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We want to buy a restaurant
Who r u?? Go to Members page and share some info.
Start with a business plan. If you are looking for capital, a business plan is one of the first items a lender or investor will want to see.
Do you have a business plan?
Do you have any experience working in a bar/restaurant?
Have you talked to local rest owners to get advice and insight?
Do you have funds to put towards the purchase? (20-25%)
These are just a few of the questions that you need to answer to get started.
20-25% OF YOUR OWN MONEY, in what universe do you live in. Try more like 85%-100%
You buy a restaurant and problem of financial then you consult with financial institute or other financial office. You also search on net.
Good luck with looking for financing. Grants, no such thing to the average person, SBA, Well they're a lot of help with info, and can lead you to banks that support sba loans, but it's still up to the bank to approve it, the sba backing means nothing to the banks.
I got fed up with the whole racket, and because I have good credit took out a personal loan, that was the last straw, and that's what it took.
here is a little tip from my (bad) experience.
when you find the investor for your bussiness, first of all be carefull who you chose, and make sure he is an ohnest man.
then be sure that your name is on all the documents you sign with this guy, and with the restaurant owner.
you can never be too carefull.
I can tell you from my 11 years of experience helping people sell their restaurants that most sales are made possible because the seller is willing to finance the deal. The poster who stated you need 85-100% is a little too high and the poster who said 20-25% is stating a best case scenario.
I've seen many deals where the owner refused to finance any part of the deal ...... at first. But after a few months of finding no all-cash buyers they get much more flexible. You stated that the seller is tired and wants to retire. My bet is that in a few months he may be more willing to finance part of the price than he is today. If there is something special about this business and it is the one you REALLY want, you may have to be patient.
Regardless, you are going to have to put some of your own money into the deal. Let's say, hypothetically, that the seller did finance 50% of the sale and you got an SBA loan for the rest, which would mean you will be paying back both loans simultaneously. Most small businesses don't generate enough income each month to pay off the entire purchase price plus give the owner something to live on.
To find restaurants for sale that offer owner financing you can go to: http://www.thebizseller.com/restaurants.htm