A loan is taken from a bank for one purpose only. Say for your business you can take loan (or) to buy a plot you can take a loan (or) to buy an apartment you can take a loan. You can't take a loan to buy a property and by pledging this property you can't take a new loan! For every loan you need collateral security or to prove your financial capability to repay PLUS two guarantors to support you in signing the bank documents to pay back the loan if you get defaulted!
Added, after you purchase the house on a plot with the bank loan, you have to hand over the complete documents of the property to the bank and after your complete repayment of the loan with interest amount only the title of the property namely the house will be transferred to you, legally!
So, you can't buy a property by a bank loan to take a re-loan on same for your business! Hope this is clear to you!
The amount of loan you can get will be based on the value of the property on the land. Most bank do not give loans based on land value. The business loan can be tied to how much collateral you have in the property, however it does not make much sense to buy a property to take a business loan out on it because you would obviously need to have cash to buy the property and that cash is worth as much in collateral as the property and does not have any additional liability attached to it such as property taxes.
This very practice is what has led to the housing crisis across the country. Banks are now tightening up and not making anymore 100% True Cash Value Loans.
You might be able to find a private lender, like a family trust to loan 100% loan if the land appraises for more than the sales price.
If you go to a private broker, do not pay a finders fee until they have found the loan for you. Lot of crooks out there that will take the fee up front and then never find the loan for you.
You can't use something that you have no equity in....as collateral.
Like Ranger said!
Ha ha ha, if only we could!
No way Pedro!
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