I am trying to get into the self storage property business, I am like everybody else trying to start out with no money for the down payment and acquisition costs. I guess my question to the professionals out there is a business line of credit a good option to get the money needed to start my investing. I live in a rural state and don’t have many private money lenders to talk to.
Hi,
Right now business credit is extremely hard to get, I know some one who was recently able to get an SBA Loan although they had been in business for 7 years. Most banks are not lending business capital right now as it is one of the big things being complained about in regard to unemployment in this country as without growth of small business we can not turn around our unemployment rate and without capital business can't grow!
Interest rates for business capital have increased significantly which makes paying monthly payments un - effective. If you are just starting out even with good credit of say 725 mid Fico it is likely you would not get more than say $25k, most banks really want to only loan money to business entities in business over 2 years.
Let me know what state your in as I may be able to help you with some private money people?
I would suggest putting together a small group of friends and family to raise enough capital to either do a purchase with 30% down plus cost’s or to be able to start a facility on a small lot somewhere.
Good Luck,
GR