I’m hoping I can get some good advice from members of this forum as to how I can proceed and actually get a bank loan. I currently fall into the category of people who 6 months ago could get bank financing without of problem, but now it’s the opposite. Let me explain my situation. A few months ago I was granted a construction loan covering purchase and repairs. The loan was to mature and balloon after six months giving me enough time to either sell the property, or hold it, refinancing out of the construction financing into something more long term or permanent A pretty typical construction loan. My biggest problem now is that I can’t get a new loan to satisfy the construction loan. What makes it most frustrating is that it’s to know fault of my own. I have never been late or defaulted on any of my loans. My credit score is above 725 and I have liquid assets. the only crimes I am guilty of is that being a investor I file self employed thus needing to go stated and I have to many properties for there liking. I have 7 total, including my personal residence and the property I’m currently seeking a permanent loan for. All my rentals and filled and cash flowing and I’m still having problems. I feel helpless to advance my business. I can purchase properties either using hard money, lines of credit or even my own cash, but still run into the problem of getting financed long term to repay the line of credit or to pull my own cash back out. Are there any loan products out there for investors like myself who are experiencing the same thing? I’m in Minnesota, but I have no problem getting a loan from out of state if there is one to be had. Here I thought the big bailout would help us small business owners keep going!
Try building your business credit and then you won’t have to worry about hard money loans etc.
7 Steps to Build Your Business Credit
- Form a business
Limited Liability Company, S-Corporation, Corporation - Obtain Federal Tax ID #
- Open separate business checking account
Most banks give 1-2 years free (no min. balance) - Obtain a DUNS #
- Establish your first 3-5 trade lines of credit that will show on your DNB business profile utilizing your DUNS #
Uline, Quill, etc - Pay the trade lines of credit ON TIME!
After the first 3-5 companies report to DNB that you pay on time, you are on your way to obtain a PAYDEX score of 80
Most of my students achieve an 80 PAYDEX score in 3-4 months - Attract companies that will offer you your first Unsecured Business Line of Credit
Most students obtain$25,000 in first 3-6 months of my program
Secured to the business with no income verification!!
Usually in the form of a Business Credit Card, Cash % rate same as APR