In a proud tradition...

[mfree]

...of going at everything backwards, I'm hatching schemes.

This time, it's of small business. What will I do? I've got no freakin' idea. Well, some idea... traditional prototyping and repair parts replication. Essentially someone would come to me with an idea or a machine drawing and I'm make the part, or someone would show up with, say, a cracked sleeve valve from a 1920's Willys-Knight and I'd produce a new one (for large sums of money).

But the what lit this off was spotting a commercial property that's not but 2 miles from home, nearly 5000 sq ft for only $45K. I drive by the darned place every day, it looks run down on the front but it's an old brick building that looks fairly solid. I'm itching to figure out how to buy it, with no plan whatsoever. It's one of those gut instinct kinds of things... a 30 year fixed on it at 7% would be $300 a month. *twitch*

I've really got to get a handle on these urges. Or do I really have my eye on something here?

[lupinus]

I've been toying with an idea for a home based business for some time.

The way I look at it is I do not have higher education, I was never much fond of school and don't have the money for college so I likely wont be getting it either.  And given that most industries are now requiring a degree to move up into management I figure that unless something happens to me very soon I am screwed.  Even where I work now, Walgreens, while not policy it is hard to move into management without a degree and without a degree the highest you can go is Store manager and even then it is hard.  In five or six years when I'd be likely to get my own store if things were on track it will be even more difficult to get a store of my own without a degree.  And even then while it is nice I'm not so sure I want to spend my life rearranging shelves and putting up with stupid corporate programs and policies.  I swear with some of the stupid crap walgreens has I don't know sometimes how they are the top pharmacy in America.

My basic plan is simple.  Start a business part time out of my home, build my contacts and some experience running the business, go through the time building up a customer base and what not, and then when I have a high enough demand to make a push and grow quit my day job and move full time to my business.

What exact business?  I am still toying with a few ideas.  I'm not one of those people who wont be happy if I'm not rich, enough money to be comfortable and I will be happy enough.

[BozemanMT]

...

But the what lit this off was spotting a commercial property that's not but 2 miles from home, nearly 5000 sq ft for only $45K. I drive by the darned place every day, it looks run down on the front but it's an old brick building that looks fairly solid. I'm itching to figure out how to buy it, with no plan whatsoever. It's one of those gut instinct kinds of things... a 30 year fixed on it at 7% would be $300 a month. *twitch*

I've really got to get a handle on these urges. Or do I really have my eye on something here?

dunno about the rest, but Commercial Property doesn't lend at the same rates or time frame as residential primary property.
And of course, ti's worse, because people will make their home payments long after they stop paying for their business.

Much more down, higher rates, shorter time frames.
usually taxes are WAY higher on commerical properties too.
just FYI

[lupinus]

I do know the fealing of having the idea and having a new one the same day lol

my mind just goes off to the weirdist places

[Polishrifleman]

There are a lot of different lending options for commercial property from traditional lenders to the SBA.  As mentioned before the rates are a little different and the loan term is shorter but the amortization period can go out as far as 30yrs.

On something at that price you might be better off taking out a equtiy line of credit from your bank at 15yrs or something.

Steps you should take are to:

Get a title report this will detail leins, encumbrances, owners, easements, etc...

Get a phase one survey, this details the past historical uses of the property keeping you from inheriting a toxic landfill, gas station or the like.  If that comes back with some questions you can get a phase 2 done, more thourough more expensive.

Get an inspection, on a building that size you should be able to hire a regular house inspector for the job unless you are in an earthquake prone area then you might want to go for a structural engineer on a brick building.

Get an appraisal or do reasearch into sales of like kind properties in your area.  Pull the tax records this will give you a ton of information.

When borrowing commercially understand pre-payment and balloon payment structures.  As mentioned the loan term will usually be between 5 and 10 years with the actual loan payment ammortized over 20yrs so you will have to refinance.

Good luck and if you want more information I am glad to share.  I have been in the commercial real estate industry in Seattle for 12yrs.

[mfree]

i'm abandoning the idea, I have my hands full enough with my current job(s) and trying to prepare for doubling the size of my own house.

Eyes bigger than the stomach, if y'know what I mean...