[Finance1]

Would it be necessary to cross collateralize? There would only be one loan, and putting up the existing business-property to secure that loan.

If there is enough equity in the existing property to take out $800k cash and still have 30-35% equity leftover then it could potentially be done that way for sure. If there is an existing mtg on the property it would have to be paid off with the new loan as well.

There are some interesting ways to do hard money too. You can pull the first 12 months of payments out and have them held in escrow by an attorney so the first 12 payments are guaranteed to the investor. Max terms are typically 2 years and a solid exit strategy. It's been a while since I did a deal like that but I doubt it's changed much. Hard money is not a long term financing type. 1-3 years max.