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    3 Replies Latest reply on Apr 18, 2009 9:58 AM by letrado

    Use of a 2nd Lien to Start a Business

    letrado Newbie
      I am trying to gather enough funds to start a business in Brazil. I own a rental property in Pennsylvania. I would like to finance the purchase of the equipment for my business by placing a 2nd lien on my property in PA. The property is worth $200,000. I owe $150,000 on the mortgage. Will it be possible for me to get a loan secured by my equity to purchase equipment for a business in a foreign country? If so, who might finance such a deal?

      Thanks.
        • Re: Use of a 2nd Lien to Start a Business
          LUCKIEST Guide
          Use of a 2nd Lien to Start a Business, Welcome

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          • Re: Use of a 2nd Lien to Start a Business
            phanio Pioneer
            Yes, but not as a second lien. You can re-finance and take cash out for your equity - but, the lender would require a 1st position lien.

            You could also just find an equipment lender and not worry about the equity in your property. Lots of equipment lenders out there that only help finance equipment - it is what they know and they are good at it.

            Business Money Today
              • Re: Use of a 2nd Lien to Start a Business
                letrado Newbie
                Thank you for your reply. I did contact an equipment lender and he told me that he simply could not put a lien on equipment that would be purchased out of the US. Then I suggested that the equipment lender could put a lien on my rental property but he told me that he was sorry but he could not help me out. Any other suggestions? Do you know any equipment lenders that might be willing to do this? I could always finance the equipment here in Brazil, but the problem is the terms are terrible--ten months is the financing term and the rates are high.

                Maybe a HELOC is my best option.

                Thanks again for your help!