Sometimes You Hear The Whine About Banks Too Tight, Money Not Flowing Freely.
Who to blame when a Maine real estate buyer for a business, for a home, for any property listing can not get the mortgage loan?
Often the Maine banks, the SBA, economic development folks or be your shadow stimulus agencies just trying to help the loan along to the real estate closing get a black eye. Are the receivers of the thrown rotten produce. When things go sour. Head south.
The Maine mortgage business loan is denied.
Or further pleas for additional money above and beyond the first pile after it is gone, to keep going means wheels squeal to a stop. After more moolah, more cabbage being added to the debt, mortgage securing the business process seizes. Dries up, terminates. The thin ice breaks.
The flow of red business ink takes it toll and the show’s over.
House lights up on Vampire chasing bright. And it’s time to head out into the cold. Can’t stay here. Take your empty popcorn box, candy wrapper and drink container with you would you please?
Banks in Maine have standards of lending, don’t want you to see you go belly up. Out over your head. Need, want to make mortgage loans. The Maine bank, the financing arm of the business loan officer where it all begins, lives in the community. As your friend, neighbor, partner does not want your property in a foreclosure. Everyone loses when that major hiccup happens.
In the case of garden variety small Mom and Pop Maine business real estate listings we sell, if the numbers are poor, missing, eyebrows get raised. The room gets pretty quiet fast. On either side of the buyer’s or seller’s side of the teeter totter. Scrutiny needed to probe, turn your head and cough examine the financials.
The debt ratios are wrong, the income too low, appraisal weak to support the unhealthy overhead.
No matter how loud the whispers about under the table, undocumented income. That does not show up out in the open. That everyone starts buzzing about looking over their shoulder when being discussed. Not wanting the world to know. The IRS to come a knocking for a little chat, visit.
So when you work with local bank partners in the process to do all you can to get a new business loan fire started, sparked and roaring brightly, it is discouraging when someone calls foul.
To hear when after all of everyone’s effort, the on the street grape vine gossip reason spouted for not getting the loan approved is due to the guys in the ties, ladies in the heels and skirts.
The bean counters, those who have the combination to the bank vault to swing it open wide and help yourself. But won’t.
Who black balled a good idea. What is the matter with these idiots the rejected borrower wannabe or foreclosed on mutters. Because it seems not everyone is so hot about banks, oil companies, lawyers, any profession even real estate. If anyone stands in the way of getting it to happen. A “yes” not a “no” thumb up or down. Do I get the money or not? Instead of missing the boat because the idea has to be parked, bolted on a sound business platform vehicle first. To be able to roll on down the highway smoothly.
No they did not help you on iota, one bit with the credit counseling, business projections, education on all the areas affecting this best idea for a commercial enterprise ever. It was not the idea, not something to take personally in the denial.
But the rest of the business plan that takes time to assemble. Parts that are vital, painfully missing. You need all the cogs to create the economic machinery needed to fire it up. Keep it going. To maintain the conveyor belt flow under a business work load pressure and not stall.
No kinks in the hoses happen that feed and fuel the machinery. Oiled, humming, buzzing, fed. What any Maine business needs to stay to be strong and healthy.
Doors open. To prosper.
When we are selling a listed property that has potential to be whatever brainstorm, passionate endeavor the buyer wants to see it used for, no matter how talented or ingenious the idea, it is still a business proposition.
First, last and in between. A for profit not an organization with 503c status where making money is not the end all.
But still breaking even more often than not. Has to take in as much or more than it sends the other way in expenses. It is a business whether talking running a real estate office in Maine, a veterinary clinic, horse farm or sporting camps complex built from the ground up. To succeed and make everyone look like a hero. Or fail, get lost in a foreclosure yank it back when everything unravels. Checks written but bouncing wildly.
It is not a reflection of is the buyer of the vacant Maine real estate storefront property with the empty non income generating apartments overhead being a hard worker or not. Not a character judgement. A lot more of an accountant’s spread sheet of profit and loss projection. When no solid current numbers to study, bank on.
One by one planning for the expenses the borrower may never had thought about because this is all unchartered territory with deep dark murky water.
To see if on paper with out any past track run history if this could fly or not.
Like doing the math on sending a manned rocket to the moon for the first time.
These guys gonna make it back okay? Not just relying on a quick down in the gut feeling. Flipping a coin easy to predict the outcome.
Is there enough starting capital in the til to keep the business engine turning until it fires up, purrs on its own.
Can run without the battery jumper cables attached and can of ether spraying. To produce horsepower to sustain. To weather economic storms. To lead the charge for expansions, added payroll when the business starts to grow. Or shrink, survive, be viable when the dip in the road happens. Everything bottoms out, goes quiet for income, not expenses. That is what small business is all about and what America was founded on. If you worked hard, minded the business P’s and Q’s. Maybe you stay in business.
Lots of local banks in Houlton Maine to talk about financing a property listing, piece of area real estate. And entities like the Small Business Administration, development corporations to help foster local start up of a business that offers employment. Adds to the local tax base. Helps generate new dollars in the community, county, state economy to benefit all. Turn over six or seven times for the win win.
I sold a listed unopened Maine restaurant business property to a fellow that was a prison chef.
Not a lot of customer complaints in that type of eatery. I remember he was anxious to put into action lots of great ideas he had thought about while dishing out the…’er food, I did not say slop.
This Maine dining place when opened for decades successfully served up the potato salad a little more chopped up, fine, creamy than the bigger chunks and dry route. He was thinking he liked it better the opposite of the locals that had always worked best. I told him not to monkey with the local traditions for whatever it was worth as my two cent contribution to hope you succeed. Hit a meal deal business out of the park home run.
He did not adhere to the local tradition in a lot of ways.
Forgot it was a business. And the place did not get off the ground. Foreclosed on, sunk, default on the mortgage happened. So everyone loses at that crack of the bat that breaks, splits in two.
So am a big believer in business 101 counseling if the buyer of a commercial Maine real estate listing has no experience. Not matter how great the idea, proposition. Because the commercial, business property listing sale in Maine is built on a platform. An idea for a product, service, manufacturing or distribution but hitching a ride on sound business principles.
Considering, factoring in all the expenses, delay in getting up to speed that could and will happen in the Maine business listing day to day.
Hitting hard in the wallet. Testing the business owner’s stamina of resources.
Are they both large enough to survive after the honeymoon period ends?
Some ideas of where to turn as you look into, toy with getting a business loan, mortgage on a Maine business property off the ground.
Check this site with helpful resources to start a new business, enhance an existing one. To get it into the air. To stay up and soar. Not going down in a fast cork screw flame of glory destruction and ruin deep into the dirt.
Businesses, bring in those great ideas to start from scratch or renovate, revamp an existing but outdated Maine property facility.
Love to help in the dream and getting it financed through a bank, government shadow supporting it or with helpful owner financing on the Maine land a business could use. To spring from the ground up. Or a blend, combination of all those financial partners in the process, job creation. The one more local place for shopping for goods, services close to home in the communities around it to all enjoy.
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