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Real Estate, Small Business

Guide to Small Business Startup Loans

Man working on a puzzle

It takes money to make money and virtually any small business will require some startup capital to get up and running. While the personal savings of the founders is likely the most common source of startup funding, many startups also employ loans to provide seed capital. New enterprises with no established credit cannot get loans as easily from many sources, but startup loans are available for entrepreneurs who know where to look. Here are some of those places to look, plus ways to supplement loans. For help with loans and any other financial questions you have, consider working with a financial advisor.

Startup Loans: Preparing to Borrow

Before starting to look for a startup loan, the primary question for the entrepreneur is how much he or she needs to borrow. The size of the loan is a key factor in determining where funding is likely to be available. Some sources will only fund very small loans, for example, while others will only deal with borrowers seeking sizable amounts.

The founder’s personal credit history is another important element. Because the business has no previous history of operating, paying bills or borrowing money and paying it back, the likelihood of any loan is likely to hinge on the founder’s credit score. The founder is also likely to have to personally guarantee the loan, so the amount and size of personal financial resources is another factor.

Business documents that may be needed to apply include a business plan, financial projections and a description of how funds will be used.

Startup Loan Types

There are a number of ways to obtain startup loans. Here are several of them.

Personal loan – A personal loan is another way to get seed money. Using a personal loan to fund a startup could be a good idea for business owners who have good credit and don’t require a lot of money to bootstrap their operation. However, personal loans tend to carry a higher interest rate than business loans and the amount banks are willing to lend may not be enough.

Loans from friends and family – This can work for an entrepreneur who has access to well-heeled relatives and comrades. Friends and family are not likely to be as demanding as other sources of loans when it comes to credit scores. However, if a startup is unable to repay a loan from a friend or relative, the result can be a damaged relationship as well as a failed business.

Venture capitalists – While these people typically take equity positions in startups their investments are often structured as loans. Venture capitalists can provide more money than friends and family. However, they often take an active hand in managing their investments so founders may need to be ready to surrender considerable control.

SBA loan applicationGovernment-backed startup loans – These are available through programs administered by the U.S. Department of Commerce’s Small Business Administration (SBA) as well as, to a lesser degree, the Interior, Agriculture and Treasury departments. Borrowers apply for these through affiliated private financial institutions, including banks. LenderMatch is a tool startup businesses use to find these affiliated private financial institutions. Government-guaranteed loans charge lower interest rates and are easier to qualify for than non-guaranteed bank loans.

Bank loans – These are the most popular form of business funding, and they offer attractive interest rates and bankers don’t try to take control as venture investors might. However, banks are reluctant to lend to new businesses without a track record. Using a bank to finance a startup generally means taking out a personal loan, which means the owner will need a good personal credit score and be ready to put up collateral to secure approval.

Credit cards – Using credit cards to fund a new business is easy, quick and requires little paperwork. However, interest rates and penalties are high and the amount of money that can be raised is limited.

Self-funding – Rather than simply putting money into the business that he or she owns, the founder can structure the cash infusion as a loan that the business will pay back. One potential benefit of this is that interest paid to the owner for the loan can be deducted from future profits, reducing the business’s tax burden.

Alternatives to Startup Loans

Crowdfunding – This lets entrepreneurs use social media to reach large numbers of private individuals, borrowing small amounts from each to reach the critical mass required to get a new business up and running. As with friends and family, credit history isn’t likely to be a big concern. However, crowdfunding works best with businesses that have a new product that requires funding to complete design and begin production.

Nonprofits and community organizations – These groups engage in microfinancing. Getting a grant from one of these groups an option for a startup that requires a small amount, from a few hundred to a few tens of thousands of dollars. If you need more, one of the other channels is likely to be a better bet.

The Bottom Line

Green plant growing out of a jar of coinsStartup businesses seeking financing have a number of options for getting a loan. While it is often difficult for a brand-new company to get a conventional business bank loan, friends and family, venture investors, government-backed loan programs, crowdfunding, microloans and credit cards may provide solutions. The size of the loan amount and the personal credit history and financial assets of the founder are likely to be important in determining which financing channel is most appropriate.

