I have a great opportunity right now to take m y business to the next level. I recently moved to a "sleeper community" in other words there is a lot of stuff coming and happening in the near future. I have been selling real estate for 7 years now under a broker but now that I have moved there is NO real estate brokerage in the area! There are about 3 or 4 agents who live in the area but like me they work from another office located miles away. If I could get together the $ to get started I would be in a great position to dominate the market NOW before the boom starts! And it is going to boom! My personal credit has taken a beating over the years as my husband has had some serious health issues. If I can get this going it could change all that pretty quickly but getting start up cash is difficult. Any suggestions or advice would be appreciated!
2007-02-02 04:55:00 · 7 answers · asked by javajavgrl 3 in Business & Finance ➔ Small Business
Bad Credit is not always a death knell when it comes to business banking. If there is a legitimate reason why you have poor credit some lenders can look past it. Typically, health problems, divorce, etc (life events - such as a layoff) can ruin a persons credit report through no fault of their own.
Banks look at six main criteria when judging a business loan:
- Credit
- Capital
- Collateral
- Capacity
- Character
- Conditions
explained further in the following article
http://www.diybizplan.com/default.php?act=11&catid=75&id=74
The point is that there are various criteria a lender will look at when underwriting the loan. The above criteria is NOT a checklist. Most projects are week in one area or another. Lenders reduce exposure by weighting the above criteria and making adjustments. So for example...if your project is light on collateral they will require more cash down payment. Bad credit, usually means a higher interest rate and additional collateral to secure the loan.
Most importantly...be upfront about your credit issues. If you try to hide it they will find out anyway and it will make you look dishonest. Just tell them upfront...you have a great opportunity, lots of character but you have a few spots on your credit.
Additonally, the best day to start repairing your credit is TODAY! Don't wait because your most recent credit history is the most important. If you show that the last X months were current (paid on time) then it becomes easier to overlook the old blemishes on your report.
Finally, on NPR last weekend they spoke of a site called http://www.prosper.com where everyday people lend to other people with bad credit by pooling together funds to invest in your project. For sure it will be high interest rate (up to 29.99%) but if you can't get it anywhere else....
Good Luck
Mr BizPlan
PS - Here are some other articles on financing a business:
http://www.diybizplan.com/default.php?act=3&catid=75
2007-02-04 16:30:12 · answer #1 · answered by MrBizPlan 2 · 0⤊ 1⤋
Do you have a broker's license? That would be a good start.
Without much info about your situation, I recommend the following:
Start a corporation with the other agents. If you have the broker's license and they have money, then you all contribute something of value. With other owners of the corporation, you can get credit. A corporation is like another person itself. You will get all kinds of offers for credit.
I must say though, health issues don't normally impact your credit score. So your financial situation was probably not well before he had medical problems.
2007-02-02 05:06:14 · answer #2 · answered by g g 3 · 0⤊ 0⤋
The way most small business owners finance their new enterprise is to first pay off all of their bills, then work long and hard and save up the money.
That is because most starting businesses are cash only anyhow.
As a rule, doing this takes 4-5 years, and you should have 20 thousand or more in savings, on top of having all your recurring bills taken care of.
Because the first year in business is so harsh, that just the interest rate on a loan provides yet another great challenge most new business owners don't need.
2007-02-02 05:20:55 · answer #3 · answered by netthiefx 5 · 0⤊ 1⤋
I wonder why you need more money to start up your real estate broker business. Register your company does not cost you so much. What you have to worry is to obtain the licence.
If you are considering rent an office, i suggest you shall start up your company from your home first. What you need to buy is a reliable handphone, a fax machine, a digital camera and a computer (I think you should have one). All this won cost you more than $2k. Why you need more money?
2007-02-02 06:38:25 · answer #4 · answered by TCL 1 · 1⤊ 0⤋
You should go to a small hometown bank or a credit union with your plans and apply. They will give you a loan way before a big corperate bank will.
2007-02-02 08:26:05 · answer #5 · answered by granchelli1 1 · 0⤊ 1⤋
properly u can attempt ur success attempt writing a blog in case you have been fortunate and sufficient sensible- incredible then possibly -possibly you have some p.c. threat to be picked up by a sturdy company
2016-10-16 11:10:45 · answer #6 · answered by ? 4 · 0⤊ 0⤋
By working your fingers on your capital, take as much part-time jobs as you can to grow income to invest.
2007-02-02 05:03:12 · answer #7 · answered by Lil' Gay Monster 7 · 0⤊ 0⤋