I requested more information about a listing and the broker asked for a 15-minute call. The listing was under LOI and none of their other listings are in my target geography, but I figured it can't hurt to network.
I think I might have said 3 sentences over 45 minutes on the phone.
Without asking me any questions, he essentially tried to explain why I would never be able to buy a business like the one I asked about.
After the call, I was full of self-doubt and discouraged, but that quickly passed.
Not all brokers are created equal. First time I've ever had an experience like this. Note to Self: Consider the source
highlights of the wisdom he offered
search funds (even though I'm self-funded): "Got to watch out for those. They'll use you to source the deal and cut you out" "You have to have an MBA from Harvard and bring $1M to the table"
banks: "They don't care about your credit score or if you have a $5M net worth. They won't lend to you if you don't have experience in that industry."
white collar owners: "every white collar guy that buys a blue-collar business fails"
seller financing: "Any quality deal will have at most a 5% seller note"
SBA lenders: "10% down is just for marketing. No deal ever gets done close to that amount"
Common Broker Tactic or something else?
by a searcher from Western Illinois University
More on Searchfunder
Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
As for brokers, there are more of them than you have time to nourish (unless you’re in a small town).
Be nice to them and ignore brokers who are not (it gets worse) respectful.