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Buy a business with no money down...

cugelertcugelert subscriber Posts: 7
edited September 2006 in Startup Funding
Hi everyone,
Listen, there is so much talk on the TV and radio about how people buy homes with no money down... but there isn`t a single thing about how to buy a business with no money down... I need some strategies if anyone has any for a brick and mortar outlet.  There has to be some info somewhere someone used at one time or another...
Like quit claim deeds, etc...
Please, if you have some ideas I can use to buy this business fast and put cash in the owner`s pocket before it sells to someone else, I`d sure appreciate it...  Thanks.
Jerik
PS  Some specs are... asking 375,000, grosses 725,000, nets 200,000.  No existing loans or leins on business.
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    EllayEllay subscriber Posts: 6
    I would like to know about this also. I hope someone posts. I`ll be checking my email for replies.
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    cugelertcugelert subscriber Posts: 7
    Hi Ellay,
    To tell you the truth, I once went to a 3 day seminar called Bizar Financing about 20 years ago when leverage was a popular thing.  They covered quite a few strategies but its been so long, I don`t even thing I have the notes and course anymore.  So, yes, I definitely know there are strategies out there.  Its just not available these days.
    Take care, Jerik
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    cugelertcugelert subscriber Posts: 7
    Hi Ellay...
    I just found some info cruising the net by accident.  Go to www.bcentral.com</A> and click on finance.  They got 5 pages of all sorts of info, not to mention other catagories.
    Hope it helps... jerik
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    SnowflakeManSnowflakeMan subscriber Posts: 3
    Hi Guys
    One of the best ways I ever heard was where the owner agreed to a payment schedule for the business albeit at a small premium.
    In short (and very simplified) If a business owner wants to sell you the business for $10,000 and it has a proven cash flow then you could agree to pay the owner $1000 per month for 11/12 months netting him the asking price and $1-$2k for carrying the finance. The positive thing for the owner is they still have the business to sell if you default (indefinitely) on the business.
    Needless to say - an attorney is essential
    Best of luck
    Lee
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    cugelertcugelert subscriber Posts: 7
    That is a great idea and the basis for my original one, but with a twist...  You see, I thought up a way that could get cash in his hands at the same time if I factored in a lender to your suggestion.  It goes like this...
    Owner co-signs for a loan for me using the business for collateral.  He takes the money and I pay the loan off with the same default contingencies in place.  After all, the numbers I`m working with are much bigger than $10,000.
    to be more specific...
    1.Owner is asking $375,000.  2.Gross annual is over $735,000.  3.Net annual is $200,000.  4.Estimated value of business is $410,000.  5.It is free and clear.  6.Property is leased (no real estate).  7.Owner will take $350,000 cash right now.
    So thats why I decided to try and see if I can get a lender involved, since he`s looking for cash, but I want another angle in case this isn`t feasible.  You know, like maybe the lender won`t agree to these terms even if the owner will, etc.
    Jerik
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