Small Business Loans With Bad Credit

Jenny asks…

I want to start a vacation rental business and I need help!!?

I dont know where to start. I have a great idea to start a small vacation rental with the option of very limited personal use… I can buy a condo on South Beach in Miami on Ocean Ave. Estimated cost 300-400K. I think a 500K business loan would be enough. Or maybe a mortgage. I dont have any collateral. My only income is day trading, and on top of that I am basically broke since I could not find a job after college, and in some credit card debt from moving and not working for a few months. I have a college degree in Economics. I live in NYC so my personal rent expenses are high. 1500/mo just for rent.

The truth is that if if I charge the regular rate of hotels in South Beach, $400 a night.. I only need about 1000 nights to cover the cost of the condo alone. That would be 3 years if I booked every night so lets say 10 years WORST case scenario. Most mortgages can be 20-40 years leaving me plenty of breathing room to be profitable. I have the marketing tools available to rent this condo out plus South Beach is filled with INTERNATIONAL tourist money.. I NEED HELP on how i can get this done!

admin answers:

While you may want to start with a South Beach vacation rental, you may find it more reasonable to start with a property closer to where you live. This would give you the opportunity to build equity plus gain valuable experience before committing $400k or more to a project so far away. (That’s if you can get the financing). Remember in addition to the cost of the condo you will have a great number of ongoing expenses if you decide to offer a VR. You’ll have taxes, insurance, assessments, management fees, utilities, marketing and maintenance. I would recommend you spend more time making a detailed projection of both revenue and expenses.

There are some good resources available in print. Check out the authors Christine Karpinski and Alfred and Emily Grossberger.

Daniel asks…

Why did people go for the Joe the Plumber gimmick in the first place?

I understand the whole story of the innocent guy playing with his kid wanting to ask Obama why he is going to punish him for his success of buying a plumbing company and Obama using the phrase “spread the wealth”, which sounds somewhat similar to “re-distribution of wealth”.

My confusion is that George W. Bush is not a socialist (at least he only gives to the rich), yet with the tanking economy, it is harder now than in the last 20 years to start a small business or survive as one.

In other words, the most conservative president since Reagan presides over an economy that is unfriendly to anyone who wants to start a small businesses b/c they won’t be able to get any of the necessary loans or credit.

It seems that people want to speculate that Obama’s policies would be bad for all of small businesses, yet while overlooking Bush’s policies, which have been detrimental.

Greg: the big 3 automakers are going out of business fast b/c they can’t get loans.

admin answers:

So, you’re saying that George Bush…with his TAX CUTS for businesses and everyone else mind you is worse because you can’t get a loan.

Hey, guess what? If you can’t afford the loan, you don’t need to get it. You need to work and save up so you can then afford the loan. It’s no different than these people that complain they can’t afford a closing attorney to buy a house. If you can’t afford a closing attorney, you can’t afford the loan!

So Obama’s plan for TAXING businesses and everyone else is better? Ok…Hey look at what Reagan did with the economy. 20 MILLION JOBS created…unemployment rate went down fast…inflation rate dropped….interest rate dropped…economy boomed. Then Clinton enjoyed it in the 90′s. Yeah, it took a little more than 24 hours to kick in you dolts.

Take a simple economics course. Maybe then you’ll learn that you don’t get jobs from poor people. Have you ever got a job from a poor person? If so, this person needs to be congratulated on being a super wizard at mathematics. Obama wants to build from the bottom “trickle up?”. Yeah, ok….”Hey the economy is horrible, let me go get a job from these poor people over here”. Makes absolutely no sense.

It’s clear that people like you will absolutely IGNORE what has been proven to work in this country. We look back over 20 years ago and you cannot argue that Reagans economic plan worked. Better than Jimmy Carters? YOU BET. So here we are…and people still want to deny it. That to me is incredible stupidity. Not ignorance…stupidity…because you are so tangled up in your own party you wil never admit the facts that are in front of your face.

Read, learn…stop playing Xbox…and with yourself.

Helen asks…

I cannot get a checking account because of ChexSystems and I need to pay bills. HELP!!!?

A few years ago (when I was young and careless), I ruined my credit and also landed myself on the infamous “ChexSystems” because of some overdraft fees from my old bank. I’m currently working on restoring my credit and paying of my debts but in the meantime I do not have a checking account and all the banks are denying me because of ChexSystems. Restoring credit is not an overnight process and these banks (the sames ones that have been getting bailed out by the government) are making me feel like a hardened CRIMINAL because of a couple bad decisions I made with credit cards & loans when I was a kid!

I currently run a small business but cannot really move forward because I don’t have a checking account to deposit my checks or pay the vendors I owe. I’ve been having use prepaid cards and sketchy check cashing services to deposit my checks and send out money orders from random places to pay my vendors. Not only is this becoming VERY expensive and inconvenient, it’s very unprofessional! I have to withdrawl money from my prepaid debit card (sometimes 2 and 3 times), then go pay for money orders that only go up to certain amounts (which means I have to get 2 or 3 money orders for one person). Plus, all the fees are killing me!

My main concern is paying my vendors, not really depositing my checks — so I was wondering is there a legit bill pay service that will allow me to payment anyone (company or individual) using my debit card (this is the only way I can pay since I don’t have an actual bank account) and issue paper checks to the payee on my behalf??? I’m only interested in a reliable company ONLY, so that I won’t have to worry about them going out of business, running off with my money or something like that. The only two requirements are that they MUST accept payment via debit card and issue paper checks to the payee for me. As mentioned, I’ve been paying vendors using money orders which is a hassle, highly-unprofessional and hard to track if it were to ever get lost in the mail.

Basically I just wan to be able to login every 2 weeks, enter all of my payees information & check amounts, pay all the checks to the bill pay service with my debit card, have a paper checks sent out to the payees (preferrably with my business name on them) and then have the ability to track it online, if necessary (for instance, if a check gets lost in the mail). I’ve taken a look at MyCheckFree, PayTrust, etc and all have only part of what I need… but not all! Again, I am working on restoring my credit and getting things cleared with ChexSystems but in the meantime, I need to be able to run my business so that I can live. Any solid suggestions???


And to everyone out there, credit is almost EVERYTHING in America! The world is heartless and cares nothing about you — it’s you and you alone, so work to protect YOURSELF! Apparently without money/credit/power, people treat you like dirt. Protect yourself and your credit, young folks…

admin answers:

You are in ChexSystems because you owe a bank money, most likely from bad checks.

The only way off is to pay what you owe. Literally ANY bank can tell you how much you owe and handle repaying it with you.

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