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Question
How does a mortgage for a business work?
I'm thinking of opening a business and as I am writing the plan, I want to consider buying the location vs. leasing or renting it. Anyone knows how to obtain a business mortgage? What is involved? Money down, financing, interest, longest term on the loan? etc.... Very likely won't try to buy a place that costs more than $90,000 if I find one. Any pointers/resources on how that works will be appreciated. Thanks!
2 months ago - 4 answers
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Chosen by Asker
first is it a sole proprietor, a partnership, a corporation, LLC, etc. this will have a lot to do with it. if it is a sole p then it will go by your credit even though you may have a tax id # if its a partnership it will go by both ppls credit. if its a corporation it will go by the corporation and the way that it is set up. you will want to try to establish some type of credit for the business, cell phone, lights, small credit card etc. you will have to establish a well planned out business plan to get a loan and it has to be for at least 5 years, it has to have supplies, employees, employees pay, the competition, the way you will advertise, etc. you may need money down, if you are a minority you may be eligible for a grant or a special loan, you may want to rent a cheap building to see first and then get into a building.
by tlduncanj
2 months ago
Asker's Rating: 
Other Answers
You would talk to someone who deals in commercial lending. Some of the independent banks in your area will probably be your best bet. It that doesn't pan out then talk to the bigger banks.
by Lisa L- 2 months ago
If this is a start up business and you will be newly self employed, your chances of getting a loan for the business are minimal. I would suggest planning to rent. Even if you could get a loan for a commercial property, you would need 20% down or more and the rates are going to be high or else you will get an ARM that will introduce uncertainty that you probably won't want. Good luck with the new business.
by Dale H- 2 months ago
Hi, that's a great question. I know of this site that helped me a while back with questions surrounding real estate and mortages etc. Give it a look, maybe it can help you as well. therena ...
by afiesha s- 2 months ago