Commercial loan (SBA) or residential

3 replies [Last post]
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Joined:
06/17/2018

Appraiser is telling us its commercial the property is listed both residential and commercial. Not zoned commercial, but I would rather get a 2nd home loan. Loan already approved for residential. Did you buy your Inn's or B&B'S as commercial or residential. We will be living onsite as well.

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DM

 

gillumhouse's picture
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Joined:
05/22/2008

We refinanced our Illinois house (was almost paid for) and paid cash for this house. We sold the refinanced house a year later and by that time my wonderful (sarchasm) aunt we had invited to live with us had moved out and we opened the B & B (she reverted to her normal self rather than the changling nice person we came to believe she had actually become). I now have a business loan with higher interest than could be had - just paying off rather than go through refi headache.

JimBoone's picture
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12/18/2014

Our place is/was a tiny motel in our chosen vacation area, I borrowed against our home and some rental property (from bank) to make a down payment, note (no payments on this one) to the person we purchased the business from that gave me two years to sell a piece of property and pay off the note in a lump sum, another note, larger, was financed by the original owner of the motel, on that note we had one large payment each year.

Income from rental properties paid the bank loan that was borrowed against those properties, managed to sell a property and pay off the fellow we purchased the business from within the two years, room rentals made the payments to the original motel owner, I also worked various outside jobs.

So much depends on your own vision, but there are different ways to make things work, of course I agree I was lucky or blessed and my "house of cards" held together for me.

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Jim & Maxine

 

Morticia's picture
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Joined:
05/22/2008

If it's not zoned commercial, how are you going to operate a business? Make sure that is cleared up first.

Your bank has already approved the loan as residential for a business? You're probably better off taking that than a commercial loan. Commercial loans are tied to the prime rate and fluctuate yearly.

I've got a commercial loan.

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Never judge a person's story by the chapter you walked in on.

 

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