I have a small automotive business which finance my trading screw ups . ( joking) . Any way the landlord asked me if i am interested in buying the building . I havent check out the financing but figure i need about $100,000 as a downpayment and expenses. I have about $50k . I have a few friends and family i would like to invest . I have a good reputation and credit with equity in my house. How do i get some one to invest say $25 K or $50k without owning a part of the building . I want to say repay them at a high interest rate using say my house a colatoral . My plan down the line is to sell my business in 3 years and rent out the building and use the money from the sale of the business to pay off some of the building mortage. Owning the building i think increases the value of the business name i think . Any creative ideas out there i can offer an investor?
I would try to find out why he wants to sell. Maybe you can work out a deal that solves his problem and gives you control of the property (buying at favorable terms; leasing; option to but etc...) I had a friend that showed me the way to make money in commercial RE is to CONTROL it, you don't have to own it to do that. A lease with very favorable terms has market value too.
He is retiring and leaving alot of his properties to his kids but wanted to get some cash out . This is one of his smallest buildings .Plus also i am sure it hard now to sell any property now . It would be convienient for him , no real estate agent fees or needing to fix up building.
In that case he would probably be happy just to have some income. Make him an offer with no down payment. If he wants cash instead of income, you could always make the interest rate a little higher than market, then he could sell the mortgage for cash to an investor. http://www.google.com/search?source...rlz=1T4ADBR_enUS232US232&q=cash+for+contracts
when you say own any part of the building are you referring to them being on title with you as owner? reason, there are many ways to accomplish the above. if they are friends and family you can simply give them a promissory note which would include terms and conditions. some may wish to have this registered as a 2nd/3rd mortgage after you have closed the transaction. If your home has the equity you state you should be able to have most financial Institutions bridge finance you and use both your home and the new location as collateral for the funds. You may be able to just get the owner to take back part a small second mortgage (know as a vendor take back mortgage)which is very normal in the industry especially commercial. You can do an agreement for sale. Any have decent lawyer can put you situation to bed for a few dollars as most of what you need is a boiler plate or template. If you pm me more information I'd be glad to give you a pretty simple scenario that if all parties are really looking to make the deal work, it will. w