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Description
To reduce risk, every business owner should strive to diversify his or her assets and investments. Real estate has compelling characteristics and is a must-have in every business owner's portfolio. Here are tips for making the most of your move into real estate.
1. There's No Place Like Home: Everyone's #1 goal should be to own his or her own home and pay down debt so they'll have a substantial amount of equity. Philosophies differ on whether a completely paid-off home makes financial sense, but I'd argue that full payoff is a prudent goal for the business owner. Why? First, most business owners have debt against their business. Assuming the business is organized as a pass-through entity (basically, any legal entity type besides a C-corporation), you're getting an interest expense deduction--just as you would get for interest on home mortgage debt. Second, private business is a risky thing. You never know how the competitive or economic landscape could change in the future.... |
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