I built a small retail store from ground up ...it took me 5 years to do that. I opened the store in January of 2008. The building is paid for, ...but the land have a small balance. When the price of gas went up to $4.00 a gallon last summer my business and I suffered. Now I need money.. My credit is bad. Now I work full time and hope to open the store in mid May. Does any one have any ideas?
Window Shopper,
I'm a little confused. Your building is paid for but you owe still on the land? Like Mr. Score mentioned you may be able to get a 'Hard Money' loan, but I'd need more information to advise. I do disagree with one thing that was said about the Hard Money lenders; today they do not want to foreclose. The Hard Money that is out there wants to make sure that their loan can be repaid. Typical terms are 1-3 years with rates from 10-20%. Since most banks are very strict on thier lending terms, the Hard Money lenders are stepping in; albeit at a cost.
Window Shopper,I'm a little confused. Your building is paid for but you owe still on the land? Like Mr. Score mentioned you may be able to get a 'Hard Money' loan, but I'd need more information to advise. I do disagree with one thing that was said about the Hard Money lenders; today they do not want to foreclose. The Hard Money that is out there wants to make sure that their loan can be repaid. Typical terms are 1-3 years with rates from 10-20%. Since most banks are very strict on thier lending terms, the Hard Money lenders are stepping in; albeit at a cost.
Matthew,
Single-family, hard-money lenders are spooked by deeply falling real estate values and do not want defaults. That's not the same with commercial properties that have substantial equity. These lenders are salivating at the chance to own the properties.
Jerry Chautin is SBA's 2006 national Journalist of the year' award winner and a volunteer SCORE business counselor
Matthew, Single-family, hard-money lenders are spooked by deeply falling real estate values and do not want defaults. That's not the same with commercial properties that have substantial equity. These lenders are salivating at the chance to own the properties. Jerry Chautin is SBA's 2006 national Journalist of the year' award winner and a volunteer SCORE business counselor
Depends upon how long this goes on. If it is going to be for some time, you may consider renting the property out to a third party. Then, it could stop being a burden and provide an income stream to help pay off its own balance.
When the lease comes due, you are not obligated to renew.
Depends upon how long this goes on. If it is going to be for some time, you may consider renting the property out to a third party. Then, it could stop being a burden and provide an income stream to help pay off its own balance.When the lease comes due, you are not obligated to renew.
your builings are paid off then you should have siginificant equity. Your credit being bad is a problem but can possibly be worked around in some circumstances. i suspect a cash out refinance might be a good idea for you if you can arrange one. You have equity locked up in the builings you've paid off, it's just a question of how you can unlock it.
Bad credit won't get you a bank loan --- even with the real estate you have to pledge. The alternative is ferreting out hard-money lenders in your area. They make short-term loans at 60-75 percent of value at high rates. Be aware that they would be glad to foreclose and own your property if you can't make the payments.
In this market your alternative are limited.
Jerry ChautinBusiness journalistVolunteer SCORE business counselor, Atlanta, Sarasota & Murphy, NC
MatthewLoans2U | Window Shopper | 3/25/2009 - 10:13 pm
JerrySCORE | Performer | 3/26/2009 - 2:43 pm
PatMcKee | Window Shopper | 3/5/2010 - 11:29 am
mrhelpful | Contributor | 3/8/2010 - 4:46 pm
JerrySCORE | Performer | 3/25/2009 - 5:17 pm
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