>>>most mom and pops are totally or paritally owner financed, because of several reasons, banks either won’t touch or wnat substantial down, AND there are often two sets of books, one for prospective buyers and one for paying taxes. Then when the bank wants tax returns, guess which books they get.
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As with any business i would do a lease option with the current owners for 2 years. Of course I let them do some inspections throughout the year and make sure Im taking good care of the establishment. I did this a a few years ago with a pizza shop and realized soon that it was not a business for me. So after 24 months and making back my option money. I gladly handed them back the keys!
I am kind of new to the commercial side and I have a deal in which a group of people are looking to buy a motel with a couple of cabins in upstate NY. The purchase price is about 1 million. Property is worth about 1.25 million.The people buying it have about 200k in equity in their owner occupied residence and the credit is fair at best. There are 20 rooms along with the two cabins. The property generates about 200,000 a year and costs about 45 to run(or so they say). Still either way there seems to be a ton of cash flow involved. I need some ideas, ie is this deal even doable, what the cheapest financing would be, and where would i go to get the private money financing. Please post any helpful info here or you can email me directly at jglubin@triumphfundingcorp.com
thanks for your help, look foward to hearing from you
Posted by David Krulac on December 02, 2005 at 15:37:19:
most mom and pops are totally or paritally owner financed, because of several reasons, banks either won’t touch or wnat substantial down, AND there are often two sets of books, one for prospective buyers and one for paying taxes. Then when the bank wants tax returns, guess which books they get.