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As I will be leaving for college soon, I am looking to pool my assets into one large investment property and slow down on the car sales. Locally, I found a smoking deal on a main street with lots room, a large parking lot, etc. It's perfect for businesses of all types. There is a small telemarketing firm renting two of the lower suites right now for over what I estimated (this is where my knowledge base crumbles) would be the mortgage payment. They take up less than 1/10th of the square footage, so there is plenty of room to rent to others. All in all, it's not perfect, but it's a great location with lots of room for expansion, and it's far less than 1/2 the appraisal price.
One of my brothers and I will be going into this together 50/50. Unfortunately, I have zero credit record, and obviously cannot get a loan of practically any type. He, on the other hand, has a solid job, good income, perfect payment records, etc. He just recently started building his credit, because he conducted nearly all transactions with cash. From three separate businesses he has received scores ranging from 640 to 720 in the past 3 months, with the lowest being the most recent. He purchased a Terminator about a month ago and figured he'd get a small loan for it to help build some more credit. This was before we were considering this place, otherwise he wouldn't have done so.
He would have qualified for an excellent rate, but the property cannot be considered a homestead.
Questions: Would it be in his best interest to go ahead and pay off the Cobra? It seems like a recent loan with a balance on it affects credit in a negative manner.
What are average interest rates for commercial loans?
Assuming the worst (640-650) credit, would he qualify for a relatively small commercial loan at all? We have the paperwork filled out for the application, but I'd like to hear what others have to say with previous experience.
Will having my name on the loan application hinder the ability to qualify for decent rates, or qualify at all? I'd like to use this to build credit, but I will be using some other ways to do so in the meantime.
Thanks, DFWM!
One of my brothers and I will be going into this together 50/50. Unfortunately, I have zero credit record, and obviously cannot get a loan of practically any type. He, on the other hand, has a solid job, good income, perfect payment records, etc. He just recently started building his credit, because he conducted nearly all transactions with cash. From three separate businesses he has received scores ranging from 640 to 720 in the past 3 months, with the lowest being the most recent. He purchased a Terminator about a month ago and figured he'd get a small loan for it to help build some more credit. This was before we were considering this place, otherwise he wouldn't have done so.
He would have qualified for an excellent rate, but the property cannot be considered a homestead.
Questions: Would it be in his best interest to go ahead and pay off the Cobra? It seems like a recent loan with a balance on it affects credit in a negative manner.
What are average interest rates for commercial loans?
Assuming the worst (640-650) credit, would he qualify for a relatively small commercial loan at all? We have the paperwork filled out for the application, but I'd like to hear what others have to say with previous experience.
Will having my name on the loan application hinder the ability to qualify for decent rates, or qualify at all? I'd like to use this to build credit, but I will be using some other ways to do so in the meantime.
Thanks, DFWM!
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