Needs some tips on funding a pole building
- Thread starter harner
- Start date
Buckgnarly
Well-known member
Sounds like you may want to reconsider your finances........don't take it the wrong way, but you may find yourself in over your head some day, especially since you are considering cutting corners.
kb2tha
Well-known member
Not to put a damper on your plans........but part of the rush of life is the journey we take in fulfilling our dreams. From what you have written, it sounds as though you have time to build up to your dream, whether it be a fancy garage, that 75k car or both and more.
My wife and I never purchased a new vehicle until we were married 20 years. Now going on 40 years and life is good. On the other hand, my daughter in law is 32 and on her 4th new vehicle, new house, horses, camper, etc. Then they wonder why they pretty much live paycheck-to-paycheck.
We bought our home as a rental house that was in desparate need of repairs. Took some time, fixed it up, built equity and then purchased another rental that we renovated and put two apartments in. We now have the original home as a fully done large single family and have since sold the apartment property. That gave us the funds to fill some of our other dreams.
Take some time.....build some equity and let the house work for you instead of the other way around. Good things will come of it in time.
Enjoy the journey.
My wife and I never purchased a new vehicle until we were married 20 years. Now going on 40 years and life is good. On the other hand, my daughter in law is 32 and on her 4th new vehicle, new house, horses, camper, etc. Then they wonder why they pretty much live paycheck-to-paycheck.
We bought our home as a rental house that was in desparate need of repairs. Took some time, fixed it up, built equity and then purchased another rental that we renovated and put two apartments in. We now have the original home as a fully done large single family and have since sold the apartment property. That gave us the funds to fill some of our other dreams.
Take some time.....build some equity and let the house work for you instead of the other way around. Good things will come of it in time.
Enjoy the journey.
Steevo
Well-known member
Just financed a house (with very little equity).
Just financed an $18k car loan.
Now you want to borrow some more to build a pole building.
Slow down and think about it before you find every penny your earn going to payments.
Just financed an $18k car loan.
Now you want to borrow some more to build a pole building.
Slow down and think about it before you find every penny your earn going to payments.
I understand that it sounds pretty crazy that I have quite a bit from a finance standpoint. I am funding quite a few other projects right now which is why I didn't really want to embark on saving for this, since I know those other projects would consume the funds very quickly.
I do appreciate the responses, though. Thanks for the insight and opinions. My goal for building a garage is to eliminate a rental payment I have on a garage currently.
Thanks!
I do appreciate the responses, though. Thanks for the insight and opinions. My goal for building a garage is to eliminate a rental payment I have on a garage currently.
Thanks!
$40-45 grand seems high to me for a building. Are you capable to do any of the work yourself ? Even if you had the excavation done, concrete work and shell put up, can you finish the rest ? Once that is done, you can eliminate the rent and bring your vehicles home to their new stable. Finish the interior as you save the cash.
~$30-35k was just for the shell, excavation, and concrete. I planned on doing the furnishing, insulation, wiring, plumbing, etc myself or contracted out on a much smaller scale. I may just piece it together and have the property excavated and then the building assembled. And then pay for concrete work when funds allow.
But, having a garage with a dirt/stone floor is a little useless for my needs outside of simple storage. I was hoping someone would say, "Hey talk to this guy at 1-800-***-xxxx and tell him Frank sent you." LOL.
But, having a garage with a dirt/stone floor is a little useless for my needs outside of simple storage. I was hoping someone would say, "Hey talk to this guy at 1-800-***-xxxx and tell him Frank sent you." LOL.
Highbeam
Well-known member
Needs or wants? I didn't build my first shop until I was 35 YO, never have bought a new car.
Your inability to secure the funds speaks volumes.
wedge40
Well-known member
I talked about my "barn" for almost 10 years before I finally got the money together to put up a shell. Just shell, no cement, no electric, just a shell. Going on two years since I got the shell up and just last Jan. I got cement poured. I'm saving then speding to get what I want.
Not sure how old you are and what your income is like, but sometime we can't have everything we want right this very moment.
Wedge
Not sure how old you are and what your income is like, but sometime we can't have everything we want right this very moment.
Wedge
Wow... My intentions for this thread was not to be bashed about my ability or inability to come up with funding for such an investment. But hey, it is the Internet. I have also never purchased a new car and never plan to. I have quite a few investments and am doing pretty well financially speaking.
