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    4 Replies Latest reply on Mar 18, 2009 9:01 AM by wilfin

    Loan or Investors

    fuddrock Newbie
      I am looking to purchase a car wash/lube center. Sale price is 1.8 million. I have secured $900,000 through liquid assets and seller financing. I am looking to obtain a loan for $900,000. The businees grosses 1.3 million with a net of $495,000. The wash has had the same owner for the past 20 years, and I have the financials from the business dating back 5 years. I have car wash/lube center experience as a friend currently owns one and I have worked for him off and on over the years. Any ideas or suggestions to obtain financing???
        • Re: Loan or Investors
          bmt2008 Adventurer
          If your credit is good - try an SBA loan. They should like everything about your deal - as you explained it here - focus on your equity and your experience. Go to your favorite bank or any bank in your area and ask if they do SBA loans.

          Could also network in your area. Attend networking events (this means any event where more than one person gathers). Start talking to people - don't pitch - just talk and listen. Look for CPAs or Lawyers or even Doctors. The CPAs and Lawyers are usually the gatekeepers for local investors. Don't pitch - but when they ask what you do - tell them you are in the process of purchasing a business that has excellent potential and that you have half of what is needed and are looking for the other half. If they know someone - they will tell you - then ask for an introduction.

          With the Doctors - these people usually have money and no where to put it to earn a decent return. They like to invest locally and they like to get together and pool their money to do so. Not only are they looking for returns - but for bragging rights as well as to show a kinsmanship with their colleagues.

          Just some thoughts
          • Re: Loan or Investors
            LUCKIEST Guide
            Loan or Investors, Welcome

            Who are you?? (Like a first name??) Ideas / suggestions - - If you need to raise money to purchase a business, you need to develop both a Business and Marketing Plan.

            Do you know about SCORE?? SCORE is FREE and can help you with the plan.

            Good luck, LUCKIEST
              • Re: Loan or Investors
                fuddrock Newbie
                I have a business plan put together, just looking to see the best way to look for a loan. Some banks that I have called said they will only do the loan if real estate is involved. Unfortunately this business leases the property, but has a 20 yr lease with option to buy property, after 10 years.
                  • Re: Loan or Investors
                    wilfin Adventurer
                    What "skin" can you put in the game? Investors nearly always want a higher equity stake.
                    What can you bring to the table? Where there's a will there is a way. You can check out
                    my profile if you like and give me a call or shoot me an email and it's possible I can help
                    you. Thanks.