Sell Your House to Finance Your Next Entrepreneur Project
Every entrepreneur project begins with an idea. Whether it’s a great product that will revolutionize an industry or not, your inspiration and determination is a good starting point.
However, this isn’t enough. Creating a successful business takes more than ideas, and financing is one of the hardest parts.
According to a Bankrate study, in 2018 44% of Americans could not cover an emergency expense of $400 out of their pocket and only 39% have enough money to fund a $1,000 emergency.
Therefore, it’s common that Americans don’t have enough money to finance their entrepreneur project and most likely, they’ll need to request a loan. Moreover, if you’re an average person, with an average bank account and a family to feed, the degree of difficulty is much higher.
How to Start The Entrepreneur’s Journey
Financing your entrepreneur project is key to successfully creating your idea, but applying for a business loan is a long process and there are many factors to consider. For this reason, many entrepreneurs have chosen an unconventional but worthy way to fund their business: selling their house.
It might sound crazy but without financial sacrifices, a company won’t succeed and you won’t have to experience a banking stressful process that doesn’t guarantee any cash in the short-term.
Find an Experienced Mentor
Start attending events that will connect you to a mentor or perhaps, you already have someone in mind. Besides, many cities have innovation labs or mentoring programs that could help you improve the business’s idea.
When Selling Your House is a Good Idea
Selling your house to fund your next entrepreneur project is a good idea, especially if it’s a capital intensive business or your property gained value. Let’s explore both of them.
Capital Intensive Business
Commonly, banks focus on the risk and not on the business’ potential, and entrepreneurs are required to pay a higher interest rate to compensate for the uncertainty. Besides, these financial institutions don’t understand the venture’s idea like you do, even when presenting a detailed business’ plan.
When applying for a business loan, your credit score will always impact your chances of getting approved. Additionally, you’ll be required to calculate financial projections that prove the business’ profitability. Keep in mind that if your credit history is bad, then banks aren’t a good idea and you should look for a smarter alternative.
Your Property Gained Value
Entrepreneurs are taking advantage of the real estate market since properties are usually an appreciating asset. There’s no doubt that you’ll sell your house for a higher price and you could add more value by doing cost-effective renovations. Here’s a list of some of them.
Remodel the Kitchen
You can expect to recoup 60% to 120% of your investment on a kitchen renovation. You could paint in modern colors that combine with your kitchen appliances and the rest of your house. When remodeling, don’t go over the top and spend unnecessary money, your kitchen should look nice because it’s your house’s heart but it shouldn’t be a fancy restaurant kitchen.
Create a Bathroom Addition
Adding a bathroom to your house can result in an 80% to 130% return on investment. In this case, you could consider the extra room or underutilized spaces, such as closets or areas under the stairs.
Renovate Outdoor Spaces
Outdoor living spaces have become more desirable, especially since more people are staying home for vacation. So, building a deck addition makes your house more appealing and the return on investment can be up to 90%.
Another Alternative
Entrepreneurs are also investing in properties to sell them at a higher price since getting approved for a mortgage loan is easier. However, the selling process can be time-consuming when selling on their own or with a real estate agent.
Sell My House Fast and Easy
If you are thinking “I want to sell my house fast”, you should contact Captain Save a Home. We buy houses in Milwaukee and provide win-win solutions to help homeowners accomplish their dreams and avoid financial hardship.
Financing your next entrepreneur project has never been easier with us, you just have to fill out a quick survey on our website and we’ll contact you in the next few days to schedule an appointment. Don’t worry about major repairs or costly reparations, we buy houses in any condition.