Tips on Funding a Startup

  • If you are searching for a way to fund a business startup, consider working with an experienced financial advisor. Finding the right financial advisor who fits your needs doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors in your area in five minutes. If you’re ready to be matched with local advisors who will help you achieve your financial goals, get started now.
  • One way to minimize the challenge of getting startup funding is to take a “lean startup” approach. That approach could be especially helpful to baby boomers, who are “aging out” of their careers and living longer than earlier generations but still need (or want) an income. Learn how many of them are turning their retirement into business opportunities.

Photo credit: ©iStock.com/Andrii Yalanskyi, ©iStock.com/teekid, ©iStock.com/Thithawat_s

The post Guide to Small Business Startup Loans appeared first on SmartAsset Blog.

Source: smartasset.com

Real Estate, Small Business

Paycheck Protection Program (PPP) – Guide for Small-Business Owners

The Small Business Administration is disbursing up to $349 billion in low-interest forgivable loans to many American small businesses, freelancers, and nonprofits through the Paycheck Protection Program. Find out if you qualify and how to apply before the money runs out.

Paycheck Protection Program (PPP) – Guide for Small-Business Owners is a post from Money Crashers.

Source: moneycrashers.com

Money, Money Management, Mortgage, Real Estate

One Important Phone Call You Should Make Before You Buy A House

Any house that you buy “used” has a history to it, and that history may affect your finances. Here’s one key call you can make to check out your new home.

The post One Important Phone Call You Should Make Before You Buy A House appeared first on Bible Money Matters and was written by Melissa. Copyright © Bible Money Matters – please visit biblemoneymatters.com for more great content.

Source: biblemoneymatters.com

Roommate Tips, Unique Homes

Historic Indiana Schoolhouse From 1883 Gets an A-Plus Transformation

Fort Wayne schoolhouseTony Frantz/ DasFort Media

The room where students at District School No. 4 once learned their ABCs has been transformed into a grand living space.

On the market for $683,000, the converted schoolhouse on Aboite Center Road in Fort Wayne, IN, is now a one-of-a-kind single-family home.

“To find an intact one-room schoolhouse is hard. Then on top of that, for it to be made into this gorgeous home with a back addition? The way they did it is just incredible,” says the listing agent, Andrea Zehr.

Built in 1883 and last used as a schoolhouse in 1938, the historic structure sat empty and forlorn for decades. The current owners began renovating it in 2016, after the former owner finally agreed to sell it.

“The prior owner would not sell it unless there was someone that was going to not tear it down and do right by it,” Zehr explains. “There were definitely other people that wanted to buy it and then take it down—and he would not sell it.”

Interior of former schoolhouse in Fort Wayne, IN

Tony Frantz/ DasFort Media

Exterior

Tony Frantz/ DasFort Media

Addition

Tony Frantz/ DasFort Media

Historic photo

Tony Frantz/ DasFort Media

Before renovation

Schoolhouse owners

During renovation

Schoolhouse owners

During renovation

Schoolhouse owners

Interior

Tony Frantz/ DasFort Media

Interior

Tony Frantz/ DasFort Media

Entry

Tony Frantz/ DasFort Media

Inside, the former schoolhouse serves as an open space with areas for dining and relaxing. Where the kitchen island now stands is where the original schoolhouse structure ends—the space beyond was added by the current owners.

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Watch: Roll With It: $359K W. Virginia Property Includes a Skate Rink

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The addition to the original structure resulted in two bedrooms and two bathrooms, as well as a basement with an office and extra living space.

Kitchen

Tony Frantz/ DasFort Media

Kitchen

Tony Frantz/ DasFort Media

The kitchen features cherry cabinets, a copper farm sink, 12-foot ceilings, and floors made from wainscoting from the schoolhouse.

Hallway

Tony Frantz/ DasFort Media

Interior

Tony Frantz/ DasFort Media

Master bedroom

Tony Frantz/ DasFort Media

Master bathroom

Tony Frantz/ DasFort Media

Master bathroom

Tony Frantz/ DasFort Media

Master bedroom

Tony Frantz/ DasFort Media

Master bedroom

Tony Frantz/ DasFort Media

Bedroom

Tony Frantz/ DasFort Media

Bathroom

Tony Frantz/ DasFort Media

Bathroom

Tony Frantz/ DasFort Media

The master bedroom opens to a patio, and the master bathroom includes dual sinks, LED lights, Bluetooth speakers, and a heated towel rack.

