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Sell house or get home equity loan to finance business

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Money Talk > Credit & Loans

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gtmoflorida
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Sell house or get home equity loan to finance business  Reply with quote  

My wife and I will have our home paid off by the time we move back to the states in 25 months. Right now we live on an overseas military base. We expect our home to be worth over $250,000 by the time we have it paid off. We plan on starting some type of franchise for around $200,000. Should we sell our house and use the money to finance the business and put a down paymnet on a new house? Or, should we keep our PAID OFF house and take out a home equity loan? Thank You for you advise
Post Sat Jul 09, 2005 2:39 pm
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Ellis
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Re: Sell house or get home equity loan to finance business  Reply with quote  

quote:
Originally posted by gtmoflorida
My wife and I will have our home paid off by the time we move back to the states in 25 months. Right now we live on an overseas military base. We expect our home to be worth over $250,000 by the time we have it paid off. We plan on starting some type of franchise for around $200,000. Should we sell our house and use the money to finance the business and put a down paymnet on a new house? Or, should we keep our PAID OFF house and take out a home equity loan? Thank You for you advise


If I was in your shoes, I would keep the house and take out a VA loan. If you are not in the military then contact your local SBA office.

Keeping the house is going to give you alot more options and flexibility then if you were to cash out on it. Not to mention if you do end up in financial trouble, you could then always get a home equity line of credit very easily to help you through bad times if the business was to do bad. Not to mention you wouldnt be paying rent or mortgage which would be very nice for someone in your situation.

Another option could be selling the home and keeping part of it for emergency and the rest for your business and what ever you still need to get your business started, you would just get a sba backed loan.
Post Tue Aug 23, 2005 3:38 pm
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grantchen
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You'd better keep the house and take out a home equity loan or a home equity line of credit against it. Please be reminded that you'd better keep a good credit so that you can get lower interest rate easily.
Post Fri Aug 26, 2005 5:28 pm
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ferrorolvans
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I have a home equity loan and I am a little confused about making additional payments on it.Including the appraisal fee, the lender's attorney's fee, the prorated taxes, the filing fee, the survey charge, insurance, and about half a dozen other fees.
Post Fri Jun 11, 2010 11:58 am
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Social Media
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I would never risk my home to start a business which is what you'd be doing if you sold it and used the money for your startup.

Keep the home. Find some other way to raise the money for a franchise.
Post Sat Jun 12, 2010 2:26 am
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littleroc02us
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Never risk your home for a business startup, because if it fails (70% of new businesses do), then they will take your house to cover the expense. I would either sell your house and rent and use the money to start up the business or save up the cash.

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Mon Jun 14, 2010 1:22 pm
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ed2009
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That post is back in 2005, he probably already lost so much money from that house becaucse of the housing bubble.
quote:
Originally posted by littleroc02us
Never risk your home for a business startup, because if it fails (70% of new businesses do), then they will take your house to cover the expense. I would either sell your house and rent and use the money to start up the business or save up the cash.


Insurance Life Insurance Good Insurance
Cash Loan
Post Mon Jun 14, 2010 4:57 pm
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littleroc02us
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I should have checked the date. Whoops. I wonder what happened?

Risk comes from not knowing what you're doing. (Warren Buffet)
Post Mon Jun 14, 2010 6:19 pm
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pwsolutions
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We should keep talking whatever the date of post is.
Post Wed Jun 16, 2010 2:56 pm
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pwscs
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quote:
Originally posted by littleroc02us
I should have checked the date. Whoops. I wonder what happened?


doesn't matter. not the person who created this thread but many other people would read this and get help.
Post Wed Jul 07, 2010 10:50 am
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pwsolutions
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i think littleroc02us has left the forum
Post Sat Jul 17, 2010 9:31 pm
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kingion10
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I sens a little risk in selling a house for a business. It's true, you could earn a lot, but you could lose a lot as well. In this kind of situations you should consider consulting an expert, he will advise you the best. Good luck!
Post Fri Jul 23, 2010 6:29 am
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