Log in

View Full Version : Looking for Financial Advice



PSS
04-14-2016, 20:59
Not going to a long drawn out post on my financial situation but here's a brief summary.

I've had bad spending habits most of my life. 6 years ago I hit rock bottom and went through a drastic change. More or less quit spending money except on absolute necessities and the rare relapses. Was able to get completely out of debt. Opportunity started knocking and ended up starting another business. My original contracting business has taken the back seat. The problem is I made some big mistakes. At this point I have about 50% equity in this business (I owe 50% of what the business appraises for). I've got here by insane hard work not brains. Now I'm in a bind. I've expanded this business crazy fast. I bought land April 27 and built all the buildings myself. In the process I made a mess of my financial records and am in the process of getting that straightened out (commingling of accounts). I'm letting an accountant take over book keeping and she's got that straightened out. My problem now is this. I have good revenue stream. It's a type of business that it's very stable and predictable. I have guaranteed money coming in for the foreseeable future. I have some lingering costs of construction (overruns) that need to be addressed immediately. My banker is reluctant to do anything right away because of the book keeping a mess and the fact I didn't keep the business accounts separate. He wants to wait 6 months before he will do anything so the new business can establish itself. I would like to borrow up to 70% of the business value to pay off the overruns and finish up around buildings. (Dirtwork, concrete aprons in front of buildings, crap loads of gravel and some limited landscaping). The slightly over due construction costs need taken care of immediately.

Some numbers.

Appraised value of business and real estate. 1,400,000
Loans 705,000
Monthly Loan payment 7,392
Monthly gross income 31,200
Monthly expenses 11-13,000
I've invested about 220k of my own money.
I need to raise approximately 150k quickly and would like to put another 150k in equipment and such over the next year. So what I'm looking for is a financial adviser that can help me accomplish this goal. My biggest hurdle is overcoming my past history and somehow convincing a bank that this is real. 3 years ago I was able to land some lucrative jobs and found myself in the ludicrous situation of having cash to buy a new truck but yet the bank not willing to finance. I was able to finance this project by going out of state for it and tons of sweat equity but I'm running into the same problem of my ambition outrunning my ability. I've talked to a few financial advisers but they acted like they wanted to help people plan for retirement not what I was facing. So not sure why put that here other than there appears to be men here who might know who offers such a service. And I have no clue who to turn to for advice.

Credit score is around 700 and have only about 30k in personal debt. Soon to be 0.

Any suggestions?

Wulf202
04-14-2016, 21:27
Take on an investor or switch to hard money for the mortgage? Possibly tale on a second mortgage

Irving
04-14-2016, 21:36
ChunkMunky may be able to point you in the right direction.

CO Hugh
04-15-2016, 09:10
Take on an investor or switch to hard money for the mortgage? Possibly tale on a second mortgage


I represent hard money lenders, however, they remind me of this scene in Goodfellas: (Eventually they burn down restaurant)


https://youtu.be/ZPtjyqgZAUk

Guylee
04-15-2016, 17:55
trade in the FOREX. you'll be a millionaire in no time!

PSS
04-16-2016, 11:21
What kind of terms is typical for hard money loans?

I'm thinking about refinancing the project with a different bank. Some people will have to wait for their money until that goes through. Just not sure what kind of shit they can put me in. I already am communicating with all of them.

Irving
04-16-2016, 11:29
What kind of terms is typical for hard money loans?

I'm thinking about refinancing the project with a different bank. Some people will have to wait for their money until that goes through. Just not sure what kind of shit they can put me in. I already am communicating with all of them.

I want to say 30 - 120 days, but of course it will depend on the lender and situation. That might be a misleading estimate on my part, but I wouldn't expect terms comparable to a bank.

Firehaus
04-16-2016, 12:10
If you have the necessary cash flow and want to pay like 20% interest and some closing costs, you can try places like ondeck. A year term with auto withdrawal 5 days a week for a year.

It's a last resort kind of a deal I wouldn't really recommend it, unless it's your only choice to keep the doors open on your business.


Sent from my iPhone using Tapatalk

Irving
04-16-2016, 12:24
Might try Lending Club, but I don't know if they have options for that level of funding.

asmo
04-16-2016, 19:57
My banker is reluctant to do anything right away because of the book keeping a mess and the fact I didn't keep the business accounts separate.

I'm out..

Your going to have a hell of a time trying to find anyone to loan you the cash (or even invest at a palatable level) when the books aren't in solid shape.

PSS
04-16-2016, 20:20
We're working with a CPA and have turned everything over to them. For the next three months they are doing everything from depositing money to writing the checks and after that point they will start turning certain things over to us. They will do all the book keeping for the foreseeable future.By the end of next week everything will be accounted for and easier to see what went on. It's not a total disaster. After panicking the last couple days I'm starting to see options. Yesterday had meetings with the people we had overdue accounts and they gave us some breathing room. We'll see how the rest of the month goes.

Wulf202
04-16-2016, 21:37
FYI I've had the same issues with financial advisors. There's better advice here than when I paid several hundred dollars to teach the college educated idiots about rentals and get asked for advice by the end of it...