next guy or gal is in the republican field and they have to did do what they have to do to shut the republican border you can talk about illegal amortization. only after you secure the border. the idea that it is some pie in the sky idea is ridiculous. the israelis built a fence that protected that decreased terrorism by 90%. the jordanians are building. everybody builds fences. if fences didn t work, why is there one at the white house? no argument. now there is momentum to get stuff done and we have to get it done. charles, thank you. new age he addition right back.
through the roof. why not go and essentially use your home as a credit card? a home equity line of credit is that. you take out, you have a credit limit but you are able to use it as you want for any number of projects to start a business, pay off credit card bills. people did crazy things. this is the 10th birthday, and at that point the drop period when you just pay interest turns into amortization and the payments can double. when you sign that loan, you are like, well, i get the money to work with and do not realize in 10 years you better pay that off or the interest rates will skyrocket. right? the other thing is, back then you thought my housing prices are going to go up and up and up and they don t so you have less equity.
will pay for it? exactly. baseball cards, houses, businesses, the same thing u. might have a number in mind but it might not be what you get. let s figure how to get a number to start with. a couple components obviously. the first is it s based off of a multiple of your company s cash flow. the more cash flow your company generates the more valuable it becomes, the faster it generates cash the more equity you build and the more desirable that equity becomes for a perspective buyer of your business. yes. talk to us about ebitda. what you will probably look at is a multiple of or ebitda. what that is, tell us what it is and where you find it. exactly. cash on ebitda, synonymous. you basically go to your income statement, find net income, add net income plus interest expense plus taxes plus depreciation and amortization expense and that ebitda number represents the pool account to service the
sba loan, is there a benefit? sometimes you have no choice. is there a benefit. the sba 504, if you are buying commercial real estate, you can put 10% down, because there is less risk for the bank because the government is basically co-signing the loan. they are willing to go further, so the amortization will be farther out and you can put less equity down. the 504 is much better if that s important to you. people have the misconception that the rates are cheaper with 504 but that s not necessarily true. it s a great product if you are eligible. are there any down sides, more paperwork? there is a lot more paperwork. sometimes the rates can be higher. with an sba loan it is generally a floating. there are some down sides but a lot more up side. when you go in, the banks can take a little bit morris can on you but you are still going and you are applying for a loan from the bank. so some things you need to look the a. you say, first, make sure you are in good standing with the
put 10% down with an sba loan. because there s less risk for the bank because the government is basically cosigning the loan, they re willing to go a little bit further so the amortization will be farther ert out and you have to put less equity down. however, people have the misconception that the rates are always cheaper with sba but that s not true. so it depends what you re looking for. i would say a lot of times the sba is a great product if you re eligible and you can get it. are there any downsides? is there more paperwork? does it take longer? there s a lot more paperwork. sometimes the rates can be higher. is the sba 7-a loan it s generally a floating interest rate. i think there s a lot more upside. when you go in the banks can take a little bit more risk on you but you re still going and you re applying for a loan from the bank. so some things you need to look at. you say first make sure you re in good standing with the state. that s right. a lot of people don t reali