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    2 Replies Latest reply on Jun 19, 2008 12:45 PM by lk3bw6

    Need help to purchase business

    lk3bw6 Newbie
      I have an opportunity to purchase a business that has a good start with great potential. The business is a food service business in California that netted over 80k in it's second year and is on track to net over 100k in the third year. I only have 10% to put down, so I need a 90% loan for 3 years. We are not in contract yet so I don't have an agreed upon price, but they are asking 180k. My mid range FICO score is 692.
        • Re: Need help to purchase business
          LUCKIEST Guide
          Need help to purchase business, Welcome.

          Tell me more. Who are you??, Where are you?? like a city, Calif is BIG??
          What is your background?? Do you have a Lawyer?? An Accountant??

          Have you developed a Business and Marketing Plan that i can read??

          How long do you need the funds for?? And How and When will o get paid back??

          LUCKIEST

            • Re: Need help to purchase business
              lk3bw6 Newbie
              I am in Sacramento CA. My background is in Telecommunications. I have been a Telecommunications consultant for Siemens for the past 3 years. I analyze data and manage projects. The last retail position I have held was more than 20 years ago, so I am lacking in experience there, but I know how to manage people and resources, as that is what I do every day. I have not gotten a lawyer or accountant at this point but intend to. I am currently working on the business and marketing plan and should have it complete by tomorrow, as I will need it to apply for a loan at B of A.

              I can go two ways with the funds needed, here are the terms I'm looking for:

              1) Obtain the full $162,000 from one source at 8% interest with a monthly payment of $5,077; no prepayment penalty

              or since the seller is willing to carry $62,000 with $100,000 down...

              2) Obtain $100,000 from one source at 8% interest with a monthly payment of $3134 and obtain a carryback from the seller at 8% interest with a monthly payment of $1945. With no prepayment penalties.

              This business had a net gain of approx. $8,000 per month last year (second year) and it has a net gain of approx. $10,000 per month already this year.