You will soon be on your way to small business success with free grant money to fund your dreams. Don’t give up. Keep filling out applications until you get the money you need to turn your business dreams into a reality.
Rent is too high – Right now is a good time to renegotiate with your landlord. commercial property is going through the same issues that the housing market has been facing. A paying tenant is better than no tenant. Lower costs improve profit.
Then jot down all things you would like to have, experience and own during your retirement. This would include things like vacations, finances, assets, home, hobbies etc. This will help you plan out your retirement so that you can own as well as experience these things without feeling the financial crunch. Do not forget to take into account health care as well as emergency situations.
Auctions are a good source of properties but you have to know first how it all goes, from beginning to end, basically the whole process. Bing familiar makes it easier for you to win the bid and come out successful. You can also go to auctions and just make observations if you are not yet ready. This is a good way to familiarize yourself with auctions.
Before applying for these loans, keep all the documents of your business ready for producing them before the lenders. They will also like to know about your repayment capability and prospects of your trade.
Loan to values, as in the difference between what a property is worth vs. what is owed, is another key ratio to reduce risk for banks. The normal high side for the typical owner occupied property, such as office, industrial or retail, is 75%/80% on a refinance. This is being dropped pretty much across the board to a max of 70%. Special purpose properties, such as, restaurants, automotive, hotels, daycares, etc are taking the brunt of it, as many lenders will not lend beyond 60% loan to value. Many lender have simple stopped lending on these properties all together.
You want to hone your skills so you can become a great landlord down the road. A lot of people who become landlords do not actually have the skills to do that. They have properties that sit vacant. They don’t know how to fix problems. They let contractors take advantage of them. They end up with negative cash flow.
If your business occupies some of the space, what percentage? Is it more than 25%? Is it more than 50%? Many lenders will consider it an owner occupied deal if you’re in more than 25%. Virtually all lenders consider it owner occ if your business occupies more than 50% of the subject building which will give you better terms.