Yes, I got the initial approval from my broker and the banker who he is working with. According to my broker, we are waiting for the loan committee and the underwriting department for the final approval (Thats the word I got yesterday and I thing its not a quick process).
I should find out today if everything is a "go" or if there are other conditions/requirements needed. Regardless of what happens, I am working with CCC and I should get a min. 75k of cash credit lines in about 45-60days. I am ready to sign the lease so hopefully everything goes well.
Hi Lee, sounds like an interesting idea and you are clearly committed. However, two points to consider.
Do you really want to offer personal guarantees to potential investors - friends/family/banks maybe, but to people you dont really know?
Secondly 10% is attractive when rates are at 3%. However, presently an investor can get 5% on funds in the bank or if they invest outside the US can often get 8-9% in markets such as Australia with little risk. So you need to remember the relationship between risk and return on any investment. Higher the risk, higher the return required to take that risk.
When i invest in small or startup businesses I am looking for capital growth over time to maximise the turn on my original investment and an exit strategy. I know the risks going in, else I wouldnt be investing, therefore the business model and its potential growth is the key.
Food for thought.
yes.. hopefully. The SBA loan is taking forever. They wanted my fingerprints, then they wanted a letter from the court about my misdeanor. the court wouldnt issue a statement...so on so on... so I dont even know what is going to happen with that. But hopefully this business line of credit works out for me.