Just looking to cut one endless fund and secure it into another. Thanks for posting though.
Automatic Slim
Well-known member
some people finance such against the equity in there house (refi), which can be had a decent rate.
Unsecured loans are usually lower denomination (in my experience) as banks got torched on lending during housing bust and poop diamonds >10K. The interest is more expensive and terms less friendly.
You will pay an exorbent premium trying to finance with PB builder, rest assured it's factored in.
I'm kinda of cash and carry guy myself, but understand the need to finance some things. As you, drive used as can do most repairs and have some knowledge, owe just a little bit on the shack, but been at it a while.
In any event, the bank is going to want plans and income statements. If you make enough they may float and you are f*cking the banker's wife, but probably not for that much.
Golden opportunity to research, plan, and do in increments. Probably save you a ton more from all the unnecessary bullcrap your likely to store as well.
IMO, although I'm no realator, but have dabbled in acquistions, these "type" structures usually don't command much more money, as alot has to do with the property in which it sits. Sooooooo, most people who have such thirst, usually search for property that already has similiar structure for initial purchase.
You might turn even or tiny profit on recent home, and flop if you find digs with barn already on premise. That would probably be the BEST option in this case, or wait it out. The bankers got you by the balls and will be quite unlikely they will sign off on an ancillary structure with no money (big) down.
Unsecured loans are usually lower denomination (in my experience) as banks got torched on lending during housing bust and poop diamonds >10K. The interest is more expensive and terms less friendly.
You will pay an exorbent premium trying to finance with PB builder, rest assured it's factored in.
I'm kinda of cash and carry guy myself, but understand the need to finance some things. As you, drive used as can do most repairs and have some knowledge, owe just a little bit on the shack, but been at it a while.
In any event, the bank is going to want plans and income statements. If you make enough they may float and you are f*cking the banker's wife, but probably not for that much.
Golden opportunity to research, plan, and do in increments. Probably save you a ton more from all the unnecessary bullcrap your likely to store as well.
IMO, although I'm no realator, but have dabbled in acquistions, these "type" structures usually don't command much more money, as alot has to do with the property in which it sits. Sooooooo, most people who have such thirst, usually search for property that already has similiar structure for initial purchase.
You might turn even or tiny profit on recent home, and flop if you find digs with barn already on premise. That would probably be the BEST option in this case, or wait it out. The bankers got you by the balls and will be quite unlikely they will sign off on an ancillary structure with no money (big) down.
Last edited:
Ryf
Well-known member
I think their point isnt to bash you. its to see if your thinking this through. I am not saying you do or dont need it. but, clearly you cant afford it, thats a concern, if its for a business venture there are business loans, if your already profitable in your venture that might help you out. if this is "to have a place to work on toys" I would say I tend to agree with the others that now isn't the time.. maybe you could look at a foundation for the whole building and only do half, make the future inside wall removable later, you will have to deal with posts in your building, but you could cut costs greatly. I think the general feeling isnt "dont have a garage" its "make sure you don't loose your house and garage to get a garage"
its alot harder than it used to be to borrow house money, and I feel your pain on wanting a big ole building. if the banks are saying no, its because they feel you can't afford it. it looks like you have a few toys in your sig line, sell one or two for the amount you couldn't get , if having a garage is more important than your other current projects, consider liquidating them if possible.
all that said, I come bearing a cheaper option. a 30x41 with 10ft walls carolina carport enclosed building with 2 vehicle doors and 2 walkin and 4 windows for "stanton, PA"(cuz I dont know where ya are in PA so I just picked somewhere) was under 15K with the best roof and vertical a-frame roof so it looks like a pole barn, and the highest wind and weight load possible, I would say that with a 10K foundation puts you under 25K for your shell... might be an option thats affordable.
its alot harder than it used to be to borrow house money, and I feel your pain on wanting a big ole building. if the banks are saying no, its because they feel you can't afford it. it looks like you have a few toys in your sig line, sell one or two for the amount you couldn't get , if having a garage is more important than your other current projects, consider liquidating them if possible.
all that said, I come bearing a cheaper option. a 30x41 with 10ft walls carolina carport enclosed building with 2 vehicle doors and 2 walkin and 4 windows for "stanton, PA"(cuz I dont know where ya are in PA so I just picked somewhere) was under 15K with the best roof and vertical a-frame roof so it looks like a pole barn, and the highest wind and weight load possible, I would say that with a 10K foundation puts you under 25K for your shell... might be an option thats affordable.
kb2tha
Well-known member
Wow... My intentions for this thread was not to be bashed about my ability or inability to come up with funding for such an investment. But hey, it is the Internet. I have also never purchased a new car and never plan to. I have quite a few investments and am doing pretty well financially speaking.
