Small Business Loan etc help. (credit, lender, mortgage, borrow)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Wife and I are thinking of venturing into a small business. We want to invest in real estate, buy n sell.
Well, she is a Realtor, and has been the go to Agent for 3 individuals doing just this in our area in SC. Two have left state to retire, and taught her the business, and she knows the licensed crews to fix up the homes. So basically, they have the funds and she finds the property's, acts as the agent to buy, then sell after renovating etc to command a higher price..
My question is, Can I get small business loan through a bank or VA, as I am a Veteran, disabled too.
And, with that being said, does anyone have experience in Small Business loans for this kind of adventure?
I know this is quick and to the point. Just getting feelers and thoughts, experience from others.
Thnx in advance, just testing the waters.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
44,585 posts, read 81,206,701 times
Reputation: 57821
I had a business for 16 years and never had to take out a loan, but had looked into it for potential expansion. It will require a track record, usually at least two years, and collateral. The chances of getting a loan to start a business is very small, except for crowdfunding such as Kiva or gofundme.
Collateral and track record are established.
So, just no chance of loans
Even having collateral isn't enough. When they say "track record" that means the bank will want to see at least 3 years of tax returns with business income/expenses. They will also want at least 3 years of audited/verified financial statements from a CPA. The bank will NOT accept financial statements you prepared yourself.
Three years may not even be enough and they may want to see five years worth of data.
IOW, you have absolutely no chance of getting a business loan for the type of business you described above.
"Banks are a place where rich people go to borrow money" - Bob Hope
Even having collateral isn't enough. When they say "track record" that means the bank will want to see at least 3 years of tax returns with business income/expenses. They will also want at least 3 years of audited/verified financial statements from a CPA. The bank will NOT accept financial statements you prepared yourself.
Three years may not even be enough and they may want to see five years worth of data.
IOW, you have absolutely no chance of getting a business loan for the type of business you described above.
"Banks are a place where rich people go to borrow money" - Bob Hope
Never forget that.
Dang, our CPA we were with yesterday, didnt seem to think as negative as you are presenting this..
I guess we shall see.
I know a lot of flippers and not one of them gets money from the bank for the flip. If they borrow money, it is from hard money lenders, or from an equity loan on their personal residence.
If a house only needs minor cosmetics, you might be able to get a commercial mortgage (rental, non owner-occupied), but you probably won't make enough on a minor cosmetic fix to pay for bank loans and multiple partners after closing costs.
I suppose you could ask at one of the real estate investor forums. I don't think they will be able to tell you how to get a bank to loan you money to flip, but you could ask. REIclub and Bigger Pockets are the two sites I know of.
Last edited by oregonwoodsmoke; 03-31-2017 at 01:29 PM..
I'm confused...you state in your comment "they have the funds but your wife just needs to find the property". If you have investors then why do you need a small business loan? Also the VA only loans on owner occupied properties.
Entice the seller to offer seller financing and just have them carry the note and when you finish renovating you find a buyer and sell them the property with a lease option.
However if you dead on set trying to get a loan go to your local credit union. Since you are a vet...I would sign up with Navy Federal and try and get a LOC. I'm retired military and been doing REI since 2006 and the first few properties I purchased I actually used my CC for the earnest money and just did some basic touch up and found another buyer and assigned them the deal and at closing I usually walked away with around 3200.00. I know not a big payday but multiply that by 3 properties a month. Now I just buy and hold and live off my residual monthly income. FYI get yourself a great property management company!!!
I'm confused...you state in your comment "they have the funds but your wife just needs to find the property". If you have investors then why do you need a small business loan? Also the VA only loans on owner occupied properties.
Entice the seller to offer seller financing and just have them carry the note and when you finish renovating you find a buyer and sell them the property with a lease option.
However if you dead on set trying to get a loan go to your local credit union. Since you are a vet...I would sign up with Navy Federal and try and get a LOC. I'm retired military and been doing REI since 2006 and the first few properties I purchased I actually used my CC for the earnest money and just did some basic touch up and found another buyer and assigned them the deal and at closing I usually walked away with around 3200.00. I know not a big payday but multiply that by 3 properties a month. Now I just buy and hold and live off my residual monthly income. FYI get yourself a great property management company!!!
Good luck to you!
I understand you are confused. Wife needs to find property's to buy. Not everything is on MLS, as some is auction etc. As a realtor, thats what she would do.
And, there are hard money lenders, but you still need start up money, for example, labor to fix the newly purchased homes to get them to be profitable..
I will get with NFCU, as we just established our LLC and S Corp..
Thanks
I understand you are confused. Wife needs to find property's to buy. Not everything is on MLS, as some is auction etc. As a realtor, thats what she would do.
And, there are hard money lenders, but you still need start up money, for example, labor to fix the newly purchased homes to get them to be profitable..
I will get with NFCU, as we just established our LLC and S Corp..
Thanks
Why do you have both?
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
?
