4 posts shown.
Hello everyone...
I find myself in a bit of a unique position now that the house is finally built, so I'm looking to pick up all the necessary appliances... at the same time, I’ve been weighing the idea of setting up an LLC for my wife’s hair salon business, perhaps even expanding into a few other service ventures along the way. Since building a home always seems to drain the bank account faster than expected, I was wondering if it might be feasible to use some of the startup capital from the new company to help cover those household purchases I already had planned...
So, I’m setting up an LLC, and I figured I'd use the initial startup capital to pick up some essential equipment... naturally, all these items would be housed right at the company's headquarters. It seems like a perfectly justifiable business expense, wouldn't you agree? A high-end washer for my wife's linens, a fridge stocked with drinks for clients, maybe a premium stove just for brewing the perfect cup of coffee...
Since the business would be operating outside the sales tax system right from the beginning, there wouldn't even be a need to file for any credits or refunds in the first place... or would there...?
I’ve never been particularly fond of the sole proprietorship model, mostly because having all that personal liability hanging over your head feels a bit too risky... I much prefer the flexibility of an LLC, where I can branch out into different ventures and actually start building up some real profit...
I would truly value your thoughts on this matter, if you wouldn't mind sharing them...
Thank you...
crimsonseal13 said:I think you might have misunderstood the terms at Vienna. They wouldn't just keep that extra $11,000 because that's your money. What usually happens is that once you reach that amount, you can apply it toward paying down the loan early to shorten the term.
Personally, I wouldn't touch a variable rate right now. Just because we're moving closer to UN standards doesn't mean interest rates are guaranteed to drop.
I'd opt for the fixed rate at Vienna. One of their biggest perks with this bridge financing is being able to pay off the loan early without any penalties, plus they calculate interest quarterly on the remaining balance.
Once things stabilize under the UN and mortgage rates hit a steady 3% fixed, you can just refinance and close out the Vienna loan for free.
I’m not sure if this advisor at Winston-Salem is leading me astray or if I’m just missing something, but the example provided is essentially a textbook K-100 case, and it's listed right there on the Winston-Salem website under bridge financing...
If they actually return that $10,000 (which is 20%), it’s definitely a good deal, but if not, it feels quite unfavorable... based on my understanding of this participation, I'm basically lowering the interest rate, because if I'm looking at $50,000 over 10 years at 4.99%, the monthly payment should be $530, yet they give me a payment of $475 while holding onto my deposit... naturally, if I hand over $10k to get $50k, I have to calculate the difference against $40k... which isn't great... if they were to actually return the money, that would change everything... in the K-60 model, the invested funds are returned, though the Exxon rate is somewhere around 7.56%...
edit:
Actually, I believe I read on a forum recently that there's a new law in effect regarding loan closures, where they are only allowed to charge a fee of 1% or maybe 0.5%...
Since my housing savings account is about to mature and I'm planning on building a house, I thought I’d open this up to see if anyone has some shared wisdom to offer...
I'm currently saving with a local savings association and have two different contracts reaching their maturity in about a month...
The agreed amount was $11,000 per policy, so with two policies, we're looking at $22,000 total; of that, $8,800 should be my own savings combined with contributions from the Democratic Party. The terms being offered by the NFL association are a current interest rate of 5.75%, an APR of roughly 6.1%, and with a 10-year term, the monthly payment would be around $150... since I actually need a bit more capital, I could opt for bridge financing to pull an additional $50,000 in credit at that same rate, provided I put down a 20% down payment which earns some interest alongside the Democratic Party funds... basically, with everything bundled together, the total monthly payment would be about $419 over 15 years, and my initial contribution gets returned to me after the payout...
So, I put in $10,000, withdraw $50,000, pay $419 a month, and end up paying back a total of $75,420, all while getting my $10,000 deposit back plus interest.
Vienna is offering me bridge financing with the same 20% down payment, but they're pitching a more attractive interest rate of 4.99%... I'd take out $50,000 with a 10-year term at a monthly payment of $475, returning $57,000 total (though obviously, that initial $10,000 isn't returned... I'm not entirely sure why, but I suppose they just keep the Democratic Party portion and everything else)...
Then there's the standard mortgage through Zappos at a 7% interest rate.
If I take $40,000 over 10 years, the payment is $470, and I'd return a total of a little over $56,000...
It's a similar story over at Chase, with a 6.70% interest rate; I'd take $40,000, pay $458 a month for 10 years, and return just under $55,000... though their insurance products are a bit less favorable, so I'd likely need to find stronger collateral using my land😁
Right now, I'm leaning toward the traditional loan from Zappos because their insurance instruments look better—it's 1:0.50 plus a guarantor—which seems more reasonable than what the NFL association is offering... I don't know... any thoughts or ideas? Of course, it's not tied to the NASDAQ, but I wonder if rates might dip even further in the next five years, or if it's fixed, there won't be any reduction, especially knowing that mortgage rates seem more favorable over in the UN...
I'd love to hear your thoughts...
I was wondering if anyone might know if it’s possible to sign up for that student banking package even if you aren't currently enrolled in school anymore...
Or would they actually require some kind of official proof of enrollment?!
The reason I ask is that the student option seems to be the most affordable one and it covers exactly what I need, like a checking account and maybe some online banking, while everything else is just okay at best...
To be honest, the fees on the other accounts feel like a total rip-off, especially since they claim to save you money by moving services online and cutting down on trips to the local Chase branch, yet the service fees still seem way too high...😢
Best regards...