Board Topic: Commercial vs Residential
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Commercial vs Residential

Posted by: Tim Apr 29 2004, 09:35 AM
I plan to start a business which would require a large warehouse. For many reasons I believe putting an apartment in the warehouse would be very beneficial. What are the requirements on getting a loan for something such as this? From what I have researched it sounds as if a commercial loan would be necessary. Are there any type of loans with breaks for first time purchasers such as there are for residential loans? Would the Small Business Administration be a good place to start? What qualifies as a small business? And also, what about zoning?

Thanks for any response to my many questions!

Posted by: loanuniverse Apr 29 2004, 05:53 PM
Tim:

I plan to start a business which would require a large warehouse. For many reasons I believe putting an apartment in the warehouse would be very beneficial. What are the requirements on getting a loan for something such as this? Most commercial banks will not finance startups without the guarantee of the SBA. I rarely get to see this kind of financing since the lender will just turn down the prospective borrower without taking it to the credit department. Of the ones that I have seen, I think only one of them got approved and was categorized as a "guarantor dependent loan", which translates into "A person with great wealth was starting a small business and the lender relied on his personal financial condition and income to do the loan.

If you are going to look for this type of financing, you will need a business plan.

From what I have researched it sounds as if a commercial loan would be necessary. Are there any type of loans with breaks for first time purchasers such as there are for residential loans? Residential lending is a whole different world. A commercial loan such as this would be repaid from the operational cash flow. There are a lot of reasons why there are breaks for fist time home buyers.

Would the Small Business Administration be a good place to start? What qualifies as a small business? That would be the best place. They have a definition of small business on their website. Also check out SCORE {an organization that provides help to small business owners}

SBA Web Site
SCORE web site

And also, what about zoning? I can't help you there. It doesn't get more local than zoning.

Good luck, hope this helps

Posted by: Guest Apr 30 2004, 08:12 AM
Thank you so much for the information!
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