Just looking to cut one endless fund and secure it into another. Thanks for posting though.
Not really bashing. We are just calling it ...... as we see it...... from the information you provided. As you said, it is the internet and you did ask the question. One thing you will find on this forum is honesty, sometimes brutal but again as we see it.
If you are paying rent on another building to store your rides, that may factor in your ability to secure the loan. What you are being warned of is the accumulating debt that will still be there when unforseen circumstances happen. And they do happen.
You could drop the rent on the building and even sell a couple of cars if needed (did I really say that?) but once you have a loan to pay, it is there for its' duration. Bottom line, we are just saying be careful. Some on this forum are speaking from experience.
Last edited:
i am a lender at a small local bank. i do this sort of thing all the time. depending on your financial situation you have a few options.
-you just financed a car, im guessing you dont have much equity in that, if you have other things of value such as boats, atvs, other things you could use as security
-any other bare land such as ag or commercial properties.
-get a construction loan and if this is by your house you can refi, im guessing they wont do this as you dont have much equity in your house or any cash to put down if the loan to value is not adequate.
-unless you are a gold standard borrower of your bank unsecured loans usually arent the best way to go, IF they would even give it to you it would probably be a very high interest rate.
you also have to think that if you are getting denied over and over, it must be for a reason? credit score, high debt to income ratio, not at job for a decent length of time, not a long relationship with financial institution.
while it sounds like you have the cash flow for the loan, from what i am gathering you dont have enough equity in anything to secure the loan, which for most banks equals a denial.
-you just financed a car, im guessing you dont have much equity in that, if you have other things of value such as boats, atvs, other things you could use as security
-any other bare land such as ag or commercial properties.
-get a construction loan and if this is by your house you can refi, im guessing they wont do this as you dont have much equity in your house or any cash to put down if the loan to value is not adequate.
-unless you are a gold standard borrower of your bank unsecured loans usually arent the best way to go, IF they would even give it to you it would probably be a very high interest rate.
you also have to think that if you are getting denied over and over, it must be for a reason? credit score, high debt to income ratio, not at job for a decent length of time, not a long relationship with financial institution.
while it sounds like you have the cash flow for the loan, from what i am gathering you dont have enough equity in anything to secure the loan, which for most banks equals a denial.
Last edited:
GE Capital - Consumer, traditionally was one of the easiest places to go for financing projects like that. For a long time, with the right score, you could finance essentially anything at very competitive rates. It's not quite like that anymore, but it might be your best shot besides a local credit union. With two recent loans of a pretty significant magnitude, many creditors will be leery of you being overextended though. That's regardless of your credit score, history, or income. They'll typically want to see that you've been comfortable managing that increased debt burden before extending even further.
Not to even begin mentioning the Dave Ramsey mindset of what you're doing
Not to even begin mentioning the Dave Ramsey mindset of what you're doing
38Chevy454
Well-known member
Since you don't really have house equity, the HEL route is out. That leaves either a construction loan, or get a second job and save like crazy. It will be easier to just save like crazy and delay the build for a year.
dbonne
Well-known member
Not to even begin mentioning the Dave Ramsey mindset of what you're doing
+1 Roots!
Living within your means and saving every chance you get will pay cash for your building!
Playwme
Well-known member
A garage that costs $35k to build doesn't always add $35k value to the property. If you had $15k of that in cash you might have a chance at borrowing the other $20k. Lenders are going to see your recent house and car purchases and think "spending spree". Car loans are a completely different kettle of fish to a construction loan.
Can you buy a used building and erect it yourself? I know it's a pain with a stick built but are steel frame buildings common in your area? Over here you'd get a full steel frame industrial building twice that size for less than 10k. They generally bolt/screw together making them easy to pull down and reassemble.
Can you buy a used building and erect it yourself? I know it's a pain with a stick built but are steel frame buildings common in your area? Over here you'd get a full steel frame industrial building twice that size for less than 10k. They generally bolt/screw together making them easy to pull down and reassemble.
