PDA

View Full Version : Finance / Loan Question


Nooch
30th December 2009, 22:02
Hey everyone. Alittle background first. I am 24 years old and still live at home with my family. I currently own a plant / nursery business which nets about $150,000 a year with my brother. I have currently about 50k and have a 720 credit score.

I recently saw a new shopping center being opened with about 20 store fronts. It is located on a prime piece of real estate, off a main road, with heavy traffic. It is surrounded by tons of jobs, as well as residential, I feel that my lunch crowd alone would be able to keep me in business.

I have been doing alot of research, speaking to other similar restaurant owners who are close family friends of mine and they have given me invaluable advice. After gathering information, I feel I will need about 400k to get this started. I know the bank will not lend me that, but what are some other ways do you think I can go about it? My parents do not want to "give" me the money. But they will help as far as co-signing a loan, or whatever else there is to do?(suggestions?) They are retired, and own two houses and a condo. They have no mortgage on any of them. Houses both are about 500-600k and the condo is about 300k.

I guess my question is do any of you know the best ways about going about this? Can my parents even get a loan to co-sign for that much money? If you have any suggestions or a couple of options that may be helpful I'd greatly appreciate it. Thank you and hope you all have a happy new year.

Gillie
30th December 2009, 22:15
Depends on the age of your parents as to whether the bank will chat with them about releasing money against property and how much.

Gawd, its too late at night to get my head round this one - will come back in the morning when I have thought about it.

Nooch
30th December 2009, 22:16
Parents are both in their 60's.

MASSEY
30th December 2009, 23:04
If it was me i would get them to release equity in there property as that will be cheaper than a loan. They give you the money and you give them the business and it does not become yours until you have paid them back.

But i wouldn't like to owe my parents that much :eek:.

are you in america i notice you used $ sign.?

fundingportal
5th January 2010, 10:14
Agree with the above coments; it depends how comfortable you are dragging your parents in.

The cheapest-cost (but most committed) option is to re-mortgage the properties and pay the mortgage on their behalf.

Alternatively, you can probably set up a number of smaller (but more costly) arrangments based on guarantee only, without charges on property.