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Before you choose this risky method of financing, use this checklist to determine if it'll work. August 19, 2002 By David Newton How do you figure out if it makes sense to take money from one's personal residence to fund business activities? Let me say first and foremost, funding any business activities is always inherently risky, regardless of the source of the funding for the venture. Second, owning a home is a great American dream, so doing anything that puts that residence in jeopardy of foreclosure must be carefully considered. With those two things said, there is a way to clearly understand how a loan funded through a personal residence could provide capital for a business.
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