Last edited:
Wow... My intentions for this thread was not to be bashed about my ability or inability to come up with funding for such an investment. But hey, it is the Internet. I have also never purchased a new car and never plan to. I have quite a few investments and am doing pretty well financially speaking.
Just looking to cut one endless fund and secure it into another. Thanks for posting though.
Nobody is trying to bash you, they are merely looking out for your best interests. 90-95% of the guys (gals) are going to give you good or well intented advice from past experience.
Have you made any contact with an amish builder ? Personally, I think the amount you quoted is high, but your site may require a large amount of fill or excavation bringing up the advice.
dreesemonkey
Active member
- Joined
- May 11, 2012
- Messages
- 43
I see you're in PA, have you looked into any Amish contractors? Not sure if you have any local but they're hard working guys.
Not sure the exact dimensions but some home owners a few miles from my house got a ~30x40 "barn" style pole building w/ large RV garage door built with concrete pad for the mid 20s. It's very nice looking and they had a garage sale there one day and we went there to nose around.
edit: Haha, Nuttsgt had the same idea
Not sure the exact dimensions but some home owners a few miles from my house got a ~30x40 "barn" style pole building w/ large RV garage door built with concrete pad for the mid 20s. It's very nice looking and they had a garage sale there one day and we went there to nose around.
edit: Haha, Nuttsgt had the same idea
Last edited:
RedBKM
Well-known member
I ran into issues back in 2004 when I was trying to finance my home. All my credit was great but not old enough. The banks like to see established credit for 5 plus years; I was 20 at the time. Banks are even tighter now.
I financed my shop with Virginia Farm Credit. Check your area for ag related financing. The only requirement is that you own enough ag related land which may or may not work for you. You might also check your local credit union.
That price is high in my opinion. How much can you do on your own? A friend of mine hired a pro to set the poles, roof trusses and install the roof. He filled in the walls and prepared for the floor. He saved 1000s by doing all the easy but time consuming stuff.
I financed my shop with Virginia Farm Credit. Check your area for ag related financing. The only requirement is that you own enough ag related land which may or may not work for you. You might also check your local credit union.
That price is high in my opinion. How much can you do on your own? A friend of mine hired a pro to set the poles, roof trusses and install the roof. He filled in the walls and prepared for the floor. He saved 1000s by doing all the easy but time consuming stuff.
2012 LML
Well-known member
Your best bet is going to be with a local bank, if they can't help you, it is what it is.
Outside of that, you'll likely be paying high interest on unsecured debt.
How much cash are you looking to put into the new building or are you looking for 100% financing?
Exactly how much equity do you have in your home?
What is ROI you are getting with your investments?
We hardly have enough information to give you informed advice.
Outside of that, you'll likely be paying high interest on unsecured debt.
How much cash are you looking to put into the new building or are you looking for 100% financing?
Exactly how much equity do you have in your home?
What is ROI you are getting with your investments?
We hardly have enough information to give you informed advice.
I'm going to give you the rope, but it's up to you not to hang yourself with it.
If you can't borrow the money from the builder or the bank then borrow it from yourself. do a google search on how to borrow from your retirement savings (IRA, or 401).
can you make mortgage payments with a credit card? if you can then you can always pay your mortgage with your credit card and pay for your new building with the cash you would have sent your mortgage company. this will only work until your credit cards are maxed out.
you could also contact your utility companies and see if you can sign up for a payment plan then use the extra cash flow to help finance your new building, you can ask them how many months you can go without payment before they shut you off. You could probably get at least 3 months of your utility bills to go toward your new barn.
skipping or short paying some of your current loans is another way you can raise cash.
doing all this will ruin your credit rating, but it won't matter because you'll have your new building, and you'll eventually pay everyone back. you'll look like a deadbeat on paper but it's one way to get the cash you need to build your building.
good luck
If you can't borrow the money from the builder or the bank then borrow it from yourself. do a google search on how to borrow from your retirement savings (IRA, or 401).
can you make mortgage payments with a credit card? if you can then you can always pay your mortgage with your credit card and pay for your new building with the cash you would have sent your mortgage company. this will only work until your credit cards are maxed out.
you could also contact your utility companies and see if you can sign up for a payment plan then use the extra cash flow to help finance your new building, you can ask them how many months you can go without payment before they shut you off. You could probably get at least 3 months of your utility bills to go toward your new barn.
skipping or short paying some of your current loans is another way you can raise cash.
doing all this will ruin your credit rating, but it won't matter because you'll have your new building, and you'll eventually pay everyone back. you'll look like a deadbeat on paper but it's one way to get the cash you need to build your building.
good luck
Mike14k
Well-known member
I've got a 24 x 60' building, steel with 4" insulation. 10' side walls, concrete floor, (10) 3' windows down the sides. About $20k. Your price seems a bit high.
