Not sure if this is the right place to post this or not?
I read the postings all the time but have never registered till today. running out of time and options, looking for ideas on where to get money to buy a pizza establishment, has been in business for 23 years profits $2550/wk the current owner has cancer and wants to get out. the problem that i’m having with getting the money is I’m buying the business and not the realestate. Need $ 150,000 willing to payback within 1 year $160,000 with monthly payments of $1600.00 any suggestions.
thank you
I have actually tossed that idea to the owner, however, he has stated he wants to liquidate everything due to his cancer so he isn’t leaving behind any unsolved issues that may burden his family.
Gotcha. Well you might be able to find private money cheaper than hard money so that might be the best bet. Try going to your local REIA meeting and see if there are any investors that might take you on to loan you that much money. The one thing I see though is that with only a $10k profit theres no way hard money or private lenders are going to do it, you need to give them back a better ROI than that, they can make that much money dumping the money into a CD or money market account.
$1600/mo for 12mo equals $19,200 + an additional $10,000 at the end of the year. It looks like to me it adds up to $29,200. Maybe I wasn’t clear on my original posting.
Yes, I do have collateral, I own 2 Rental properties.
If the seller owns the property free and clear, could he sell it to a relative (quit claim for $1), then you create the seller financed mortgage to the new owner.
If timing is an issue for you, then I imagine it is for him as well. I think you have a great opportunity to work out something creative there with the seller. You just have to solve his problem.
What is he going to do with the money when he gets it? Can you figure out a way to produce the same results without any probate issues after he passes.
Just a thought.
If you go with private/hard money, you can expect to pay 12% or more interest, and usually 2 or more points. So your expectations of $29k in fees is pretty close to accurate.
Look in the newspaper for classified ads for private money. They are everywhere. Loan demand is a big problem right now for private mortgage investors and they are all looking for solutions to place money.
I missed where you mentioned that you are only buying the business and not the real estate. That changes everything. I don’t know of anyone that would give you a private mortgage on just the business. That is a large risk, unless they can cross-collateral your rentals.
