Tagged: startup funding
August 1, 2017 at 5:24 pm #94430
A big thank you to everyone who attended the Best Startup Funding Option webinar! You should have seen an email from us with a link to the promised materials, but please let me know if you haven’t received them.
We covered a lot of ground in the short amount of time we had together, but I’m sure some of you have additional questions. Please feel free to use this forum thread to ask those questions now. I will reply to you ASAP so you have all the info you need to find the right funding option for your startup.
Thank you again, and good luck with your new venture!August 3, 2017 at 6:20 pm #94910
did not receive email.August 3, 2017 at 7:23 pm #94936
The emails have now gone out. If you still haven’t received an email, please make sure it’s not in your junk folder. And if you still haven’t received it at all then please reach out to Jason and he can get you setup correctly.
JeffAugust 3, 2017 at 8:31 pm #94917
Question: What about investors who support a start-up as limited partners in a Limited Partnership?
Is this a viable funding source?
Another: I know this webinar wasn’t about real estate, but do you address seller financing in other
webinars or venues?
Brian MillerAugust 3, 2017 at 8:31 pm #94901
Do you have any non-recourse options?August 3, 2017 at 8:32 pm #94900
Is there a big difference in APR in a HELOC vs HEL? This is probably going to be my best option for the small amount of financing I’d need.August 3, 2017 at 8:42 pm #94952
I think that a limited partnership is one way that you could structure others putting money into a business, such as friends or family. Limited partnerships are generally reserved for businesses like law firms and CPA firms because they can all share in the profits, but then have a single managing partner in charge of all the day-to-day operations. Savvy investors, like angel investors, likely won’t go for this type of structure because they will want more say in the operations of the business.
We have an article on seller financing, although it doesn’t directly relate to real estate. It should still be helpful for your understanding on how it works to buy a business, and if you want to get seller financing for real estate then the background information is very similar.
JeffAugust 3, 2017 at 8:49 pm #94954
Of course! A ROBS is non-recourse because it’s not a loan. If you have $50K+ in your retirement account, and are interested, we’ll be holding a webinar specifically on ROBS later this month.
Any money that is invested as equity, such as from venture capital or angel investors, is also going to be non-recourse, because it too is not a loan.
As far as loans go, you could negotiate a loan from your friend or family member that is non-recourse, and your equipment lease is often non-recourse, because the equipment itself is being used as collateral. Not all equipment loans are non-recourse, though. If you’re an established business, or have a strong banking relationship, then there are business loans available from conventional banks that might be non-recourse as well.
JeffAugust 3, 2017 at 9:01 pm #94956
Good to see you in the forum! A Home Equity Line of Credit (HELOC) has the potential to be a little bit cheaper than a Home Equity Loan (HEL). A HEL will generally have additional closing costs, and the HELOC has the potential to have interest rates as low as 2.5%, if you get approved for a larger credit limit. This is compared to the HEL that typically ranges from 4-8% in interest plus 2-5% closing costs.
You can check out our comparison between the HELOC and HEL in our article on the two, and these costs are discussed in more detail.