I will try to make this as short as possible. My Aunt is trying to open a small, 3,000 sf, dollar store operation.
She has the space, the contract with landlord has been signed, and she has occupancy of the space. Work has started (painting, etc.) and she has secured the fixtures, equipment, etc.
Unfortunately, her bank (Washington Mutual), without any prior notification, reduced her business credit line, and credit card, by less than half, both of which she was planning on using to purchase initial inventory, equipment, and provide her with a few months of working capital while the store gets rooted.
Her credit is not that good, although it had been in the mid 700's back in May, due to several credit cards that she had been using during the search for appropriate space within which to open this store. That search took much longer than she anticipated.
She has some equity in her home, and is the trustee of the trust left to her by her Father who recently passed away. The trust consists of a Home (two flat) that, until the market problems was valued at over $464,000. The home has a loan balance of just short of $150,000 which is being paid off interest only.
Is it possible for her to be able to re-finance this debt and consolidate it along with the additional funding she needs to get this business up and running, approx. 60,000? Both units are currently rented, one bringing in $900/mth and the other $1,150/mth with 12 months leases that renew automatically unless either party gives 60 days notice, or the renters do not adhere to the lease terms, etc.
If she can do this, what would the best avenue for her to go down to get this done, local banks, on line mortgage companies??
Thank you for any help you can provide.
She has the space, the contract with landlord has been signed, and she has occupancy of the space. Work has started (painting, etc.) and she has secured the fixtures, equipment, etc.
Unfortunately, her bank (Washington Mutual), without any prior notification, reduced her business credit line, and credit card, by less than half, both of which she was planning on using to purchase initial inventory, equipment, and provide her with a few months of working capital while the store gets rooted.
Her credit is not that good, although it had been in the mid 700's back in May, due to several credit cards that she had been using during the search for appropriate space within which to open this store. That search took much longer than she anticipated.
She has some equity in her home, and is the trustee of the trust left to her by her Father who recently passed away. The trust consists of a Home (two flat) that, until the market problems was valued at over $464,000. The home has a loan balance of just short of $150,000 which is being paid off interest only.
Is it possible for her to be able to re-finance this debt and consolidate it along with the additional funding she needs to get this business up and running, approx. 60,000? Both units are currently rented, one bringing in $900/mth and the other $1,150/mth with 12 months leases that renew automatically unless either party gives 60 days notice, or the renters do not adhere to the lease terms, etc.
If she can do this, what would the best avenue for her to go down to get this done, local banks, on line mortgage companies??
Thank you for any help you can provide.
