- Co-Founder and Growth Evangelist at Big Red's Equipment Sales
- Dallas/Fort Worth Area
- Certifications: EETC
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10% of the net profit will probably sink the business, unless it’s a service business that isn’t selling products. Most retail businesses are doing well to net 3-5%.
That said, usually, a repayment structure is principal and interest, or interest-only for a time.
Depending on cash-flow, the payments could be principal-only, with interest being accrued, to be repaid later. Lots of creative ways to structure that.
Usually, at least in the small business world, they charge by the hour, and a higher rate on nights and weekends.
Your local business bank should offer an interim construction loan. I have done these with a local community bank before. Very simple. They will appraise the property with the assumption that repairs are made. You purchase the property for one sum, then make draws on the construction portion, and the bank sends inspectors to make sure the funds are going into the repairs. Works brilliantly!
If Google Plus were to make a strong comeback. 🙂