In many instances, this is the easiest and surest way of getting the money needed for franchise or other business investment. And, it makes sense. Take this equity and invest it in a worthwhile business, and you could double or triple your net worth each year for the rest of your life. Deciding to obtain a second mortgage on your home in order to finance a business opportunity is without doubt a major decision, but if you are sure about your investment project and are determined to succeed, you owe it to yourself to go ahead. You could incorporate yourself, borrow money from your family through a second mortgage on your home, and protect against the loss of your home through the Federal Homestead Act.
All business opportunities involve risk and sacrifice.
It's up to you to determine the feasibility of your success with your proposed venture, then decide on the best way possible to proceed. You can have the franchisor sign with you, one of your suppliers, a business associate, or even a friend. Oftentimes, you can borrow or rent collateral such as stocks, bonds, time certificates, business equipment, or real estate, and in this way give greater confidence to the lender in your abilities to repay the loan. Whenever you can show a contract from someone who has agreed to purchase a certain number of your products or services over a specified period of time, you have another important piece of collateral. Another possibility might be to get a bank or a firm that has loaned you money in the past to guarantee your loan.