HARRON REPORT: WAYS TO FINANCE THE SALE OR PURCHASE OF A BIZ OPP

HARRON REPORT: This is a short course in the dominant ways Buyers and Sellers can finance the the sale/purchase of a restaurant business opportunity. And the ways are three! #1. All Cash Sale. Buyer and Seller agree to an all cash sale. Buyer puts up the cash and generally there is a discount off the asking price. #2 Seller agrees to carry the financing. Buyer makes a cash down payment, say 25% of the price and Seller agrees to be the bank for the remaining 75%. Interest rates are generally higher than bank rates. Term of the loan should not be longer than the current lease term of the business which may result in a balloon payment. Need to know the terms of the Note/Carryback. Coming soon. #3 SBA 7A Small business loan. Seller winds up with all cash equal to the final, agreed upon selling price. Subject to appraisal. Longer closing time, longer due diligence, need Landlord cooperation. I am Brian Harron. I am a licensed AZ Real Estate Broker and I am a lead broker at Arizona Restaurant Sales at HUB Commercial. Send questions to me at [email protected]