I need a some advice

[Ashley Payton]

I am in the process of planning a start-up high-end shoe boutique in my area. I am now at the part of finding financing along side finding a building. Now here's my dilemma:

I am looking for a commercial /retail space that is up for sale rather than just leasing. I figured that would be better for many reasons; collateral being one. So does it make sense for me to find a hard money lender to purchase a building? Not completely clear on how hard money lending works, but it would just basically be like a 5 years loan with the building as collateral. I also figured, just from what I've been reading, hard money lending is a quicker process and I am on a bit of a time schedule so the quicker the better.

Or, should I look into Crowd Funding? I did a bit of research on that also, but it seems most of what I found is for things that are going to some kind of cause, charity , or technology: all of which I am neither.

Or, would it be best for me to find a private lender who could give me a loan to purchase the building and the loan for the actual business while using the building as collateral? Like killing 2 birds with one stone.

Or, should I take my chances with a bank? My credit is not the best, but it's decent and my business plan is pretty solid. And I'm sure they will also use the building as collateral.

I have a few buildings in mind and I am just trying to figure out my best options before proceeding. I really am confused as to what track to take and I am not up for wasting my time.

Help me figure this out!!! Thanks =)

[Jerry W.]

@Ashley Payton , I have a few concerns. First you have not stated how much start up money you have. The amount you put down does play a role in hard money lending. Hardmoney has much higher interest rates and you pay points up front. They usually require a lot of your own money being invested. If you use the building for collateral for a hard money loan you cannot use it for collateral for money to start your business. You need conventional financing for the building if you can get it as it is the cheapest. You will probably be paying 10% higher using hard money loans as compared to conventional. You might investigate a small business loan, they have some government subsidies in many cases that can lower your interest rate. If you cannot get a small business loan, you probably will not get a loan. Your business has no history of income for a lender to go off of making you a high risk borrower. You might consider renting until you can show a good income from your store. You can think about buying when you have an earning history from your business.