HWT
01-08-08, 08:48 AM
While we're umming and aahing about what to do with our new house/land, we realise that if we build a second house and sell both we'd get maybe $60,000 profit on the first house and $100,000 on the second, less fees/costs/etc.
We have a business on the backburner (the ubiquitous Plan A) that is suffering from being a very long term project to get going that could use cash to purchase things it needs that we are incapable of doing ourselves but are critical to the business. We haven't been working on it at all for the best part of a year now, if not longer, mainly due to cashflow issues. This IP is potentially the solution to all our funding problems.
Would it be a better idea to build that second house and sell both to realise the cash and then go off and slowly spend it from an interest bearing account, or walk into a bank with a business plan and two houses and get an equity backed loan or LOC that we could slowly draw down on for salary, rent and hosting costs? Would a bank even give us a LOC that will be unservicable for around 1-2 years, as per the business plan?
We have a business on the backburner (the ubiquitous Plan A) that is suffering from being a very long term project to get going that could use cash to purchase things it needs that we are incapable of doing ourselves but are critical to the business. We haven't been working on it at all for the best part of a year now, if not longer, mainly due to cashflow issues. This IP is potentially the solution to all our funding problems.
Would it be a better idea to build that second house and sell both to realise the cash and then go off and slowly spend it from an interest bearing account, or walk into a bank with a business plan and two houses and get an equity backed loan or LOC that we could slowly draw down on for salary, rent and hosting costs? Would a bank even give us a LOC that will be unservicable for around 1-2 years, as per the business plan?