Basement

Tony Frantz/ DasFort Media

Basement

Tony Frantz/ DasFort Media

Basement

Tony Frantz/ DasFort Media

Basement

Tony Frantz/ DasFort Media

Basement

Tony Frantz/ DasFort Media

The basement has 9-foot ceilings and a built-in sleeping area under the stairs, as well as a desk area and space for entertaining. Outside, there’s also a swim spa year-round exercise pool.

Aerial view of exercise pool

Tony Frantz/ DasFort Media

Outdoor space

Tony Frantz/ DasFort Media

The current owners make a living dismantling old barns and reclaiming the wood. They used some of that material as well as other repurposed items for this project.

“They restored everything that they could. The things they couldn’t salvage or had to replace were replaced with things that were repurposed,” Zehr explains.

For example, there’s barn wood from a 1950s barn, lighting from an old building, a door that came from an elementary school in the Iowa town where the two owners met, and much more.

Original chalkboard on display

Tony Frantz/ DasFort Media

Before renovation

Schoolhouse owners

They also gave a proper nod to the property’s past—using original chalkboards as wall decor.

“The original slate chalkboard was still there when they purchased this property. The writing on it predates 1938, when the last classes were held there, so it’s pretty special,” Zehr says.

Exterior

Tony Frantz/ DasFort Media

The exterior of the original schoolhouse is brick, with a slate roof. The addition features a metal roof and vinyl siding.

“The reason why they didn’t try to do more brick on the exterior for the addition is because it’s so hard to match. So they went with siding and a barn kind of look,” Zehr explains.

The agent noted that the addition was carefully designed to align with the slim profile of the schoolhouse, so that it didn’t look like an afterthought. It’s the same width, going straight back, and doesn’t interfere with the front view of the original structure.

Aerial view

Tony Frantz/ DasFort Media

Sadly, the school’s original bell tower was unstable and could not be salvaged.

The schoolhouse design was the work of the architect John F. Wing, a well-known Indiana architect in the late 19th and early 20th centuries. His firm designed several buildings, including the gymnasium at Purdue University and many schools.

The owners spent several years converting the schoolhouse into their home, but are ready to move on.

“I think that perfect buyer is someone that really loves and appreciates the history,” Zehr says. “It’s just a really amazing sight.”

Bathroom

Tony Frantz/ DasFort Media

Kitchen and interior space

Tony Frantz/ DasFort Media

Hallway and stairs

Tony Frantz/ DasFort Media

The post Historic Indiana Schoolhouse From 1883 Gets an A-Plus Transformation appeared first on Real Estate News & Insights | realtor.com®.

Source: realtor.com

Luxury Homes

The Home Gym Gets a Makeover

Where you work matters as much as where you work out. Like the home office, the home gym has moved from afterthought to forethought in the COVID era. Affluent homeowners are now creating workout spaces loaded with personal style. Whether it’s designing around Peloton bikes and Mirror systems or creating complete wellness suites for relaxation, the new home gym is all about you.

The post The Home Gym Gets a Makeover first appeared on Century 21®.

Source: century21.com

Luxury Homes

Beverly Park, a Privacy Haven for Hollywood’s Biggest Celebrities

Some call it a desperate need for privacy and security. Others call it conscious alienation and paranoia. Whatever the reason, one thing’s clear: the world’s wealthiest all want to live in Beverly Park, Los Angeles’ richest and most exclusive neighborhood. 

What exactly is so special about Beverly Park?, you might ask. Don’t feel bad about not knowing the answer, because the amount of privacy and security around this neighborhood is insane, and that’s exactly why celebrities want to live here. 

First of all, you can’t just go take a stroll through Beverly Park in hopes of running into Mark Wahlberg or Samuel L. Jackson (two of the biggest names on the neighborhood roster). This ua-exclusive gated community is out of reach even for paparazzis. There are basically no sidewalks, and taking photos is strictly prohibited. But who needs sidewalks when each property spans across acres and acres of land? There is plenty of room for celebrities to roam around without running into neighbors, visitors, or the prying eyes of the press. 

