Real Estate That Is Also A Business

October 31, 2025

Since this is the Halloween issue(Boo!) it was very tempting to write about creepy businesses (yes there are some). But with not enough time to research that topic I decided to go with this topic that might actually be helpful to some readers.

Real estate has taken a turn in the last 5 years. Interest rates are high, prices are high, and sales are slow. I’m talking about commercial real estate of course. Rents are high but as long term leases expire (commercial leases are typically 3 to 10 years and sometimes even longer), there could be a lease rate decline. Since the value of commercial real estate is based on the income that it generates, a decline in lease rates should bring the property values down somewhat. In fact, I’m seeing that now in some parts of Texas. As the commercial loans come due for renewal (usually every 5 years) the old loans are now renewing at a higher interest rate. That means cash flow is decreasing.

It Used To Be Normal

The biggest issue isn’t that interest rates are too high. They are currently at a rate that has always been considered normal. But when the rates were ridiculously low that caused prices to go way too high in all types of real estate.

So maybe the smarter play is to look at real estate that is also a business. Below is a list of some of those businesses:

RV Parks

Self Storage

RV and Boat Storage

Hotels

Car Washes

Entertainment Venues

Golf Courses

Marinas

Good News

In this type of real estate it is difficult or impossible to separate the business from the real estate. You can’t pack up your RV park and leave the land behind. So you have to be ready to operate a business. If you are not someone who would be inclined to operate a business like these, don’t worry. Here is the first bit of good news. You can hire managers or management companies to run any of these businesses. There are companies that specialize in managing each of those business types listed above. If you wish, you can own it without being a hands on owner. Just remember they will charge a fee for the service. In some cases, like with hotels, the lender will likely require you to use a hotel management company.

More Good News

The second bit of good news is the financing. A lot of these properties are mom and pop owned. As they get ready to retire they are selling off their businesses. And a lot of them are willing to seller finance. Why? Because it makes the deal easier for both parties. In a lot of cases they can beat the bank on interest rates. They can defer the taxes and spread it across the term of the loan. And they can continue to earn income on the property without having to do anything. The bonus for them is they will make more from the sale because they’re charging the buyer interest. Also, since it is a business, SBA backed loans possibly with lower down payment requirements are possible.

So, can’t decide between buying a business or investing in real estate? Why not do both! RV parks and RV storage are especially popular right now. It’s estimated that one million people in the US are living full time in an RV. And one in twelve households own an RV. So they need a place to go when they travel and a place to store the RV when they aren’t traveling.

I hope this gives you some ideas. Don’t be afraid to be creative. Don’t be afraid to ask for seller financing. You never know until you ask!

That's it for this time. See you next week!

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