Hi I am Jason, quite a new investor, but I am trying to make a difference in my life by getting out of the rat race.
I thought I would get people assistance with a problem I have at the moment.
I am trying to buy a well known franchise, located in a shopping centre. The franchise is worth about 350k. The return (apparently net profit) is around 125k per annum.
I should not have a problem getting a business loan for this business given this return and it’s already an establish francise with business financials in place. The problem is I need a deposit, of around 140k. I just don’t have this sort of money.
Has any one been in the same position and know a way around this problem? Does anyone have any ideas of what I could do to come up with this sort of money?
Thanks in advanced guys!!
Jason,
Welcome. I had alittle think and while never being in the same position one idea came to mind. What if you asked the owner to vendor finance you into the business. Ask them to finance you the $140K at an interest rate you negotiate. The rate is up to your negotiation skills and or need.
Hope this helps.Enjoy
AD [:0)]A great deal of talent is lost to the world for want of a little courage. Every day sends to their graves obscure men whose timidity prevented them from making a first effort.
-Sydney SmithG’day Jason,
Have you considered the option of vendor finance for the $$$ you are short. Sometimes this is the only option for some sellers to achieve a sale at the price they are asking.
Vendor finance is when the seller agrees to leave some money in the deal, usually at a higher interest rate, for an agreed period.
There are lots of issuses to consider and you should seek the opinion of your trusted financial advisors……
Good luck and make sure you go in with your eyes wide open, don’t be dazzled by the dollars…..
Cheers
watto
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