I am kind of confused so i need some advice
2006-11-27 13:59:53 · 9 answers · asked by thundercat 2 in Business & Finance ➔ Small Business
Investing in a business that you love can effect your judgment as to the quality of the investment (believe me I know). Your better off going for your first house and getting a real asset on your sheet.
2006-11-27 14:10:40 · answer #1 · answered by joe 2 · 0⤊ 0⤋
You never invest in a business just because you love that business. You need to research the business, have a business plan, I would recommend a Business Education major as running a business is not a piece of cake, and if at all possible investigate the business that you love that is already up and running in some area of the country. Make a personal visit to that business; it is well worth the money that you will spend. The failure rate for a business is between 80 to 85% so going into business is a huge decision.
Now back to your original question. Purchase your home first. There is plenty of time to purchase a business.
2006-11-27 22:19:41 · answer #2 · answered by Camera man 1 · 0⤊ 0⤋
Well, Whats the LTV (loan to value) of the home. What are you using for a down payment? What is the ARV (After Repaired Value) of the home? What type of business are you going into? Whats your experience with this business? Have you been in the same job and or same line of work for 2 years or more? (relates to getting a mortgage). I would say the home first, then the business, just because you would be changing your work status from employee to employer. My advice. Talk to your realtor, gauge the market a little. find a house thats been on the market for more than 90 days. buy it, at 65-70 ltv. with a good arv. find a hard money lender, fix it up, sell it, take the money you make from the sale, less taxes, invest in your business, and go find a house that you want to live in. ....There,....now you can have both.
2006-11-27 22:27:18 · answer #3 · answered by Rob M 2 · 0⤊ 0⤋
Ever watch the Godfather movie?
They always purchased the home first.......as it would probably take from 5 to 10 years to make a good business work........unless you're a great computer geek...who has financing.
And, they always kept the home private from investment....no home equity loans...just a mortgage....no taking money out of the primary home for business.
Business - is very expensive especially medical insurance costs from $600 to $1200 per peron per month...please don't believe me, get your own quotes.
Then there's the business insurance.
Then there's the business expense.
And remember benefits are provided by any career choice...except if you work for yourself.
A home is a great investment.....it keeps you going...when you question your sanity ...at any job.
2006-11-27 22:10:03 · answer #4 · answered by May I help You? 6 · 0⤊ 0⤋
Home first, then business.Plus owning a home can help with a business loan.
2006-11-27 22:02:15 · answer #5 · answered by Anonymous · 0⤊ 0⤋
If the business is successful you will have plenty of opportunity to buy a house. Think long term.
2006-11-27 22:22:37 · answer #6 · answered by Anonymous · 0⤊ 0⤋
I would purchase my business first bcecause i need some money to progress in my career so that is much better.
2006-11-27 22:08:21 · answer #7 · answered by ╦╩╔╩╦ O.J. ╔╩╦╠═ 6 · 1⤊ 0⤋
The home, then the business.
Having a mortgage gives you a lot of clout with a bank.
2006-11-27 22:05:54 · answer #8 · answered by Anonymous · 0⤊ 0⤋
buy the business, once you have your own business you won't have time to take care of the house anyway
2006-11-28 01:16:01 · answer #9 · answered by justcurious 5 · 0⤊ 0⤋