Aerial view of North Beverly Park
Aerial view of North Beverly Park (via Variety)

Because of the unrivaled privacy and massive land plots, Beverly Park has become the most sought-after residential destination for the wealthy. It’s actually the richest neighborhood in Los Angeles, home to A-listers in industries like show business, technology, and finance. But how did Beverly Park come to earn its status of the highest-earning neighborhood in L.A.? Let’s go back to see how this Hollywood hotspot first took shape. 

The history of Beverly Park

During the 1960s, the area now known as Beverly Park was eyed to become a country club-slash-golf-course for Hollywood’s elite. However, in the 1970s, developers Brian Adler and Elliot Gottfurcht joined forces to turn Beverly Park into “an idyllic community of historic-feeling grand estates that would feel like Beverly Hills of yesteryear.” 

Beverly Park stretches between Mulholland Drive, Sunset Boulevard, Coldwater Canyon Drive, and Beverly Glen Boulevard. It’s divided into two communities, namely South Beverly Park and North Beverly Park. They both boast the famous Beverly Hills Post Office 90210 zip code, even though they’re located in the city of Los Angeles. 

Map of Beverly Park, Los Angeles
Map of Beverly Park, Los Angeles (via Google Maps)

North Beverly Park is the larger of the two communities, encompassing 64 homes, while South Beverly Park is home to merely 16 residences. North Beverly Park is more upscale than the South section, boasting significantly higher prices and an entrance on Mulholland Drive. Interestingly enough, residents of the two communities don’t always see eye to eye, even if they’re basically part of the same neighborhood. 

In 2008, residents were embroiled in a legal battle concerning the rights of South Beverly Park to use the northern gates at Mulholland Drive. It wasn’t your usual, boring court battle: among the plaintiffs were famous residents like Samuel L. Jackson and Magic Johnson, among others. The dispute was triggered when North Beverly Park restricted access to South Beverly Park via the Mulholland Drive entrance, citing security concerns. After a long legal battle, the courts decided South Beverly residents could use the northern gates freely, but the disagreements left a sour taste for both communities. 

The North Beverly Park entry gate at 13100 Mulholland Drive
The North Beverly Park entry gate at 13100 Mulholland Drive (via Christophe Choo)

The high profile residents

You know how in some cities in the U.S., local governments impose limits on how big residences can be? Think of that stunner of a mansion featured on Netflix’s Selling Sunset. It’s reportedly the last project of its size to be built in Los Angeles, as the local council voted to regulate the size of new homes in 2017.

Believe it or not, in Beverly Park, a requirement is in place that says homes in this neighborhood must be at least 5,000 square feet in size. Nobody seems too upset about that, given that homes in Beverly Park average roughly 20,000 square feet or more. 

This 5,000-square-foot-minimum rule, which is part of a 70-page property covenant that Beverly Park residents must abide by, is by no means a problem for celebrities. ‘The bigger, the better’ is a motto that famous Beverly Park residents like Mark Wahlberg, Eddie Murphy, Magic Johnson, or Silvester Stallone swear by. 

But one of Beverly Park’s most famous residents is none other than Lisa Vanderpump, aka one of the Housewives of Beverly Hills. A few years back, Vanderpump was living in a palatial mansion designed by Richard Landry, and this mansion made multiple appearances in the popular TV show. The neighborhood is by no means stranger to massive mega-mansions, but the Vanderpump estate definitely stood out in its opulence. 

Lisa Vanderpump's former Beverly Park home
Lisa Vanderpump’s former Beverly Park home (via Pinterest)

Fast forward a couple of seasons, and Vanderpump reportedly decided to ‘downsize,’ moving to a gorgeous Beverly Hills residence dubbed Villa Rosa. Her former Beverly Park palace ended up being demolished by the new owners, but luckily we still have plenty of glamorous footage to rewatch if we get nostalgic. A bit of fun trivia for you here: the old mansion’s façade was used in the first season of Schitt’s Creek

If you’re feeling sad that your favorite housewife has parted ways with Beverly Park, worry not, because there are still plenty of celebrities in the neighborhood. Notable residents include Faith Hill and Tim McGraw, Rod Stewart, Denzel Washington, Samuel L. Jackson, and Kimora Lee Simmons, among many others. 

