determine the viability of your idea. Once you have a small posse of raving fans, you can worry about real estate. https://www.diycoworking.com/shop/ultimate-coworking-launch-sequence-ebook
Angel
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On Friday, October 26, 2018 at 4:26:05 PM UTC-6, Kia Moore wrote:
Hi everyone,
I am thinking about starting a co-working space in New England (USA) and I was wondering if it is better to buy a building or lease an existing building. I am also looking to buy a house right now and was wondering if I could roll a co-working space and house into the same property somehow, but zoning and codes seem complicated. So I guess I am wondering - is it better to get a business loan and buy a commercial space or is it better to find an existing venue and rent? How have others managed to finance their property? I would love your feedback as I try to get started!
I opened my first coworking space in the former stable attached to my house. The house is over 400 years old and was (we think) originally a guest house for the 16th century cloister up the road.
(As an American can I just take a moment to boggle at this. Y’all from eastern europe, I know a 16th century cloister is new construction for you, bear with me here. )
Aaaanyway, the former stable was converted by a former owner to office space and it is now coworking space. The advantages of a carriage house coworking are legion, I have to say. Amoung other things, you have a very reasonable landlord.
It was important in all this to present the space as what it is, it is a home for small business and freelancers and so everything about it is informal and cosy and homey. It was hard not to give in to the urge to make everything all corporate, but I did and am glad. I find this is key to all of the spaces I have worked with: the first thing I do is find out a lot about the location itself, the people who live there, and its history. Everything about it is informed by that. Even the types of memberships are different depending on the surrounding community.
I am going through a similar situation now. Buying either first will drain your financial flexibility. There are pros and cons to both leasing and buying. Leasing has less upfront dollars but you don’t own the property. Buying has more up front costs but you will own the property and control your environment.
You may want to consider property in business areas and neiborhooods that have retail space on the lower level and apartment space on top. You will own the property and once paid off you can sell or rent out.
Hi kia,
According to me its better to lease an existing venue and rent it out why because the business operations are already going on in the existing venue, so its not a complicated task to manage.
On Saturday, October 27, 2018 at 3:56:05 AM UTC+5:30, Kia Moore wrote:
Hi everyone,
I am thinking about starting a co-working space in New England (USA) and I was wondering if it is better to buy a building or lease an existing building. I am also looking to buy a house right now and was wondering if I could roll a co-working space and house into the same property somehow, but zoning and codes seem complicated. So I guess I am wondering - is it better to get a business loan and buy a commercial space or is it better to find an existing venue and rent? How have others managed to finance their property? I would love your feedback as I try to get started!
You are in the perfect position to do a “House Hack”. You will need a commercial loan.
You find a commercial property with space downstairs and three to four apartments upstairs. You live in one and rent the others out to help pay the mortgage. You may be able to cover the entire mortgage if the local rents are strong. It is a great strategy if it can fit your current lifestyle.
If you don’t want tenants you could buy a large house that has been converted to commercial (former law office, real estate office, insurance office, etc…) I am not sure about New England, but in Ohio we have these on Main Street in every town and city. Many of these already have living quarters upstairs.