Should I Sell My House to Support a Business’ Venture?
Chasing your dreams has never been easy and ambitious entrepreneurs do anything to achieve theirs. Many people think that selling your house to support a business is crazy but without financial sacrifices, a company won’t succeed.
Let’s explore two scenarios in which selling your house is a good idea to scale your business.
Capital Intensive Business
Banks don’t understand your business idea as you do and they require assets as collateral. When applying for a business loan, institutions request a business plan, which includes financial projections. However, most of the time projections are pointless since it’s easier for an operating company to get the loan.
Banks focused too much on the risk and not on the business’ potential. Therefore, you’ll be required to pay higher interest rates and fees to compensate for the uncertainty. Besides, the process is stressful and time-consuming.
Here’s a list of some steps you have to follow when applying to a business loan:
- Get Familiar Your Finances
First, you have to review your credit history and be aware that your credit score will always be part of the equation. If you already know that you have bad credit, banks aren’t the ideal option.
- Understand the Options
There are many types of business loans available with different terms and conditions. Moreover, you can choose between a local bank or an online loan. Keep in mind that any of these options demand a business plan, financial projections, proof of ownership, and so on.
- Think as a Lender
Every lender has different criteria but there are common factors to consider, such as your credit score, potential annual revenue, business industry, and profitability.
Avoid Stressful & Time-Consuming Processes
As you have read above, applying for a business loan is a long process and there are many factors to consider. It can take several months for a loan to be approved and time is money. So, instead of going through a stressful process that doesn’t guarantee any cash in the short-term, think about selling your home.
Many young entrepreneurs have decided to take advantage of this opportunity and in the meantime, they moved back to their parent’s house. Moreover, you could invest 60% of the money in the business and 40% on a low-priced property.
The Property Gained Value
Commonly, real estate is an appreciating asset. Therefore, it’s a smart idea to invest in properties and getting approved for a mortgage loan is easier. So, entrepreneurs are purchasing homes to sell them at a higher price.
Let’s explore some of the steps you could follow when searching for a top-notch property.
Buy a Property in a Good Location
Location is key when buying a property. So, choose a well-know neighborhood with nearby schools, grocery stores, and restaurants. .
Add Value
Renovations are essential when adding value to a property. Here are some project’s ideas:
- Update or Add bathrooms
- Remodel the Kitchen
- Add a Fresh Coat of Paint
- Renovate Outdoor Spaces
Maximize your Negotiation Skills
This is the most important step of all and you have to be prepared for any type of potential buyers. You could even enroll in an online course to improve your negotiation skills. Remember that how you talk, walk, and behave makes an impact on your clients.
If you already owned a house, you could start by renovating key spaces, such as the kitchen, living room and bathrooms. It’s advised to hire a deep cleaning company and organize everything.
Otherwise, if you think that the selling process is time-consuming, you could contact a home buying company. They purchase houses in their current state, therefore no major repairs are needed.
Sell My Home Today
Entrepreneurs ambition and commitment is admirable and dreams aren’t achieved from one day to another. You have to work hard and make smart decisions. Sell your home today by getting in touch with a home buying company.
If you’re located in Colorado Springs, contact Colorado Cash for Keys. We buy houses and provide win-win solutions to help homeowners achieve their dreams and avoid financial hardship. The process is simple, just fill out a quick survey on our website and we’ll contact you in the next few days to schedule an appointment.
Once the home visit is completed, we’ll let you know our offer within 24 hours. If you accept, you can have cash in hand in just seven days. Your business’ venture is worth it, don’t let someone’s else’s idea get into your head and sell your house fast in Colorado Springs. Call us and build the company of your dreams today.