My client wanted to purchase a convenience store he managed for a long time from the current owner for $80,000. We also had to get this done within 30 days because the current owner of the store had a friend of the family who was ready to pull the trigger on the business if my client didn’t come up with the financing. This is too small of an amount to do a business acquisition loan and his credit was not sufficient to obtain unsecured lines of credit.
However, he had a commercial property that he had just purchased about 9 months prior that he was almost finished renovating. The property was worth about $200K in its current condition and he only owed about $50,000 on it. We were able to secure him $130K in financing so we could pay off the current lender at $50K and he had $80K available to then purchase the convenience store.
He went from making about $800/week managing the store to making about $1,800/week owning the store. He also has income from the building of about $2,400/month so he has more than enough cash-flow to cover the loan using just the building’s cash-flow. His life will be forever transformed!
|$130,000 Loan Amount
|1-Year Term (Interest-only)