100% Seller Financed Deals
July 26, 2022
by a searcher from Massachusetts Institute of Technology - MIT Sloan School of Management in Florida, USA
Has anyone ever gotten a deal closed with 100% seller financing? If so, please share your story! What were the challenges and risked you faced in the DD process? Did you complete an expedited/abridged DD process given the offset of risk due to the seller financing aspect of the deal? How have you grown the business since acquiring it? Thanks in advance.
from Texas A&M University in Johnson City, TN, USA
But I had to acquire the CRE conventionally. I did due light DD, which I do not regret.
Now that I am comfortable with business and 5 months in, I've already been looking into doing a refi with a bank to help me negotiate a discount off seller note.
PG to the seller was a sticking issue. Seller wanted to negotiate everything, and was still pretty much uninvolved after 30 days. Which is fine.
Getting LOC has been difficult, even with good personal credit. Business credit was not well developed, so it fell to me to be able to get credit cards, etc based 9n personal credit.
In this particular case, the seller note was used to overcome the a combo of customer concentration, location, small size issues.
It made my personal stress lower in transition to know that I had an easier pressure relief valve than bank debt if things went sideways. But now I just want to lower monthly debt service and increase cash flow, like most owners.
Listen to ^David Barnett on YouTube. 100% SF does NOT mean that you won't be putting money in, or that you should do something like an acquisition if you have no money.
from University of Southern California in North Palm Beach, FL, USA
Don’t miss the show notes, below the podcast.
https://youtu.be/mx9sVOQ5ElY