Small story short, a previous boss of mine who I stayed friends with wants to sell half of the business. I have been looking to startup this exact business myself. Over the last few years I’ve worked on getting business credit to our LLC, perfecting a business plan for a from-scratch business, and generally preparing to approach a bank.
They want to sell for way less than what we would need to start a business. And I know them, we would be running the business how we would want to run it. No issues there.
Now I’m considering using a broker and getting a loan that way. Is this better and potentially more efficient than the traditional bank route? Not knocking the approaching a bank route but we also don’t want banks to say no over and over again, as this is a restaurant we’re buying.
Buying into a partnership for a restaurant seems like a disaster waiting to happen. If you really see value here, why not buy the whole thing?
It’s funny that you say that because we ended up floating that around to them today. They’re old and over it and want to move on, they just want the name to remain the same and they want to continue to go in and be the bosses in the eyes of the customers and staff, which yeah whatever I don’t care I guess
Broker may know of loan companies you are not familiar with, but they will be expensive. Try small local banks. Also, consider asking seller to hold paper. They potentially save on taxes by reporting sale over a number of years. For the down payment, savings, life insurance loan, home equity loan, 401k loan, etc.