My husband and I are looking for some advice. We want to opena daycare business near our home in NJ. We have found a building about 10,000 sq ft, asking price $900,000. There will be some work that needs to be done about 100,000 and then of course we will need to buy equipment and have some working capital. My husband will continue to work his full time job that pretty much will pay the household bills. I will be the director of the daycare center. I have worked in the field for 8 years from being a teacher to management. I left to have a baby and now want to work for myself.
We have excellent credit in the upper 700's and my parents are willing to co-sign the loan. They have a successful business where there assests are over $1 million. We also own a house and have equity of about 100,000
Right now the building is too big for what we want to do but it does have a tenant that will be paying $3000 a month to rent half of the building for 2 years. So the other half we will turn into the daycare for about 70 children and then expand to 150 children after the tenants leave.
Our questions are: We have been working with a peron from SCORE to help write a business plan and were told that the 20% down for the loan could be collateral instead of cash down, is that true?
Also, with a start up business is it possible to get a mortage for the building and then a start up loan for the equipment and everything else?
Thanks for your help!