Announcement

Collapse
No announcement yet.

Buying a package buiseness+house?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Buying a package buiseness+house?

    Has anyone here done it?
    How does financing work in this situation?

    Do you have to apply for separate mortage and a business loan?
    Taking out business loan to cover both?

  • #2
    Originally posted by lexapurple View Post
    Has anyone here done it?
    How does financing work in this situation?

    Do you have to apply for separate mortage and a business loan?
    Taking out business loan to cover both?
    I would think you just get a reg. home loan. If the house didn't approve for finance at the price they wanted, you'd have to put money down to cover that. Is this place a house used as a business or will this be a duel usage home?(Both personal and business use)

    Comment


    • #3
      It is a home and a shop in the backyard.

      Comment


      • #4
        I'm actually in the process of purchasing a house with a kennel or possible grooming salon on the property. You need to make sure with any place that YOU can in fact do business there, even if the past owners could.

        Any offers you make need to have a contingency clause that state you need to receive the proper zoning/permits/approval before the offer goes through. That way, you won't be stuck with a house and a business that you can't run. We're going with a traditional mortgage on everything. It was way too difficult to get a business loan when I was looking for commercial locations, and the traditional home mortgage is relativity easy to apply for in comparison.

        Comment


        • #5
          SetterGirl,
          When I refinanced my house with a grooming shop on the property, everything was cool until they found out I was running a business from the property. I didn't know it made any difference. I told them my occupation and where I worked but when they caught it, that was the end of the almost completed loan process. They were unhappy with me for not telling them and got a little irritated when I asked that my application fee be returned. They did give it back though. The next bank I went to I told them up front very clearly and they said it didn't matter.

          Comment


          • #6
            If anyone else is interested, we have a property for sale like that in arkansas. Far as I know inlaws just took out a home loan.

            Comment


            • #7
              I cannot remember, did your sale go through?

              Originally posted by SetterGirl View Post
              I'm actually in the process of purchasing a house with a kennel or possible grooming salon on the property. You need to make sure with any place that YOU can in fact do business there, even if the past owners could.

              Any offers you make need to have a contingency clause that state you need to receive the proper zoning/permits/approval before the offer goes through. That way, you won't be stuck with a house and a business that you can't run. We're going with a traditional mortgage on everything. It was way too difficult to get a business loan when I was looking for commercial locations, and the traditional home mortgage is relativity easy to apply for in comparison.

              Comment


              • #8
                We have a grooming/boarding kennel and our house on the same 20 acres. We're in the process of trying to refinance to construct an addition (1 bedroom/bath) to the 600 sq. ft. house. What a hassle! Event though there have been almost $100,000 of improvements to the house and kennel in the 8 years we have owned the property, it's market value is $50,000 less than what we paid for it originally. All I can say is do your homework, it's not easy trying to finance property with a business on it, especially a grooming and/or boarding business.

                Comment


                • #9
                  Originally posted by violet2 View Post
                  I cannot remember, did your sale go through?
                  Nope! The house we wanted didn't appraise. They wouldn't count the pole barn/business set up as worth any additional value. They took the value as the price the house was bought for and didn't count the outside business additions. We appealed. No luck.

                  Since that was factored into the price, the bank wanted the additional worth to be paid in cash up front in addition to our 20% down. We walked away and are out the money for the inspection, and appraisal and my time trying to get a salon approved.

                  I did a lot of research into zoning laws after that. Good thing my mom works for a Michigan County government. We found another place 45 minutes away that has no regulations for grooming and training home occupations and a fairly lenient kennel licensing process. There is a barn on the property with a decent build out already that won't be too bad to covert. This one has 5 acres which will be great for my training business.

                  The sellers agreed to pay the difference if this one doesn't appraise. Unfortunately, I still have to find the money to finish the build out once we move in. We have a few more things left for the bank to approve and will hopefully get it 6 September.

                  Home buying sucks. Adding a business in makes it really complicated. It's still easier than buying just a business though.

                  Comment


                  • #10
                    I know this is an old thread but this topic is interesting. I notice that some groomers selling their businesses here with their home get it done! I would think it tough, but I see some sell.

                    Comment


                    • #11
                      We bought our boarding/grooming business with house on site 12 years ago. Harder than heck to get a loan for this type of business. Luckily, the credit union we dealt with for many years was willing to take the risk. From perusing various sell sites on the internet now, it looks that financing as loosened a bit. It might be easier to finance a small business - providing the seller has kept accurate records to show profit.

                      Comment


                      • #12
                        I do most of my business now with credit unions, you get more personal consideration HANDS DOWN!

                        Comment


                        • #13
                          I sold my house with a grooming business when we had to move out of state. We got an appraisal for the home, and then added a separate appraisal for the business. The buyer had no problem getting the bank loans from both. Having appraisals was required.

                          Comment


                          • #14
                            I noticed some others have sold here too. Usually if they have the equity to buy the property they can get enough loan as needed for the business if the price is justified in the eyes of the bank.

                            Comment


                            • #15
                              We had a groomer out of town a bit sell her business and home and I suggested she put it here. I am now on her A list. LOL

                              Comment

                              Working...
                              X