jamscal
Stainless
- Joined
- Sep 8, 2004
- Location
- Louisville, KY
I have a chance to buy a steel building where a deal went bad....no it's not the usual -act now- scheme from the steel building supplier.
Lets say a $150k building I can get for $75k...engineered, drawings, insulated, many windows, bay doors and man doors... I have all the paperwork and invoices available, and the building has been stored in shipping containers for 1-2 years.
It's about 20% larger than my current leased shop, so it's a good fit.
Then of course I'll have to buy land, a slab, install plumbing and electricity.
I know I'll be in for *up to* $400k.
Local-ish business park has an acre +/- for $100k graded flat.
Question 1:
Will a SBA 504 loan be the right move?
Question 2.
Will a bank consider the value of the building at $150k, gaining me some/ a lot of built in equity?
Other considerations:
I have excellent credit. I have enough for a 10% down payment (504) for the total...probably up to 20%. I can get out of my lease rather easily I suspect.
I don't *hate* leasing but the last go-round of rent increases kind of hurt, and the quick numbers show a 20 year mortgage would be cheaper than rent.
Thanks
Lets say a $150k building I can get for $75k...engineered, drawings, insulated, many windows, bay doors and man doors... I have all the paperwork and invoices available, and the building has been stored in shipping containers for 1-2 years.
It's about 20% larger than my current leased shop, so it's a good fit.
Then of course I'll have to buy land, a slab, install plumbing and electricity.
I know I'll be in for *up to* $400k.
Local-ish business park has an acre +/- for $100k graded flat.
Question 1:
Will a SBA 504 loan be the right move?
Question 2.
Will a bank consider the value of the building at $150k, gaining me some/ a lot of built in equity?
Other considerations:
I have excellent credit. I have enough for a 10% down payment (504) for the total...probably up to 20%. I can get out of my lease rather easily I suspect.
I don't *hate* leasing but the last go-round of rent increases kind of hurt, and the quick numbers show a 20 year mortgage would be cheaper than rent.
Thanks