goldenfab
Cast Iron
- Joined
- May 25, 2016
- Location
- USA Prescott , Arizona
I have a single member LLC and work out of my garage in a residential neighborhood doing prototype machine work as well as design work. I am outgrowing my garage so I bought 4 acres in a rural area to build a new house for my family and a detached shop for my business. I had planned to get a construction loan for the whole project. Plan is to do the building myself. After applying with a few banks and seeing how many hoops I have to jump through and not being able to qualify for the amount of the full project without selling my current house I am looking at alternatives. If I sell my house and live in a 5th wheel I think I can qualify for an unsecured personal loan for enough to build the house but not the shop. After the house is done I could then finance the house with a conventional mortgage and pull out enough money to build the shop.
Or... could I get a business loan to build the shop? The lot is zoned residential and its primary purpose would be for the house and me living there. I have talked to zoning and they are ok with me having a house/home business as long as no signs or increased traffic etc. If a lender is willing to loan my business the money are there any issues or things to be aware of using it to build a shop on my residential property. Assuming I got a business loan the business would not have the cash flow initially to make the payments so I would essentially make the payments from personal money.
Or... could I get a business loan to build the shop? The lot is zoned residential and its primary purpose would be for the house and me living there. I have talked to zoning and they are ok with me having a house/home business as long as no signs or increased traffic etc. If a lender is willing to loan my business the money are there any issues or things to be aware of using it to build a shop on my residential property. Assuming I got a business loan the business would not have the cash flow initially to make the payments so I would essentially make the payments from personal money.