| Posted by: sc Nov 4 2004, 04:35 PM |
Hi,
I would like to know - how commercial loans work. I am planning to purchase a board and care facility, (a residential home that has been licensed/converted to care for 6 or more elderly clients) I need to know - for example - The asking price is $800,000.00 - the house is appraised at $750,000.00 and the buisness is estimated at $50,000.00. Does a lien go on the business/home and I have to put up a 10% or 20% down payment or does the lien go against my personal home? Or is there another option? Please explain and advise me.
Thank you.
Sc |
| Posted by: loanuniverse Nov 4 2004, 07:52 PM |
The real estate will be financed separately, and will require at least a 20% down payment. The $50,000 for the business would have to be financed by itself.
Some thoughts.
1- Read this article about someone asking for financing a similar facility financing ALF article
2- There is very little chance that you will get financing for either portion. Since I published that article, I have had the opportunity to look at a similar deal that brought up a point that I had missed {a lender would not want to foreclose on an assisted living facility} There is too much liability involved.
3- Loans on real estate are secured with a mortgage.
4- Loans on businesses are secured with a UCC lien.
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