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    5 Replies Latest reply on Feb 24, 2010 12:15 AM by cschmitt11

    Purchasing an exsisting historic tavern

    Privatename Newbie
      First off i will introduce myself my name is Donny i live in Central Illinois and I am a 28 year old single male with an interest in an exsisting business. I will get my credit out first I have large gaps in my 3 bureaus mainly in the experian sector. My score raises daily and I only have about 4 negatives on my trans and 2 on my equifax with about 15 on my experian (id theft but experian is giving me hassles) anyway my scores are in the 620s respectfully raising everyday and hopefully stay that way. I do not have any real estate and only debts i have are vehicle loan (current for 2 years), student loans (current for 3 years), and a credit card (current for 4 months) altogether about $550 in debt per month. I currently rent but am looking to buy a home and here is where the plot thickens.

      There is a historic tavern on the main road in the town I grew up in approx 3k population with several other towns and a medium town 45k within 10 miles. The tavern comes with all equipment, gaming, stock, and etc. The owners are getting out of the business after more than 30 years in the same location. The bar is located right next door to another bar that is the town hot spot. Both bars are open 7 days a week and open until at least 2am everynight. The bar I would like to purchase has 3 apartments on the 2nd floor all rented at this time which will be included with the sale of the business/building for $95,000. I don't know where to go next. My grandfather, father (both war vets) and my mother would like to help me get this going however none are wealthy or have large amounts of cash. Most would fall in the credit score as mine however my grandpa recieves pension and ss benefits of about $2500 monthly. I do have a job in my degree profession and make pretty good money. Any ideas on what I could or should do next to make this a reality. Thanks in advance
        • Re: Purchasing an exsisting historic tavern
          LUCKIEST Guide
          Purchasing an existing historic tavern

          I would start by doing to things. One: Visit SCORE. SCORE is FREE

          Two: Develop a business plan.

          *Good luck*<!--Session data-->
          • Re: Purchasing an exsisting historic tavern
            cschmitt11 Newbie
            Have you spoken with an attorney about this possible investment? Also it sounds like you need to do some valuation work on the current business in place as well as the real estate. With that information it will be much easier in your talks with banks/and or investors as it sounds like you do not have the startup capital necessary for the purchase. You need to speak to an attorney in your area, it may be determined that you can tie this all together as a real estate purchase an therefore will only need to come up with a percentage of the cash. Contact me privately for some help in this area.
            • Re: Purchasing an exsisting historic tavern
              alytus Scout
              you should have your family pay off your current debt, this will increase your barrowing power with the bank, and a good buisness plan.
              • Re: Purchasing an exsisting historic tavern
                phanio Pioneer
                Unfortunately, in this very tight credit market, with a score that low, very few lenders will even talk to you let alone consider your deal.

                Options you may have:

                Ask the current owners to carry the note. If you can come up with say 10% down, finance the rest through them - example, take the remaining 90% of the purchase price - amortize it over 20 years to set your month payment - then include a 5 year balloon portion. Thus, in five years, you would owe the owners the remaining amount at that time. But, this five year period gives you time to increase your wherewithal and creditworthiness to either get a bank or SBA loan to pay them off.

                Find a local partner or investor with the strenghts you are lacking to co-sign or cover the purchase.

                Give up on purchasing a business now and focus on fixing your credit - thus when you do buy or start a business, you will not face this issue again.

                Business Money Today
                http://www.businessmoneytoday.com
                • Re: Purchasing an exsisting historic tavern
                  cschmitt11 Newbie
                  If you still need help, contact me at chrisschmitt1@gmail.com