Seller Financing Options- add to the list

by a searcher from Indiana University at Bloomington

2 months ago

I have an off-market deal that the owner has expressed interest in owner financing with creative terms. We are looking for ways to "play" with terms and options to increase the paid price, partly by (legally) avoiding taxes. but open to suggestions 

I have a few that we have discussed but am looking for concepts you have implemented and not looking to limit your creativity. The financed amount can be between $250-$900k over anywhere from 5-10 years (adjust how you want). 

I'm meeting with him on Monday and wanted to walk in with lots of options that we can then hash around (and yes my accountant/lawyer will be reviewing before any commitment).

Thanks for your thoughts.
Tomas

2 likes
177 views
4 comments

lender from Eastern Illinois University

In order to give him a higher price if you are not using SBA financing at all you could include an earn-out based on future performance. That way he has an opportunity to earn more but you have protections. If using SBA for your senior debt you can build in a forgivable seller note, or you can do that anyway, where part of the debt is forgiven if certain metrics are not hit. That way you can offer a higher price but again give yourself some protections. Please let me know if you would like to discuss here or directly at --@----.com Good luck.

2 months ago | like reply | 0 likes

searcher from New York University - Leonard N. Stern School of Business

Consulting is a great mechanism.

2 months ago | like reply | 0 likes

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