Oky my wife bought a restaurant way out in the country made 180,000 gross last year. She found a location in the center of town which will increase business income greatly.
our credit is not good at all. we own all the equipment. falling short on come capital to get last steps of restaurant open in new location. tried to take equity out of our home and no one would (banks) because of credit scores. home value 118,000 loan balance 69000.00 only wanting 10 to 15k out of equity in home. was told to go ask for a hard money lender cant seem to get any reply for one can anyone tell me what to do need help or restaurant will not get opened back up
Hi,
Your current debt to FMV is good and you should have no problem borrowing $14k at 70% LTV.
In the left hand column of this website is “Investor Resources” and the very first link below it is “Hard Money Lenders”. Start contacting from this list, since we don’t know what state and county / city / town your in it’s hard to help further!
Good luck,
GR
Hi,
You might run a local ad looking for an investor to borrow $14k from at 70% of FMV at say 8% and see what happens?
If you were inclined to take on a partner you might advertise looking for investor partner for $20k for a say 20% interest in one of your restaurants?
I hope your keeping and continuing to operate both locations?
GR
Have you tried crowd funding? I’ve never done it but I think it might be a possible avenue for you. Do a search for best crowd funding platforms I gathered several of them this way but can not make recommendations in the forum.
Hi,
The problem with crowd funding is you have to prepare documents, you have to register your offering with the powers that be, you have to wait some period of time for potential investors to commit to your plan and you are still going to give up equity or have this debt.
Most crowd funding sites and look at state laws are set up to go after the state’s maximum capital raise, no company wants to prepare documents and pay the cost of those legal and regulatory cost’s for a $14k capital raise. Depending on what state your in a crowd funding campaign may not be available as roughly 40% of US states have not approved a crowd funding law and don’t as of yet allow crowd funding.
GR
There are companies out there who will lend the money based on your equipment collateral. Just google equipment collateral loans. I’ve never had experience using one before, but I am sure it is the same concept that is used in real estate.