| Author |
Message |
Jeff (Jeff_m)
Junior Member
Username: Jeff_m
Post Number: 57
Registered: 9-2002
| | Posted on Saturday, January 18, 2003 - 8:12 pm: | |
David,
I deal with this quite often and sad to say,no collateral-no loan. However, there are things you can do such as raise the price to 1 mil and have the owner say you gave him 200k down from your own funds and you are looking to borrow another 200k to have 40% equity. Usually they will want to see bank statements showing the transfer so you will need to have a good relationship with the seller to "run Money" through his acct. but it can be done. After all though, you must do the due diligence to check all numbers you were given to insure that the business is doing what they say. I have seen it all so be very careful.I would say there are many franchises out there that would require way less down with great histories. |
David A. Spear (Detailman)
New member
Username: Detailman
Post Number: 39
Registered: 5-2002
| | Posted on Saturday, January 18, 2003 - 12:07 pm: | |
Thank you guys youve been helpful looking for any advice anyone could give. |
j scott leonard (Jscott)
Member
Username: Jscott
Post Number: 276
Registered: 1-2002
| | Posted on Saturday, January 18, 2003 - 8:33 am: | |
Get a good CPA and business attorney!!! They are worth every penney you will pay them. In addition, seek counsel from experienced, successful advisors you trust that both know you and the business. It is a big step, don't do anything without a true due diligence. It is like buying a used Ferrari, do a quality PPI. May be tough to get a loan for a down payment. I was a banker for several years and never made a loan like that. Check out an SBA loan. They usually require less of a down and have longer terms. |
Jason Williams (Pristines4)
New member
Username: Pristines4
Post Number: 10
Registered: 12-2002
| | Posted on Friday, January 17, 2003 - 7:25 pm: | |
What kind of business?
Do they have a good history?
Have you ever worked in the feild before?
Are you going to manage it yourself?
What's the revenue outlook for the next 5-10 years?
What's the yearly operating cost?
Granted, I've never purchased a business, but I have started a number of them.
If you can answer those, I could probably give you a better answer. :-)
Jason- |
David A. Spear (Detailman)
New member
Username: Detailman
Post Number: 38
Registered: 5-2002
| | Posted on Thursday, January 16, 2003 - 12:14 am: | |
I am Interested in buying a small bus. to personally own and operate the price is about 800k. I have never bought anything such as this besides a home, (which at the I had no money and was able to buy the home without putting up any money up front .) The owner agrees to finance 80% but I would have to put up front the remaning 20%.Has any one ever gone through this process and would a bank laugh me out the door for asking for the down payment for an owner finance deal with no collateral? |