- Jul 7, 2007
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I reckoned what better place to go with questions than a forum of total strangers lol.
Anyhow, the wife and I own a B&M business (Florist), and after 17 years of owning/running it mostly by herself ( I have a 9-5 job, then I go to the florist and work there too), she is wanting to get out of the business. She's just lost the 'passion' for it I guess. Too many hats to wear: designer, order taker, accountant, salesperson, supplies orderer, not to mention the paperwork that has to be done (I guess that falls mostly under 'accounting').
We own the 'space' the business is in (vs leasing it), and there's about 2 1/2 years left on the 'mortgage' (I dont know what its called exactly for a business) before it's paid off. The balance is about 75K at 3.75% fixed.
Our home mortgage is roughly 70K with 5 years left on it at 4% fixed. Our credit is 'good' bordering on 'excellent' at the mid 700's. It is thru a different lender (BB&T) than the business.
She wants to sell the business part of it (inventory, name, customer database, equipment), and just lease out the space.
The loan is in the corporation's name (S-Corp I think it's called), and after conferring with an attorney, he believes it will be much 'easier' to sell the business if we transfer the business loan into our names. I dont have the details on that, as I was not attending the meeting. This is 2nd hand (or 3rd?) information relayed to my by my wife.
So, the wife called the mortgage company that currently has the business loan asking if they could 'merge' both loans (our home + business) into 1 loan under our name and keep the same time period for payoff (about 2 1/2 for the business and 5 for the home, so I'm guess a 5 year loan) and they said "......we only do 25 year loans for this, but you can pay it off early!". My BS-meter immediately went off.
What I'm asking advice for is:
-What is this procedure called actually?
-Is the business loan holder trying to put one over on us?
-What other options are available for this?
TLDR:
-Own business and home
-Want to consolidate both loans into 1 under our names
-Business loan holder says they only do 25 year loans for this
-options?
Thanx in advance
Blah-Toe
Anyhow, the wife and I own a B&M business (Florist), and after 17 years of owning/running it mostly by herself ( I have a 9-5 job, then I go to the florist and work there too), she is wanting to get out of the business. She's just lost the 'passion' for it I guess. Too many hats to wear: designer, order taker, accountant, salesperson, supplies orderer, not to mention the paperwork that has to be done (I guess that falls mostly under 'accounting').
We own the 'space' the business is in (vs leasing it), and there's about 2 1/2 years left on the 'mortgage' (I dont know what its called exactly for a business) before it's paid off. The balance is about 75K at 3.75% fixed.
Our home mortgage is roughly 70K with 5 years left on it at 4% fixed. Our credit is 'good' bordering on 'excellent' at the mid 700's. It is thru a different lender (BB&T) than the business.
She wants to sell the business part of it (inventory, name, customer database, equipment), and just lease out the space.
The loan is in the corporation's name (S-Corp I think it's called), and after conferring with an attorney, he believes it will be much 'easier' to sell the business if we transfer the business loan into our names. I dont have the details on that, as I was not attending the meeting. This is 2nd hand (or 3rd?) information relayed to my by my wife.
So, the wife called the mortgage company that currently has the business loan asking if they could 'merge' both loans (our home + business) into 1 loan under our name and keep the same time period for payoff (about 2 1/2 for the business and 5 for the home, so I'm guess a 5 year loan) and they said "......we only do 25 year loans for this, but you can pay it off early!". My BS-meter immediately went off.
What I'm asking advice for is:
-What is this procedure called actually?
-Is the business loan holder trying to put one over on us?
-What other options are available for this?
TLDR:
-Own business and home
-Want to consolidate both loans into 1 under our names
-Business loan holder says they only do 25 year loans for this
-options?
Thanx in advance
Blah-Toe