seems like a lot of rph's are pretty knowledgeable and motivated...anyone got a business on the side?
I'm looking to start a business on the side for a few reasons:
1.) make money in the long term
2.) get tax write-offs (my attorney friend makes over $140k/year and has an 8% federal effective tax rate from write-offs!)
3.) get into businesses early, so if I find a good business opportunity later in life, I can use this business as collateral/down payment
4.) get into a living situation where someone else is paying my mortgage
so far, the only thing I can find that fits most of this criteria is a mixed-used property...it has a 3br/2ba in the front house, 1br/1ba rear house, and a breakfast shop attached to it.
The breakfast shop is 1-year into a 5-year lease at $1,350/month, the rear 1br/1ba unit rents at $950/month, and the front unit is ~$1,500/month
the owner is looking for ~$450k for it
I asked bank of america for a loan, and they pretty much told me they wouldn't touch it...it's nothing they even go near since it's a multi-use property. I just asked around and was told that I'd need to get a commercial loan, and even then I'd need to already have an established business in that field (ie. already have my own breakfast shop), 20-35% down payment, and a lot of collateral (house, cars, etc.)
apparently this is a bad enough economy, that lenders just aren't giving loans...it's too much risk for them. If I already had the business it would demonstrate experience (= lower risk), I could take a lien against the business...but I don't have one.
so it doesn't make sense to me...on an RPh income ('excellent' credit rating), I could buy the whole property, just continue with the business lease leave both houses vacant and still be able to cover the business loan payments....to me that's less risk than trying to pay the loan with a breakfast shop earnings 😕 And if I do rent out the rear unit and use the income from the business, I only have to pay ~$600/month to cover the balance on the loan...dead simple when you're taking home over $5,500/month. It also has a 5-car garage in the rear I could rent for a $100/month or something.
so I told my Dad who has a small business, and he told me I'm just stupid..."where there's a will, there's a way". He has 3 paid off houses and a business...and he started out as an engineer and $10k in cash...so I need to figure out how to get financed on my own.
anyone out there got a business on the side?
how did you get financed for it besides paying cash?
I'm looking to start a business on the side for a few reasons:
1.) make money in the long term
2.) get tax write-offs (my attorney friend makes over $140k/year and has an 8% federal effective tax rate from write-offs!)
3.) get into businesses early, so if I find a good business opportunity later in life, I can use this business as collateral/down payment
4.) get into a living situation where someone else is paying my mortgage
so far, the only thing I can find that fits most of this criteria is a mixed-used property...it has a 3br/2ba in the front house, 1br/1ba rear house, and a breakfast shop attached to it.
The breakfast shop is 1-year into a 5-year lease at $1,350/month, the rear 1br/1ba unit rents at $950/month, and the front unit is ~$1,500/month
the owner is looking for ~$450k for it
I asked bank of america for a loan, and they pretty much told me they wouldn't touch it...it's nothing they even go near since it's a multi-use property. I just asked around and was told that I'd need to get a commercial loan, and even then I'd need to already have an established business in that field (ie. already have my own breakfast shop), 20-35% down payment, and a lot of collateral (house, cars, etc.)
apparently this is a bad enough economy, that lenders just aren't giving loans...it's too much risk for them. If I already had the business it would demonstrate experience (= lower risk), I could take a lien against the business...but I don't have one.
so it doesn't make sense to me...on an RPh income ('excellent' credit rating), I could buy the whole property, just continue with the business lease leave both houses vacant and still be able to cover the business loan payments....to me that's less risk than trying to pay the loan with a breakfast shop earnings 😕 And if I do rent out the rear unit and use the income from the business, I only have to pay ~$600/month to cover the balance on the loan...dead simple when you're taking home over $5,500/month. It also has a 5-car garage in the rear I could rent for a $100/month or something.
so I told my Dad who has a small business, and he told me I'm just stupid..."where there's a will, there's a way". He has 3 paid off houses and a business...and he started out as an engineer and $10k in cash...so I need to figure out how to get financed on my own.
anyone out there got a business on the side?
how did you get financed for it besides paying cash?
