Should You Own or Lease Your Cosmetology School Building

Episode Title: Should You Own or Lease Your Cosmetology School Building? 3 Must-Haves Before Buying Episode Number: 8 Host: Desarie Anderson, CPA Episode Overview Owning the building for your cosmetology school can be a game-changing investment, but is it the right move for you? In this episode of The Cosmetology School Accounting Podcast, host Desarie Anderson walks you through the critical factors you need to consider before making this major financial decision. Whether you’re currently leasing and thinking about buying in the future or you’re ready to take the plunge now, this episode will provide the roadmap to set yourself up for success. Desarie reveals the three essential must-haves that every school owner needs before purchasing property: ✅ Good Business Records – Your school’s financial history plays a key role in securing a commercial loan and proving to lenders that you’re a responsible business owner. ✅ Money in the Bank – Cash flow isn’t just about making money; it’s about keeping enough reserves to cover down payments, unexpected costs, and financial stability during lean months. ✅ A Trustworthy Commercial Realtor – Finding the right building is about more than just location. A knowledgeable real estate professional can help you find a property that aligns with your business goals and budget. If you’ve ever considered owning your building instead of leasing, this episode is packed with insights and strategies to help you make a smart, informed decision. Why This Episode is a Must-Listen Understand the pros and cons of owning vs. leasing for your cosmetology school.Learn how good bookkeeping and financial records can make or break your ability to buy property.Discover why cash reserves are essential for securing a loan and covering hidden costs.Get insider tips on how to find the right commercial realtor who understands the needs of beauty schools.Walk away with a clear action plan to prepare your school for property ownership in the future. Key Topics Covered in This Episode 1. Good Business Records: Why They Matter More Than You Think Your business records are like a report card—lenders want to see consistency, profitability, and financial responsibility.Work with an accountant who specializes in cosmetology schools to ensure your books are accurate and tax-compliant.Well-maintained records can help you spot financial trends in your business, such as enrollment patterns and seasonal expenses.Lenders will scrutinize your tax returns, profit & loss statements, and balance sheets—get them in order before applying for financing. 2. Money in the Bank: How Much Do You Really Need? It’s not just about how much you make, but how much you keep—saving is key to buying property.Establish a dedicated real estate readiness fund and contribute to it consistently.Cash reserves will help you cover down payments, closing costs, renovations, and unexpected repairs.Loan officers look for liquidity—a strong cash position improves your chances of getting favorable loan terms.Pro tip: Avoid financial surprises by planning for property taxes, insurance, and maintenance costs before you buy. 3. Finding a Commercial Realtor Who Understands Cosmetology Schools Not all realtors are the same—work with someone who knows the unique needs of educational institutions.A great commercial realtor will: Help you understand the market and find a property that fits your long-term growth plans.Connect you with contractors, inspectors, and local officials who can assist in the buying process.Ensure you’re not overextending your budget or investing in a property that doesn’t suit your business.Guide you through the legal and logistical hurdles of property ownership. How to find the right realtor: Interview multiple candidates and ask about their experience with educational or commercial properties.Check references and past client reviews.Look for a realtor with strong local market knowledge and a well-established network of industry professionals. Actionable Steps: How to Prepare for Property Ownership If you’re serious about buying a building for your cosmetology school, here’s what you should start doing today: ✅ Hire an Accountant: Work with a CPA who understands the unique financial landscape of beauty schools. Solid financial records will be essential when applying for financing. ✅ Start Saving Now: Open a dedicated real estate fund and set aside money consistently. Even small contributions can add up over time. ✅ Check Your Credit & Business Financials: Before applying for a loan, review your business credit score and make sure your financials are lender-ready. ✅ Build Relationships with Lenders: Even if you’re not ready to buy yet, start talking to banks and lenders now to understand your financing options. ✅ Interview Commercial Realtors: Don’t settle for the first realtor you find—look for one with experience in educational and commercial properties. ✅ ...