Small commercial loan
Posted 14 September 2004 - 11:00 AM
Thanks for any help you can provide.
Posted 14 September 2004 - 12:26 PM
Edited by loanuniverse, 14 September 2004 - 12:29 PM.
Posted 14 September 2004 - 12:32 PM
Since you are going to be living in the property, have you thought of a residential loan?
The problem at approaching this from a commercial loan standpoint is that the source of repayment would be the cash flow from operations of a startup that probably does not even have a business plan with projections in place.
I would think of doing this as a residential loan first and only move into commercial financing when is needed.
Posted 18 September 2004 - 04:09 PM
Not to discourage you but Restaurants are tough. They have the highest rate of failure and you really have to know what you are doin in addition to having restaurant experience. My suggestion is to buy the property as a mixed use investment property (since that is what this sounds like). You will get the highest LTV and conserve your cash. You can either lease it to a retail tennant or should you continue with your dream of a restaurant, lease it to yourself and include the the restaurant rent an an expense (your accountant can expand on that). Biggest advantage is tha If your decide to get out of the business later, you will be able to lease the location to someone else.
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