Myself and two partners are in the process of buying a building (we have a contract on it) and we have a great budget and business plan written for a 24 hr diner downstairs and a lounge/bar upstairs. I own a home and the other two rent. We have very little money to put down and would like to find a place to help with a loan. We are supposed to meet with the SBA local office this week. Any thoughts, advice? Thanks!
Posts Tagged ‘little’
How do I get a business loan with little or no money down?
March 31st, 2010Business Loans Sources: Sometimes You Have to be a Little Creative in Finding the Money
March 7th, 2010The recent credit crunch has caused banks and other traditional lenders to tighten their underwriting standards. Financing for start-up and small businesses has become more difficult to obtain. Now, more than ever, entrepreneurs have to be a little creative in seeking financing. If you are a business seeking financing here are few sources that may aid you in your search.Angel Investor
Angel investors look to invest in businesses that return a higher profit than a traditional investment. Many angel investors are successful entrepreneurs who want to help other entrepreneurs get their business off the ground. Angel investors look for businesses which can successfully compete in an industry. Angel investors usually come at the stage of a business where some funding has been obtained but the business needs a significant amount more to get to the next level. Financing from an angel investor is usually expensive with costs ranging from 10 to 50 percent of a company’s equity. SBA
The SBA assists in obtaining a loan by guaranteeing the loan you get from a bank. Many banks have SBA loan centers and the process may even be streamlined where you do not have to wait long for an answer. The SBA is not a direct lender. Banks are willing to fund the business because the SBA backs the loan in case of default. The SBA guarantees up to 85% of a loan, depending on the size, type and maturity of the loan. There are several different types of SBA loan programs available. Community Express Loans
Community Express is administered through the SBA loan program and is available at various selected lenders. This loan program is for pre-designated geographic areas serving mostly low and moderate income individuals and start-up small businesses. The program also includes technical and management assistance. This assistance is designed to help increase the chances of success for the small business.Micro Business Loans
This loan program provides small loans to start-up, home-based and micro-businesses. Entrepreneurs with less than perfect credit needing to start or expand a business may benefit from a micro loan program. The loan does not come directly from the SBA. The SBA provides low-cost loans and grants to intermediaries such as community economic development centers which redistribute the funds to qualified small businesses in the form of micro business loans. You can borrow as little as $1,000 up to $35,000 and loans must be repaid within six years. Patriot Express Business Loan
The SBA has launched a new loan program for military service members, veterans and their spouses called the Patriot Express Loan Initiative. The Patriot Express Loan builds on the more than $1 billion in loans the SBA guarantees annually for veteran-owned businesses. The loan can be used to establish or expand a small business and the maximum loan amount is $500,000. Social Lending
Peer to peer lending is not only for personal loans but can also be used for business loans. This type of lending matches borrowers directly with lenders, circumventing the banks. It is a great alternative to traditional banks’ stringent business loan requirements. With peer to peer lending, a typical loan could be funded by as many as 100 people, thereby increasing the chances your loan will get funded. www.Prosper.com and www.globefunder.com are peer to peer lending sites which also offer business loans.Friends and Family
Not surprisingly, more than 50% of all start-up costs for new entrepreneurs come from friends and family. America thrives on entrepreneurship and friends and family are a big source for start-up costs. If your credit is weak you may have little alternative but to seek a loan from a friend or family member. This form of lending has so evolved that there is now a website which will help you facilitate a loan between friends and family. www.virginmoneyus.com will provide formal loan documents between friends and family.
More resources can be found at: Business Loan Sources
How to buy homes with little to no money down in Maryland?
January 29th, 2010I always see it on television and realtors are always hinting at it as an alternative if you don’t have much money, but what exactly do you have to do and how much do you REALLY need to buy a home with NO MONEY DOWN?
I’d really like to get this home that starts in the mid 300’s here in Easton. But I’m an average worker with average income (around 30,000/yr)
How do I qualify for no money down and what would my monthly cost be? I can only afford about what I’m paying rent for and that’s $850. I guess I could swing $900 a month if I budgeted my income differently and cut out some expenses I indulge in.
Any info would be helpful.
Thanks.
I’m single and would be a first time buyer if that helps any.
What can you tell me about financing rental home investments with little money down?
January 24th, 2010I am in the process of researching my options when it comes to purchasing rental homes. I have money in the bank, but want to do this with as little money out of pocket as possible. 10% down would be the most I’d want to put down on a rental investment. My credit score is in the low 700’s.
I’d like to build a portfolio by working with the same people – realtor, lender, etc. My goal is to purchase at least one rental a year for the next 10 years, although I know that once I get started, provided I can make each one cash flow, I’m going to get the bug and want to purchase more than one each year.
Who has done this before and worked with lenders that went above and beyond for them and made the process not only easy, but somewhat enjoyable? You can always learn from others experiences.
What are the downfalls to little down on investment homes? Is the difference in interest rate that you pay by only putting 5-10% down really a concern?
