Building a garage

**imported_wagsjr** · 04-18-2007, 10:32 PM

Was looking into a garage to detail in on site at my house. I have a lot of property. I thought about going the business loan route but I considered a home equity. My credit is stretched a bit thin. Just not sure how business loans work.

I am defeating ghe purpose dragging everything out of my basement and doing driveway details. Got a great deal on my house and it is only 10 years old but the previous owners ran short of cash to build the garage here. Really sucks cause I have the finished basement and all.

I love detailing and it would be stictly part time, hopefully an extra 20g a year or something.

So you guys that did business loans I need some input here on which route to go. for about 30g I could excavate and attach to my house. 2 stall, 12 foot doors, drain, water, and heat.

**jimmybuffit** · 04-19-2007, 02:19 AM

Right or wrong, a banker will not look favorably upon a part time business. Your `business` would really have little in the way of tangible assets (collateral), and banks don`t like startups, in general.

I think a second on your current mortgage is the way to go. The garage is an extension and enhancement of the property. If you borrow $30k, you`ll need at least $50k in current equity, along with a decent credit score.

In this scenario, the bank will care less about your business plan.

Good Luck!

JB

**optimusp517** · 04-19-2007, 02:56 AM

I`ll be honest with you at this point. I work at a bank myself as a loan officer. Can`t say who I work for. Idea #1 with the business loan will not fly at all. I`m not sure how other institution will look at it, but if you`re going to run it out of the house and it might be a startup business I offer my customers the option of doing a home equity line you have something of collateral that the bank will be able to fall on.

My suggest is to go with the HELOC. Where do you live by the way?

**BobD** · 04-19-2007, 06:48 AM

Originally Posted by wagsjr

Was looking into a garage to detail in on site at my house. I have a lot of property. I thought about going the business loan route but I considered a home equity. My credit is stretched a bit thin. Just not sure how business loans work.

I am defeating ghe purpose dragging everything out of my basement and doing driveway details. Got a great deal on my house and it is only 10 years old but the previous owners ran short of cash to build the garage here. Really sucks cause I have the finished basement and all.

I love detailing and it would be stictly part time, hopefully an extra 20g a year or something.

So you guys that did business loans I need some input here on which route to go. for about 30g I could excavate and attach to my house. 2 stall, 12 foot doors, drain, water, and heat.

I don`t think you will get a business loan to build a garage on your own property. It would just be VERY hard if not impossible to do. Especially if you where part time and you didn`t have a legal business. They want to see proof of business and income for that business on top of everything else.

**JohnLINY** · 04-19-2007, 11:11 AM

optimusp517 is right on the money. Most banks wouldn`t give it to you as a business loan. You would have to personally guarantee the loan. If they would do it at all.

With rates where they are today a home equity line of credit (HELOC) is a great idea. More than likely rates are going to stay the same or trend lower. By adding a garage to the home you will be increasing your home`s value. Some banks may lend to you based upon the increased value of your home which may make it easier to get approved.

I don`t know what bank you have for your 1st mortgage. If you are happy with them you may want to look into refinancing your 1st mortgage and take out cash for the garage. It all depends on what rate you can get the new loan out and how long you are going to stay there if it makes sense financially.

**imported_wagsjr** · 04-19-2007, 02:27 PM

Yeah I got a great deal on the house and would like to do it part time only. I have a good job. I am 28 and have 16 years to go and get a pension and benefits for life. I figured home equity is the way to go. I could personally use the garage. I will get some insurance and be good to go here. Here in PA it is pretty easy. Insurance and tax paperwork. I already have business name. No need for permits or anything here.

It is nice to pick and choose the cars I do. I hated doing those rat traps for dealers. But they always looked 100% better no matter what you did. It is nice to be at home and just go to the garage. Thanks for the input guys.

**01SVTvert** · 04-20-2007, 03:40 AM

You dont need to be zoned commercail where you live? Expect someone to complain at some time and if you dont ahve all the right permits and licenses expect to get shut down.

Good luck

**imported_wagsjr** · 04-20-2007, 05:07 PM

Nah my neighbors see me all the time now. They are cool and always asking questions. I live in a rural area where I only have 1 neighbor on one side and woods on the other. A very unique situation, Plus I have borough support here.

**Flexin** · 04-21-2007, 11:38 AM

Originally Posted by 01SVTvert

You dont need to be zoned commercail where you live? Expect someone to complain at some time and if you dont ahve all the right permits and licenses expect to get shut down.

Good luck

Depends on the area but a lot of areas are fine if you don`t bring in a lot of traffic.

James

**imported_wagsjr** · 04-21-2007, 05:21 PM

Yeah I do 2 a week tops. My neighbors recommend people to me. We are hundreds of feet apart. It would be different if I was in an urban or suburban setting.

Thanks for the help. Home equity seems to be the way to go