The priciest home in the neighborhood

All the homes in Beverly Park are massive, uber-glamorous and jam-packed with amenities and state-of-the-art security features. But there is one property that stands out from all the others, and it’s got an equally impressive price tag. Yes, we’re talking about Villa Firenze, a 20,000-square-foot, 13-bedroom estate that could become the priciest home ever to hit an auction. Rumor has it that the jaw-dropping property is hitting the auction block with a $160 million price tag, just $1 million shy of the previous record-holder, a $159 million Florida listing auctioned off in 2018.

Villa Firenze in North Beverly Park.
Villa Firenze in North Beverly Park. Image credit: Concierge Auctions

You might ask yourself, what’s so special about this residence that makes it worthy of such a high price tag? Well, besides the 13 bedrooms, 17 bathrooms and 8 powder rooms, Villa Firenze also comes with a home theater, a wine cellar, a gym, a library, a private office, and even maids’ quarters. But that’s not all. There’s also a 30-car courtyard, a tennis court, a massive swimming pool, and even a walking/jogging trail surrounding the estate! 

Bidding for Villa Firenze starts Tuesday, January 26th, and the highest bidder will become the lucky owner of this ua-luxurious property. So, if you want to compete with the likes of Denzel and the Vanderpumps, this is your chance. You can register to bid on the Concierge Auctions website. Fingers crossed!

You might also like:

10 Major Celebrities — and Celebrity Couples — Who Call Beverly Hills Home
Everything You Need to Know about Brentwood, One of LA’s Most Glamorous Neighborhoods
Check Out 10 of the Biggest Celebrities Who Live in Malibu
The Pocket-Sized Community of Montecito is Home to Some of the Biggest Celebrities (and a Couple of Royals)

The post Beverly Park, a Privacy Haven for Hollywood’s Biggest Celebrities appeared first on Fancy Pants Homes.

Source: fancypantshomes.com

Luxury Homes

Trophy Apartment Once Owned by Composer Leonard Bernstein Asks $29.5 Million

An Upper East Side apartment that was once home to one of the most significant American cultural personalities of the 20th century has recently hit the market.

The Art Deco masterpiece at 895 Park Avenue was previously owned by famed composer and cultural icon Leonard Bernstein, whom music critics refer to as “one of the most prodigiously talented and successful musicians in American history”. In fact, this very property is where Bernstein — also a lifelong humanitarian, civil rights advocate, and peace activist — hosted an infamous “radical chic” party with and in support of the Black Panther Party back in 1970.

But its famous past owner is not the building’s only historical trait; built in 1929, it is designed in the classic Art Deco style, evoking New York City’s golden age glamour and sophistication. That, paired with its carefully preserved original architectural details (original wood-burning fireplaces and wide-plank wood floors) and panoramic Manhattan views make this residence a true gem.

perfect manhattan views from luxury apartment
Image credit: Warburg Realty

Clocking in at approximately 6,300 square feet, with an extra 700 square feet of private outdoor space, the 895 Park Avenue unit spans over two floors of the 21-story Upper East Side building. The entrance is through a private elevator landing which opens into a 34-foot grand gallery, further leading into the residence’s elegant formal living room, library, and dining room.

With 6 bedrooms and 6.5 bathrooms, the trophy apartment also comes with an enclosed solarium that’s bathed in sunlight and that, just like the rest of the rooms and outdoor spaces, opens up to picture-perfect views of the city.

beautiful solarium in Manhattan apartment
Image credit: Warburg Realty
Image credit: Warburg Realty
Image credit: Warburg Realty

A grand staircase leads to the lower level, which houses the 6 bedrooms, as well as a home office and laundry room. All but one of the bedrooms enjoys their own en-suite bathroom as well as significant storage space in the form of walk-in closets or dressing rooms.

Image credit: Warburg Realty

The building itself adds an extra note of sophistication and convenience; the full-service white glove co-op has a long list of amenities, including multiple doormen, an elevator attendant, health club, squash court, basketball court, and private storage units. Though location itself may be its biggest asset: 895 Park Avenue is located right in the heart of the Upper East Side, on the southeast corner of 79th street and Park Avenue, providing direct access to world-class dining and shopping.

Priced at $29.5 million, the elegant unit is listed with Bonnie Chajet, Allison Chiaramonte, and Tania Isacoff Friedland of Warburg Realty.

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The post Trophy Apartment Once Owned by Composer Leonard Bernstein Asks $29.5 Million appeared first on Fancy Pants Homes.

Source: fancypantshomes.com