🚀 Starting a Business

Use Nick Hubers Method to Own Your Shop Property

Nick Huber scaled from lawn care to millions in real estate. Here is how local shops can use his blueprint to buy their own buildings.

By MyBizNerd Team · Published

Key Takeaways

  • Business owners often pay five times the building's value in rent over twenty years without ever owning the asset.
  • Nick Huber's path started with low-cost labor businesses like lawn care to generate the cash needed for down payments.
  • Small business owners can use SBA 504 loans to buy property with only 10 percent down, far lower than typical commercial rates.
  • Owning your building protects you from forced moves when a landlord sells to a developer.

Small business owners in the United States currently pay an average of $20 to $40 per square foot for retail space, yet many will never see a dime of that money again. This rental treadmill is exactly what Nick Huber warns against. He argues that the real wealth isn't just in the service you provide, but in the dirt under your feet. While most gurus talk about tech startups, Huber focuses on the 'unsexy' businesses. Business owners like you should pay attention because the math of owning your shop is often cheaper than renting it.

Nick Huber said on X that his story began in southern Indiana with a lawn care business at age 12. By the time he left for college, he had $40,000 in the bank. He didn't get there by being fancy. He got there by doing work others found boring. For a 4-person print shop in Ohio or a solo bookkeeper in Tampa, the lesson is clear: use your day-to-day operations to fuel your real estate acquisitions. Your business should be the 'engine' that buys the building. When you own the building, you control your fixed costs. You stop being a victim of a landlord who wants to hike the rent by 15 percent just because your neighborhood got popular. This shifts your business from a job you own into a long-term retirement plan.

The SBA 504 Loan Advantage

Most people think you need 25 percent down to buy a commercial building.

If a warehouse costs $800,000, that's a $200,000 check. For a 12-person HVAC shop, that cash is better spent on new vans. However, the Small Business Administration (SBA) offers the 504 Loan program. This program is designed for owners who will occupy at least 51 percent of the building they buy. You can often get in with just 10 percent down. gov/funding-programs/loans/504-loans). This turns that $200,000 barrier into an $80,000 entry point. That's a manageable number for a healthy business that has been operating for a few years.

Why Owning Beats Renting for Shops

  • Fixed Monthly Costs: Your mortgage stays predictable while local rents climb every year.
  • Tax Benefits: You can depreciate the building, which helps lower your overall tax bill at the end of the year.
  • Asset Wealth: Every payment you make builds equity in an asset you can eventually sell or lease to someone else.
  • Control: You can paint and expand (plus renovate) without asking a landlord for permission.

How to Prepare Your Books for a Purchase

  • Keep Clean Records: Lenders want to see two years of steady profit on your tax returns.
  • Watch Your Debt: Try to pay off high-interest equipment loans before applying for a building mortgage.
  • Documentation: You'll need your EIN (Employer Identification Number) and your personal tax returns for the last three years.
  • Local Insight: Talk to a local commercial broker to find 'off-market' deals where a landlord is tired of managing the property.

If you can afford the rent, you can likely afford the mortgage.

Start by checking your current lease terms to see when your 'out' is. Many shop owners discover they're month-to-month and don't even know it. Once you know your timeline, reach out to your local Small Business Development Center to get a free counselor to help you look at your balance sheet. This is the first step toward moving from a tenant to a landlord.

📋 Disclaimer

This article is for informational purposes only and does not constitute legal, tax, financial, or professional advice. Laws and regulations change frequently, and the information presented may not reflect the most current legal developments. Always consult with a qualified professional (CPA, attorney, financial advisor) before making business decisions based on this content. MyBizNerd may receive compensation through affiliate links, but this never influences our recommendations.