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geokills
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Registered: 05/08/01
Posts: 23,417
Loc: city of angels
Last seen: 11 minutes, 50 seconds
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Yes, if you own your home and have equity (i.e. the home is valued more than any unpaid mortgage you may have), just hop into your local bank and ask about a Home Equity Line of Credit aka HELOC. You will of course have to provide ownership and any mortgage related paperwork to the bank in order to obtain the loan, but you won't need that on your first visit if you just want to know about the product they offer and the current rate structure. Might want to ask around at a few different banks, as I have historically seen low promotional introductory rates on HELOC's for a limited time period before the rates reset to market value, and that can be a big advantage especially now that rates are creeping up.
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loladoreen


Registered: 05/25/20
Posts: 5,325
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Re: Business start up [Re: geokills]
#28132176 - 01/09/23 12:47 PM (1 year, 18 days ago) |
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Quote:
geokills said: Yes, if you own your home and have equity (i.e. the home is valued more than any unpaid mortgage you may have), just hop into your local bank and ask about a Home Equity Line of Credit aka HELOC. You will of course have to provide ownership and any mortgage related paperwork to the bank in order to obtain the loan, but you won't need that on your first visit if you just want to know about the product they offer and the current rate structure. Might want to ask around at a few different banks, as I have historically seen low promotional introductory rates on HELOC's for a limited time period before the rates reset to market value, and that can be a big advantage especially now that rates are creeping up.
Am I able to do that if I don't have a mortgage? I own it outright. No mortgage.
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“One doesn’t have to operate with great malice to do great harm. The absence of empathy and understanding are sufficient.”
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geokills
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Registered: 05/08/01
Posts: 23,417
Loc: city of angels
Last seen: 11 minutes, 50 seconds
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Of course. A mortgage is debt against your home. Equity is the value of your home you own, less any debt. If you don't have a mortgage or other lien on the property, you own 100% of the equity and can use it as secured collateral for a cash loan. Go to the bank, they will explain their offer. Because you are securing their loan with your home equity, you don't need to worry about making a pitch for your business to convince them how viable it is, since if you default on the loan, they know they will have rights to your home for recourse.
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loladoreen


Registered: 05/25/20
Posts: 5,325
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Re: Business start up [Re: geokills]
#28132394 - 01/09/23 03:31 PM (1 year, 18 days ago) |
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Is that wise since I only need 12K?
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“One doesn’t have to operate with great malice to do great harm. The absence of empathy and understanding are sufficient.”
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geokills
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Registered: 05/08/01
Posts: 23,417
Loc: city of angels
Last seen: 11 minutes, 50 seconds
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HELOC's are typically used for smaller amounts and shorter term use of credit, yes, I think it's fine if you are confident in your business plan and don't have any alternative funding sources. Also, I believe it would be highly unlikely that the bank would attempt to take your home over a $12K default, if you absolutely couldn't pay back the loan. More likely, you would rack up penalties and a lien would be placed on your property, which could then ultimately be repaid if/when you sold the property if you don't settle it sooner. If you are late on payments or end up defaulting, those situations would negatively impact your credit report immediately.
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glanmit
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Registered: 02/01/23
Posts: 54
Last seen: 7 hours, 46 minutes
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Re: Business start up [Re: loladoreen] 1
#28198593 - 02/22/23 03:05 AM (10 months, 30 days ago) |
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Do you have a business plan already ? Who is going to be responsible for the marketing in your company or do you plan to do everything by yourself only? From my extended experience in business I can highly recommend using microsoft teams sms in order to stay in touch with the customers instead of more traditional e-mails or calls. And of course if you are not sure about some of the decisions you make, be brave to talk to people and ask for a professional advices. One person can't be perfect in everything and that's absolutely normal.
Edited by glanmit (02/27/23 02:51 AM)
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loladoreen


Registered: 05/25/20
Posts: 5,325
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Re: Business start up [Re: glanmit]
#28199799 - 02/22/23 07:57 PM (10 months, 29 days ago) |
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No I did more research and I am not going to commit to it. Right now
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“One doesn’t have to operate with great malice to do great harm. The absence of empathy and understanding are sufficient.”
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