Should I get a house to get a home equity loan for a business? Can you get the home equity loan while paying the house?

Thanks for all the info I received! Asked by iamfoolicious 56 months ago Similar Questions: house home equity loan business paying Recent Questions About: house home equity loan business paying Business > Financial Services.

Similar Questions: house home equity loan business paying Recent Questions About: house home equity loan business paying.

To get a home equity loan, the house- will have to be worth a lot more than you paid for it. If you want to sart a business, you should go to your bank and apply for a business loan. Having a good credit rating is one of the most important things.

Also, the type of business you are going into, also needs to be a good type of investment for the lender. You really need to talk to a business loan officer at a bank of your choosing. Also, if you need to purchase a building for your business, it can be used as colaterall to guarantee the loan.

You won't be able to borrow $120,000 unless you have something of value to back up the loan. My husband and I bought a drycleaning building and place to live all in one, back in 1960. I think we paid $1,800.00 for it at that time.

Then about 1 year later, we went to our bank and got a loan for $18,000.00 to purchase new drycleaning equipment and put in an apartment upstairs over our drycleaning plant. One thing that helped us to get a loan, was that our little town did not have a drycleaners. And the bank really wanted our type of business in their town.

So , 17 yrs later we sold our business and equipment and kept the building and my husband being a carpenter built another 2 bedroom apt. Downstairs where our cleaners use to be. When all was said and done, our 2 apt.

Home is now worth about $120,000.00 actually we all have to start somewhere, and if you have good credit, a good business ventor, and a good bank to do business with, I don't see why you can't start your own business. Good luck, brownie p.s. Needless to say that I am a senior , consquently, I have had a few years experience.

Sorry, no. Equity is how much value there is on your house that you have paid off. So if you had that home for a while and owed $100k, you could possibly get a home equity loan for the $20k.

However, it’s not really a good idea to let someone else own 100% of your house if you can avoid it. For an excellent write up on this, see this website: bankrate.com/brm/green/loan/basics1-1a.asp They do have personal lines of credit and other ways to finance a business startup. Check with your bank's website to see what they offer their customers to start.

Sorry, but it doesn't work that way. A "Home Equity Loan" is a loan on the equity you have in your home. Equity is the portion of your home that is paid off.

If you get a 120K mortgage to buy your 120K home then none of your home is paid off so there is no equity in the home. If you had a home that was paid off, you could get a home equity loan for the the value of the home. If you owe 80K on the mortgage of a home that is worth 120K then you can get a loadn for the 40K of equity in the home.

OK...so here’s the second part of your question. Where do you borrow money to start a business? Answer: DON’T DO IT.

Although there are ways to borrow money to start a business, it is not a good idea. Start-up companies go bankrupt so often and it is usually because their businesses didn’t take off like they had planned or they didn’t realize how expensive it can be to get up and running. I have been in business for more than 8 years now and I never would have made it if I had borrowed my start-up money.

It is hard to get going in business and it is even harder when you start deep in the red. If you have a really good idea then consider getting a partner. There are many venture capitalists out there willing to invest in good business plans if they think it will make them some money.

Some of them can even give you advice on how to start your business properly. In my case, I found a job that didn’t take all of my time but would still pay the bills while I slowly built up my business. Eventually, when it looked like the business might be able to sustain my family, I left the other job and started working full-time at my business.

Even doing that, it was still a lot of work and a lot of unexpected expenses. There is a business cliche that says, "Don’t expect to be profitable until you have been in business for five years. " In my experience, that is the truth.

I managed to keep things running for the first five years but in my second year of business, the recession began and I watched a lot of other companies go under. I had quite a few lean months myself but I didn’t give up. Owning your own business is a lot of hard work and you have to deal with the good and bad as it comes.

Don’t believe those horrible commercials on TV that make it sound easy to just start up and make lots of money. Now that I’ve talked about the bad stuff...I love owning my company. I can’t imagine having a more rewarding job.

It may be a lot of work but I enjoy what I do. If you think you have a business idea that will work then figure out how you can build it into something that will. There are three books by Kenneth Blanchard that may help your business to be a success.

I found them very helpful when I was just starting out. I’ve linked them below. Good luck!

Tomdei's Recommendations Raving Fans: A Revolutionary Approach To Customer Service Amazon List Price: $21.95 Used from: $1.47 Average Customer Rating: 4.0 out of 5 (based on 105 reviews) This one teaches the value of customer service. Tomdei's Recommendations Gung Ho! Turn On the People in Any Organization Amazon List Price: $20.00 Used from: $0.94 Average Customer Rating: 4.5 out of 5 (based on 100 reviews) This one teaches you how to get employees motivated and excited about the business.

Tomdei's Recommendations Big Bucks! Amazon List Price: $20.00 Used from: $0.01 Average Customer Rating: 4.5 out of 5 (based on 16 reviews) This one helps you understand that it is possible to have real success doing something you are passionate about.

That's really not a good idea If you get your capital that way, you are really risking your home and your buisness. Not to mention that fact that the intrest will kill you. The best way to get the money is through a small buisness loan.

A good place to start is the small buisness administration: sba.gov/" rel="nofollow">sba.gov/ Sources: sba.gov/" rel="nofollow">sba.gov/ shangrilarcadia's Recommendations Accounting and Finance for Small Buisness Made Easy (Entrepreneur Made Easy) Amazon List Price: $19.95 Used from: $4.16 Average Customer Rating: 5.0 out of 5 (based on 1 reviews) .

1 GlacierDragon, regarding your answer "Sorry, no. ": But you can pay salaries with a line of credit? .

GlacierDragon, regarding your answer "Sorry, no. ": But you can pay salaries with a line of credit?

" "Our business failed in and now we are personally paying back the bus. Loan, can we still deduct the int. On our taxes?

" "Is $100 better off paying a 5% home loan or better off putting in a bank with 5% interest rate? " "Did you know that the House Financial Services Committee is voting on the Credit Cardholders Bill of Rights" "Could I get a new home loan if I already have a home with an equity loan of $45,000?

What are the best home equity options when there is no mortgage on home.

Can they take your car for not paying a unsecured loan.

Our business failed in and now we are personally paying back the bus. Loan, can we still deduct the int. On our taxes?

Did you know that the House Financial Services Committee is voting on the Credit Cardholders Bill of Rights.

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