Help buying Restaurant/Bar/Pool Hall

crbbjrjp

I am currently looking at buying a property that is a restaurant, bar, and pool hall.  The owner has owned the property for 16 years and is looking to sell because he has started a new business in a different line of work and feels that the business is more of a liability than a benefit as he is no longer running it on a day-to-day basis.  The owner is willing to show me all his books and anything else I would like to see. 
He is selling the business as is and is only taking out a few little centimental things.  It has recently been remodeled and has a grill, 20 Brunswick pool tables, a new POS that he paid between $30k and $40k for, and many other things.  He has average revenue of $750k and estimates profit of running it yourself of $175k.  He is only asking for $300k.
I have one investor that I know who owns a few bars in a different state that is interested in investing a good little amount in it.  I am looking at taking out a loan of $400k to help get started and have contacted a banker but have not heard anything back from him yet?  What are my next steps?  I am guessing on doing an LLC with an SBA loan.  Any ideas of what I should be working on why everyone else is taking forever? 
Although I don`t believe I will need any, I am interested in anyone who would like to be an investor in the business.

JoeCT

See if the owner will take back a partial loan on the business.  If you can come up with 10 or 20% down payment and finance the rest that seems like the best solution and the fastest. With that kind of structure if the numbers are that good, you can agree to pay him a nice interest rate on say a 7 year loan. Maybe even offer him $325,000 if he will agree to the financing. Most importantly, check his numbers thoroughly and make sure there is not another reason for him selling, like another restaurant or bar moving into the area or major improvements needed on the building, etc.

crbbjrjp

Thanks for the advice JoeCT.  I am going to talk to the owner tomorrow and for all I know at this point he may be interested in owner financing.  If not it looks like I may need a few investors.  The facility is newly remodeled and looks VERY good.  I have already checked, and there is no new businesses I can find that is moving into the area that would cause competition.  If anyone is interested in investing please reply and I will give you pictures, the books (As I should have them tomorrow), and anything else you are interested in seeing.  I will be most likely willing to pay a straight percentage of profit on ownership.  I am estimating an annual return on investment of 30 plus percent!  This place is honestly a steal and that is why I am being very vague on details.  I am looking for no more than $100,000 in investments and will take increments of $5,000.  As I stated, just let me know and I`ll get you details.

robertj

You might want to get some "good" advice from a knowledgeable source about the sales of securities - before you go too much further along the investor path.

crbbjrjp

I have my brokerage license.  I am more looking for silent investors than anything else.