I have no mortgage. I want to borrow on my house to start a businees . Is this good sense?

Probably better to get a different kind of loan, like a small business loan. Putting your house up for a risky venture could be disastrous.

That is a great way to start a business. Getting a SBA loan is very tough and takes forever. The advantage of take a home mortgage is that you'll pay much lower interest rates as opposed to getting a SBA loan. I would suggest perhaps getting a 30 year fixed mortgage because the interest rates are still very good. Business loans are not flexable and usually carry very stiff prepayment penalties.

Taking out a mortgage loan on your house to buy or start a business is very common practice. I've refinanced at least seven customers within the last year who have used the money to invest in a business. They would all tell you it is a wise decision. Feel free to email me at info@adpsac.com for more information.

Yes this is one the BEST Financial Tools YOU have. You need to look at your Mortgage as a Financial Tool. Not as a Monthly Bill. YOU can get a 1.25% to 1.95% Interest Rate. That's cheap MONEY. PUT YOUR money to work for YOU. How can you do this? Buy another house. Open an Off-Shore account earn 18% SAFE interest and up or Start a Business.

I recommend that YOU do some research. Set a-side FUNDS for 18 months worth of Mortgage payments that way YOU CAN concentrate on your business. It takes one to three YEARS to establish a BUSINESS Venture. AND always, always be looking for other avenues for Credit Lines, Business Credit, Credit Cards.

Remember YOU are going into a business. (An entity to provide cashflow) thatâ€™s it. So YOU need to know, PREPARE to get out. You need an exit strategy. Read some of Ric Eddelmanâ€™s, Books. Go to his Web-Site www.riceddleman.com He is one of the best financial consultants. Over 2.6 Billion under management.

Remember. Cash is KING. Not a house!!! A hose is a liability in cashflow terms. You have to pay Taxes, Insurance, electric water etc. These ARE expenses on a p/L sheet. Cash is King!!!!!! Get the biggest and the longest term. You can always walk away form it. But the cash is in the bank.

Just be very careful how you use the cash. Always PLAN. Have you written a BiZ Plan?? Do your Homework!!!!!! It takes six months of pre-work to get started. You can contact me to further discuss this matter. Yes, I do, do Mortgages. But I love the start-up business. Business Credit in another avenue. Increase your credit lines on your credit cards. People have gone into business just by using their credit cards. Hope this helps. No matter what. Do do YOUR homework first.

Yes this is one the BEST Financial tools YOU have. You need to look a your Mortgage as a Financial Tool. Not as a Monthly Bill. YOU can get a 1.25% to 1.95% Interest Rate. That's cheap MONEY. PUT YOUR money to work for YOU. How can you do this. Buy another house, start a Business, Open an Off-Shore account earn 18% SAFE interest and up. I recommend that YOU do some research. Set a-side funds for 18 months worth of Mortgage payments that way YOU concern trat on your business. It takes one to three YEARS to establish a BUSINESS Venture. AND always be looking for other avenues for Credit Lines, Business Cedit Credit Cards. Remember YOU are going into a business. So YOU need to know, PREPARE to get out. You need an exit strategies. Read some of Ric Eddlemans, Books. Go to his Web-Site riceddleman.com He is one of the best financial consultants. Remember. Cash is KING. Not a house!!!
Just be very careful how you use it. Always PLAN. Have you written a BiZ Plan?? Do your Homework!!!!!! It take six months of prep-work to get started. You can contact me to further discuss this matter. Yes, I do do Mortgages. But I love the start-up business.

If this is the only way you can raise enough money to start this business, then go ahead and do it. What amount do you want or need to borrower? I would not exceed 50% LTV or less for this adventure.

Try and do it with the salary or income you have now and not depend on expected income from the business you want to start. I am not saying that you will not be successful in your business adventure,but all odds are against you. Facts are most new business fail before a year is up.

The primary reasons businessess fail is because the owner does not advertise and depends on his friends and relatives to spread the business by word of mouth.

When you enter your business,make sure you make a good business plan and above all have a tremendous marketing plan and stick to your marketing plan. You need to get your business before the public.

Now about the mortgage you want to get for this start up business. Get 1 months pay stubs and W-2's from all that will be on the new mortgage, 2 years of fed income tax returns, 6 months bank statements from all your checking and banking account to include your 401k at your present job.

After gathering those documents contact a mortgage "Broker" about getting a loan on your property. Tell your "Broker" that the funds from the loan will be used for an investment. He will get a credit report, schedule an appraiser to appraise your property, you will need to pay for the appraiser when he knock on your front door. When the credit check is complete your "Broker" will be able to tell you the type loan you will be qualified for, the interest rate, monthly payments and other important information about your new mortgage.

After you and the "Broker" has agreed on the loan amount, the monthly payments, terms, and other things he will inform you if there might be additional documentations necessary to complete the loan application, this is normal, don't get bent all out of shape, just do it.

Just remember that you will be required to pay this debt even if your business fail. So think and make the correct decision for yourself. Good luck in your business.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Might be. Beforehand, I would talk with some lender about a business loan, so you have some honest opinions about your businesss plan. If your plan isn't ready and legitimate yet, starting any business is a bad idea.

But if you've got things together, then a second on the house is a great way to get started (and might help secure a business loan as a bonus!)

I did and I have a successful re-modeling business.

It is good sense to make sure that you get the loan that is going to satisfy your goals in addition to making sure that you can afford the loan regardless of the success of the business.

It is certainly an option, but you have to be willing to put your house up as collateral. Are you confident enough in the potential success in your business to risk losing your house over it? Good luck in either case!

well, you gotta do serious marketing research. if your business flops, you might've to say bye to your house.

This is NEVER a good decision. Your house is free and clear - please DO NOT jeopardize this. Please go to the bank and ask for a "small business loan for a first time owner". The bank should be able to help you out, especially seeing as how you have a house free and clear. When all else fails, at the end of the day, you'll always still have your house to come home to. If you borrow against it, and lose the business, the bank will insist on the complete payment of the loan, thus taking your house. Right now you have everything, please don't lose it. Once your house is gone, there is no turning back.

Absolutely...just be sure to get into a good program. Try to stay clear of interest only unless your looking at a quick turn around on your business. I just borrowed against my house for money to put down on another property (investment) I will only be in the loan for about a year (in this case interest only is the smart choice) but if your going to go with a long term loan then go fixed/principle and interest payments.

Good Luck

Can you build and sustain a successful business?

I started my business by borrowing against my home. The best decision I ever made. The interest rate was substantially less than getting a business loan. If you have the equity use it to your benefit. I will say that the business your planning to start should be well thought out and planned. You see it really doesn't matter where you borrow the money from. All that matters is if the business is going to fail or succeed. Because that's what's going to have to make the payments.

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