Results 1 to 14 of 14
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02-06-2014, 05:49 PM #1
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- Apr 2013
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- Basalt CO
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New Owner Restaurant looking for funding prior to owning
So,
Have a merchant who is looking to purchase a long established restaurant and he needs 60k at closing (obviously there are time of ownership issues here since he will not take ownership till closing).
Any one doing deals where we can underwrite them based on current processing and bank statements, and then fund them at closing? Underwriting would be based on the new owner.
I hope that made sense.
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02-07-2014, 07:00 AM #2
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- Jan 2013
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- 151
New Owner Restaurant looking for funding prior to owning
How much equity is the new guy bringing to the closing.
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02-07-2014, 10:56 AM #3
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- Sep 2012
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- New York, NY
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- 1,780
If you find a lender who will do this, let us know. I've never seen it happen unless the previous owner agrees to sign all the loan paperwork and not tell the lender he's selling the place. Once a new owner takes over, the previous months of sales activity is not really applicable. The new owner can drive the place to the ground.
Last edited by MCNetwork; 02-07-2014 at 11:04 AM.
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02-07-2014, 11:34 AM #4
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- Denver, CO
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02-07-2014, 11:46 AM #5
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- Feb 2014
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- Long Island, NY
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- 9
Ditto on all of the above. It's not really the intended use for a cash advance product. That deal gets done as an SBA loan all day long, and he's going to need some of his own funds/equity... 'skin in the game' to do the deal legit.
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02-07-2014, 11:49 AM #6
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02-07-2014, 12:19 PM #7
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- Jan 2014
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- Denver, CO
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02-07-2014, 04:24 PM #8
I've done this before when....
1) previous owner signs on as guarantor
2) you provide a copy of purchase agreement
3) all usual data needed for submission is sent (bank, CC, P&L, etc)
4) usually the resume of the new owner is required too (want to make sure the new guy actually knows how to run the business, has experience, etc)
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02-07-2014, 07:51 PM #9
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- Jan 2013
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- New York City
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- 409
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02-10-2014, 01:01 PM #10
Provided they meet and are willing to come in (both owners) with the above listed criteria
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02-10-2014, 04:15 PM #11
Chambo; What company do you represent?
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02-11-2014, 11:35 AM #12
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- Apr 2013
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- Basalt CO
- Posts
- 867
he is bringing 260k to the table. I know about the fraud clause. And i also know that the old owner would have to sign off on all the docs, like an owner finance deal.
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02-11-2014, 04:45 PM #13
- Join Date
- Dec 2012
- Posts
- 116
Rapid has done these deals. They are riskier and require a more thorough underwrite. The key is how much cash does the buyer put in. Too many of these deals the new owner is just taking over with payments from cash flow.
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02-12-2014, 06:56 PM #14
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- Jan 2013
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- New York City
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