Client asked that I find an existing business that has cash flow of over $500K year. Client states that he can put together at least 1M to invest in the business.
Found an ongoing business enterprise that is selling for $2,200,000
that states it generates $600,000/year with the expansion can generate $1,500,000/yr at full capacity. It is an elder care facility. I signed a non-disclosure so that is all I can say regarding that part of the business.
Would we perhaps offer a 1031 exchange for a residential rental property for this business. The owners of the business live in Los Angeles and the business is in Sacramento and also the houses. One of the reasons they are selling the business is because of the distance…So I don’t know whether they would be receptive to this offer.
Should we ask the owners to carry the 1,200,000 left for five years;10 years haven’t dealth in this arena before and dont really know what to do get a commercial loan - feasible? This business will operate under an LLC from my client’s perspective.
So what do you think? How would you or would you pursue this