Buy Leased Building?
James should only buy a building when he knows from the track record of his business what his building needs are going to be.
ANSWER: You should only buy a building when you know from the track record of your business what your building needs are going to be. If your business is growing rapidly, you may want to hold off on buying a building because you’ll start to focus too much on real estate rather than growing and generating revenue. Don’t lose sight of your business in order to get involved with real estate.
You also want to make sure you’re going to be in that particular building for a while because you don’t want to be stuck with a residual.
In the first three to five years of starting your business, you should lease. After that, you can choose to lease with an option to buy or, in some situations, buy a building.