Q. My husband and I live in a very small town in Illinois. There is a business for sale here in our town that actually consists of two buildings. One building is a empty business front with some apartments above. The other building was is an icecream parlor/fast food restaurant with all equipment. These two are being sold as a package deal and will not be seperated.
My husband is the only one who works in out family of 6. I go to school, take care of the kids and house and help out at their school. We are interested in purchasing these buildings, but with limited income comes limited funds. My husband has experience running a restaurant and in very busieness savy. We also own rental property in Kentucky so we have experience as land lords.
Our question is this...is there anyway for a lower income family to get a loan or grant to purchase these properties? I am almost certain that we will not be able to get a grant because it is not a non profit business venture. THANKS!
My husband is the only one who works in out family of 6. I go to school, take care of the kids and house and help out at their school. We are interested in purchasing these buildings, but with limited income comes limited funds. My husband has experience running a restaurant and in very busieness savy. We also own rental property in Kentucky so we have experience as land lords.
Our question is this...is there anyway for a lower income family to get a loan or grant to purchase these properties? I am almost certain that we will not be able to get a grant because it is not a non profit business venture. THANKS!
A. Contact a local bank and ask them about the SBA 504 Program. You will need at least a 10% equity injection (down payment) If you have equity in your personal residence or in the property in Kentucky, you may be able to offer that as additional collateral.
Should I buy a foreclosed property so that I can have collateral to get a small business loan?
Q. My score is a 604, I'm 21. I want to start a business but I dont have any thing to put up as collateral. I thought about buying a house for cheap and rent it out until my credit score raises. Is this a great idea? buy the way i rent an apartment.
Yes I have extra income to invest in a property. I have already considered the risks.
Yes I have extra income to invest in a property. I have already considered the risks.
A. Remember that a rental property requires insurance, maintenance and repair, taxes, tenant screening and management. Do you expect to have enough cash flow from the rent to cover all that plus the mortgage?
What are the advantages and disadvantages of creating a business for a small time landlord.?
Q. I'm just getting started with rental property (I have had one for a year and am looking at buying another one soon). At what point is it a good idea to make it a business and what are the reasons for making it officially a business?
I was talking about getting it chartered as a business with the government. With business loans instead of regular mortgages etc.
I was talking about getting it chartered as a business with the government. With business loans instead of regular mortgages etc.
A. it helps protect your money -personal- you should inc or llc as soon as possible to protect yourself in case something happens and you are sued by a tenant.or more likely a guest. I managed 48 apts and 12 or so houses and have seen several people try to sue the owner ( they lost ) but the inc protected him from direct suits against him as for the loans You are not guaranting them the company is. So your personal income and property are not subject to seizure and sale if teh company defaults. Talk to a good atty about your states laws Also i would recommend the you hire yourself as a mgr and pay the taxes incl fica so it will be applied toward your retirement just in case 1 owner went under at the age of 60 and is in big trouble now hope that this helps
How to begin any medium sized business along with a partner? What are the pre-requirements?
Q. I wish to start a small to medium sized business. I want to know what are the pre-requirements? How should I go about? Which would be the best business in which our physical presence is not needed all the time and returns are high with less investments. My likings are some thing to start in fast food business. What cab be good business opportunities?
A. First of all, sit down and write out a business plan. State what your overall goals are, then break it down into mini goals. Have a date assigned to each mini goal; this si when you want that goal accomplished. Try and look beyond the first year of business. Also include in your business plan the startup costs (renting equipment, office space, etc), taking into account the fact that regardless of if you made money or not that week, you still have to pay your employees.
Now, figure out how this project will be funded. If it's a bank loan, what's the collateral? What're the monthly payments?
Apply for a tax ID from the state for the business. You must do this to avoid being charged for tax evasion. Also set up a bank account exclusively for the business; DO NOT have the business money deposited and withdrawn from your own personal account.
As for fast food ... it's not as easy as you think. If you start your own store, you have to have your own recipes, own prices, buy tons of equipment on your own, and advertise heavily. It can take several months for an unknown store or restaurant to gain enough popularity to start making a profit. If you choose to open a franchise, you have to apply for a license through that franchise. They expect so much money in a bank account and vested in property before they will approve you. You will have to pay some up front, and the amount paid may or may not help pay for equipment or rental locations. Some franchises are better than others. You really have to go to either the website or an existing store to ask. Also, fast food managers easily work 50, 60 hours a week. If everyone calls in sick, guess who has to work the cash register and ovens?
Now, figure out how this project will be funded. If it's a bank loan, what's the collateral? What're the monthly payments?
Apply for a tax ID from the state for the business. You must do this to avoid being charged for tax evasion. Also set up a bank account exclusively for the business; DO NOT have the business money deposited and withdrawn from your own personal account.
As for fast food ... it's not as easy as you think. If you start your own store, you have to have your own recipes, own prices, buy tons of equipment on your own, and advertise heavily. It can take several months for an unknown store or restaurant to gain enough popularity to start making a profit. If you choose to open a franchise, you have to apply for a license through that franchise. They expect so much money in a bank account and vested in property before they will approve you. You will have to pay some up front, and the amount paid may or may not help pay for equipment or rental locations. Some franchises are better than others. You really have to go to either the website or an existing store to ask. Also, fast food managers easily work 50, 60 hours a week. If everyone calls in sick, guess who has to work the cash register and ovens?
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