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I have a newer business and don't qualify for normal financing based upon my lack of history on my financials and have checked with local and national banks and credit unions. I am thinking about trying AG but want to know what I'm getting into. I'm not a fan of banks in general right now but I basically need the following loans: RV loan, debt consolidation, and/or duplex property loan. I plan on refinancing as soon as I'm eligible with normal banks and depending on prepayment penalties. We have a very stable and successful business in an area that actually has a good economy but just need a little help since we've financed our start-up with personal credit. Long-term we want to pay off all debts with the cash-flow coming in but in the meantime need to do a loan of some type. Any input would be appreciated.
I'm looking for three different types of loans, whether they can all be combined, I don't know. First, we have a lease to own rental property that currently has two houses which we are locked in to buy for $105,000 less the $6,000 we've already put down. It's value is about $150,00 and will continue to increase as we continue fixing it up and putting in sweat equity. Plus its in a new economic development area in our riverfront area. Second, we would like to consolidate about $25,000 - $45,000 in debt depending on the interest rate available. Third, we would like to buy an RV to live onsite of our fixer-upper property in for at least a year, not a new RV but a good used one for under $20,000. Now that we finished remodeling the second house we'll start making a net profit from the busy corporate housing/vacation rental type business we run out of this property and the other property we own that has two rentals. We're currently technically homeless and housesitting forced to rent the homes to pay to finish this last one. We will be slowly adding another rental unit above the current one and later would like to build another building to house more rentals on the same property. It's a large lot with commercial zoning that gives us expansion flexibility for the biz. Anyways, that's our story. We're a very successful business but with only just showing a profit and being in business a little less then two years, we don't qualify for financing yet in this economy. We work to much on our business to have time for outside work and for personal reasons its not an option anyways for my husband and I.
that's a tough situation, that looks to be a great situation once you get some steady income...unfortunately, it looks a bit risky on a bankers point of view.
of course, it wouldn't hurt to visit AG Financial...my mother always told me, "you never get what you don't ask for!"...and also, talking with them may open up some other avenues.
also, talk with others that may be in the same business as you...you know, a little networking. they may have ideas that you haven't thought about.
bottom line, without credit history, assets, and income, it's gonna be real tough convincing someone to buy into what you're trying to do...know any investors??
Yes, its tough, but I guess its what you do when you start-up, it means sacrifice and creativity. Our credit was excellent before our debt load, now I'm not sure where we're at, I need to check. Our other rental property has about $45,000 - $55,000 in equity, its our old home mortgage. Once we get a loan on our current property we'll have $45,000 equity but by the summer it will be much more because of the value we'll have added by then. We do all the remodeling ourselves, even electrical re-wiring by code. We do all the maintenance, cleaning and management ourselves to keep our overhead low. Our net income is finally good starting this month and will continue to grow from here on out. We have until the summer of next year to do financing on the property per our lease or per our lease we can sell it and pocket the profit above our agreed purchase price with the current owners. My business is in high demand with being booked out three months solid in advance on all rentals and very long back-up lists for cancellations. I only have a week here and there open from late Oct to early Dec and then we're slammed again with our bookings back-to-back. We have a great reputation and awesome customers. Our niche is perfect because by doing the type of rentals we do means we make 2-3 times more the income off of them over normal rentals plus we have less risk in getting stuck with a guest who will trash the property since it's short-term and closely managed. We've thought about trying the Prosper website where you can find investors and perhaps trying to find a local investment club. We would love to get a loan on the property because it would lower our current monthly lease payments and would like to consolidate debt because that would lower our payments as well. We have had the cash flow to pull all this off so far for this long and that was without the new income we're getting from our latest rental. We could save up for a trailer in a few months but really need to live on site now with the spring yard work load and planned upcoming improvements, plus we'd like to have a home again.
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