Saved for a couple years, paid cash. Only way to go.
Saved for a couple years, paid cash. Only way to go.
Modifieddriver
Well-known member
Whatever you do, do not destroy your credit rating, it's not worth it in the long term of things.
Banks are very careful when lending money today. I've found that they make decisions, and rightly so, to protect their investment. As a single guy back in the 70's I purchased my first house. I had a job as a teacher, so that was considered a low paying but "solid" job and was also an officer in the Army National Guard with more "solid" income. The loan qualifications were very conservative. My income wasn't enough to qualify. So I had to exaggerate (lie ?) about additional part time unreported income. I got the loan, and because I didn't have to worry about "family maintenance funding", the payments were easy to make. Might be the same, or even easier today. So, be creative, but make sure you're not jumping over the financial cliff.
As for the building, I use as a gage that a dried in pole barn building with concrete should be no more than $10-$15 per sq. ft. Price depends upon what options you have. No frills is what you need right now. Nice feature about pole barns is if placed on the lot correctly, adding on is easily done when funds are available. The building price quote you received seems to be TOO HIGH. How much was allowed for site preparation? A 40' x 40' @ $15 per sq. ft. is $24K. Somebody is getting rich at your expense. Better shop some more. Maybe the cost for what you're trying to do is why you aren't getting a loan approved?
After price shopping some more, I'd still build it, even less concrete, to just get started. I'm not one of those financially conservative, wait until I saved ALL the money saved up. I tried that back in the early 80's. A person couldn't save fast enough to keep up with inflation. When this low interest bubble bursts, you'll be happy to have a low interest rate loan. There's a good reason why there's banks, and that's why I use them. Only problem with some folks is they forget that after you borrow, you are obligated to pay the $money$ back. Like I always tell my buddies, "I'm not going to let a little thing like money get in my way of doing something", especially when I see something I really want that's a bargain.
I'm doing a 3,600 sq. ft. pole barn build right now (see gallery section). I borrowed the $dough$. I have "good stuff" to sell that'll cover the building cost, but I'm not going to short sell "good stuff" or pull money outa' my 401k when interest rates are at an all time low. Doesn't make financial sense. AND, I must be doing something right 'cause my credit rating, verified for this loan, was in the top 1%. Makes me wonder what kinda' financial decisions the other 99% are making
. It scares me to even think about it. Again, if you owe, pay it back, and make sure you're doing it "ON TIME".
Last edited:
mtwaterguy
Well-known member
- Joined
- Nov 16, 2007
- Messages
- 3,518
Even with the caveat, this has got to be the worst piece of financial advise I've ever seen.
Automatic Slim
Well-known member
high kurumbya!
Last edited:
classic boost
Well-known member
harner,
check out polebarnsdirect.com. you should be able to get a 40x30 with concrete for under $20k. they service pa and they use amish workers. VERY happy with my pole building.
check out polebarnsdirect.com. you should be able to get a 40x30 with concrete for under $20k. they service pa and they use amish workers. VERY happy with my pole building.
i agree it's some pretty bad advice.
but he's a grown man and he asked HOW to get funding, not IF he should get funding.
so, here is some more bad advice:
Pawnshops.
pawn all your tools, some will even let you pawn your vehicles.
Payday Lenders.
most states have payday lenders where you can take out short term loans.
there are also websites out there (i won't mention any by name) that you can state your case and people will lend you the cash. google search "peer to peer lending"
again this is very bad advice.
good luck
justanengineer
Well-known member
^^^Very good point. What youre trying to finance really is a white elephant of sorts, so you should expect the various financial institutions to treat it as such.
Not trying to bash you, but if you cant save $20-30k cash in a year or so, you really arent doing that well and frankly IMHO you cant afford your toys. Personally, Id suggest selling the toys, saving a year or two, building the garage, then consider buying a toy or two after youre a bit better established. Not sure what youre planning with 5 vehicles, but if youre going to be doing any work a 30x30 really isnt much more than a comfy 2 car garage.
Last edited: