On Sat, 2 Nov 2013 18:24:18 -0500, "RogerN" wrote:

"Ignoramus11177" wrote in message
...

On 2013-11-02, RogerN wrote:
snip

I'm not wanting a business loan, just money for the building.

What you described in your original post, is borrowing money for a
business operation.

Yeah, I wasn't clear. I already have the bulk of what I want for my shop, a
manual & CNC lathe, 2 manual mills plus a CNC mill, air compressor, press,
cherry picker, forklift, band saw, and so on. All I need is the building,
there would be minor other expenses, I figured in the electrical to the shop
plus inside plus light fixtures and outlets. Other expenses are like the
forklift needs a battery, need shelving, maybe a wall for office area and
tool room, and misc. things like that.

The building is something I want anyway, I'm not going to depend on any
income, that would just be a bonus. But I do think there's a chance as I
make things for hobby that it could grow to become a steady income possibly
beyond my day job. I have turned down paying machining work that I would
take if I had the shop handy, a friend rebuilds valves and cylinders, I can
make about $40 in 30 minutes machining a cylinder rod but loading up and
going to the shop makes it a couple hour ordeal. I can make the same rod in
the CNC lathe in about 5 minutes.

RogerN


I think that you are taking the wrong approach if you are talking to
the bank about money you may, or may not, earn from hobby machining.
The bank is going to look at it as a real estate question. Try doing
what the bank is likely to do:

Get an independent assessment of the sales value of your present
buildings and property and a second assessment if there were an
additional X by Y foot building on the lot.

Depreciate this assessment for by outstanding money owed on the
property and buildings, then depreciate this number for the possible
quick cash sales of the place.

You now have a number, less interest, that the bank might be
interested in discussing as some form of a mortgage against the value
of the buildings and land.

--
Cheers,

John B.