About Jim D. Ray Expertise Jim Ray is coordinator of a regional venture capital network, serving entrepreneurs and investors seeking funding relationships. Ray is an experienced entrepreneur and is presently involved in the operations of several business concepts, including a national commercial real estate company and a web design firm. Areas of expertise include the overall startup funding process; writing venture capital proposals; and win-win exit strategies for existing private funding relationships.
Expert: Jim D. Ray Date: 1/4/2006 Subject: Funding realestate, w/o colatteral
Question I am a 28 year old man. I have studied for many years the realestate, franchise, and small business genre. I have been self taught, and only have an Associates Degree in General Studies. My question is how does one go about getting help with a business, when one has no family, possesions(Except a 25'X100' lot I bought at a tax foreclosure sale that is only worth $1800 and is a useless city partial lot) for collateral. I have talked to the Small Business admin. locally and state, and they couldn't even tell me where to get help writing a grant. I can't get a loan, and am not an eloquent speaker as I am handicapped. I have talked to my case manager at Mich. Rehab. and he keeps sending me to stupid job clubs. I can't get a job and hold it, because my symptoms cause me to lose my job. Trust me I'd gladly live on a $1000 month. I want any job. $600 isn't enough to buy a cup to pee anywhere. I know alot about realestate, and how to flip properties. We have countless victorian houses in my area, many being rehabbed by contractors. I know I could run a franchise of any kind, which is another interset of mine. NO, one will lend me money with no colateral and bad credit. I have had to use credit just to eat! Help me please. If you talked to me you would see I am percfectly able minded. People always are impressed with my knowledge. They just can't help. I have an auction on ebay that is my last ditch effort. Look under gift certificates, $25,$100,$500 then read.
Answer Sunday, January 08, 2005
4:30 PM CDT
Hello, Blaine:
Excellent question! Let's get right to it:
To begin, your disability must not be a factor in your determination to obtain a loan. There are many laws in place to ensure disabled parties can obtain loans, and it disheartens me to hear you are having difficulty finding a lender. Creditworthiness is a key factor in the decision making process of all lenders, however even this can be overcome through creative financing.
Grants are oftentimes geared toward minorities (women, ethnic groups, etc.) and therefore are usually difficult to obtain. Though SBA does not directly lend money, they can guarantee loans, if your loan request is denied by a lender but meets the guarantee program criteria.
Does your real estate have equity from which you can borrow against? If so, this may be a temporary source of cash, however I don't recommend this unless you have a very strong long-term strategy in place for those funds. Once the cash is disbursed, you will still have the loan payment to consider. Always remember to think long term!
Your auction idea sounds unique, and I encourage you to think of other ways to expand that service. Why not offer gift certificates for other products and services? What about partnering with national, or even local brands? The thing to remember is that there is far more possibility than failure in your situation. Let nothing stand in the way of your success.
Blaine, I hope this information helps point you in the right direction. Should you think of other questions or need further guidance, please feel welcome to write me again anytime.
