Need mentorship to buy a business in 6 months? See if you qualify for my BUSINESS ACQUISITION MASTERY PROGRAM: qualify.businessacquisitionmastery.com/application286533 Download my popular CASH FLOW CALCULATOR FOR BUSINESS PURCHASE TOOL: calculator.businessacquisitionmastery.com/optin Download my helpful BUYER DUE DILIGENCE CHECKLIST: checklist.businessacquisitionmastery.com/optin458884
Great information very smart men. All the SBA underwriting guidelines and information sounds like it mostly covers buying a business? SBA Loans for working capital or debt consolidation is much more quickly?
Yes, you can get an SBA loan also to start a business or working capital for your existing business. However, most SBA lenders do not like doing start up loans since they are very difficult to get approved
Waite, if a business has a strong cashflow, I still need to have a collateral? If the SBA or all banks require a collateral, it might be a better option to find businesses with seller financing.
No, not all SBA lenders require collateral. What you're buying is the cash flow stream. But, the strength of the cash flow, the business, longevity, etc will play a role on whether the deal is strong enough to warrant no collateral. Does that make sense?
Trying to understand SBA loans. Looked at an service based business. It has a 2x multiple. But its around $500k. From all that i read i would need 10% down and need to put my house up as collateral. Its paid off i have no plans of ever touching that. I worked my butt off to pay for it. So, im i correct that i would need to put up both?
Yes, would need 10% down. You may need to put up some equity in your house. That you may never touch the equity, not true. Think about the rest of the biggest taking. They’re putting up 90% of the equity required.
I guess it depends whether you could purchase a $2 million business for less than that by paying a lesser multiple of cash flow. There are many variables here.
@@LeoLandaverde it’s a grocery store selling at a 2x multiple. Next step, I’m going to ask for tax docs to see reported income then ask the seller to sell at a 2x income and finance the rest. What do you think of this strategy? Or will that be uncommon for high ticket sales?
Need mentorship to buy a business in 6 months?
See if you qualify for my BUSINESS ACQUISITION MASTERY PROGRAM:
qualify.businessacquisitionmastery.com/application286533
Download my popular CASH FLOW CALCULATOR FOR BUSINESS PURCHASE TOOL:
calculator.businessacquisitionmastery.com/optin
Download my helpful BUYER DUE DILIGENCE CHECKLIST:
checklist.businessacquisitionmastery.com/optin458884
Best channel on UA-cam for financial freedom 🧠
Thank you very much. I am honored!
Another great fudiciary guest,thanks Leo. Talk to you on thursday appointment.
Absolutely. Looking forward to chatting with you!’
Great information very smart men. All the SBA underwriting guidelines and information sounds like it mostly covers buying a business? SBA Loans for working capital or debt consolidation is much more quickly?
Yes, you can get an SBA loan also to start a business or working capital for your existing business. However, most SBA lenders do not like doing start up loans since they are very difficult to get approved
Waite, if a business has a strong cashflow, I still need to have a collateral? If the SBA or all banks require a collateral, it might be a better option to find businesses with seller financing.
No, not all SBA lenders require collateral. What you're buying is the cash flow stream. But, the strength of the cash flow, the business, longevity, etc will play a role on whether the deal is strong enough to warrant no collateral. Does that make sense?
@@LeoLandaverde Got it.
Trying to understand SBA loans. Looked at an service based business. It has a 2x multiple. But its around $500k. From all that i read i would need 10% down and need to put my house up as collateral. Its paid off i have no plans of ever touching that. I worked my butt off to pay for it. So, im i correct that i would need to put up both?
Yes, would need 10% down. You may need to put up some equity in your house. That you may never touch the equity, not true. Think about the rest of the biggest taking. They’re putting up 90% of the equity required.
I guess my dream of buying this $2mil business with $50.000 down is truly intact only a dream
I guess it depends whether you could purchase a $2 million business for less than that by paying a lesser multiple of cash flow. There are many variables here.
By the way, what kind of businesses are you looking at? What industries?
@@LeoLandaverde it’s a grocery store selling at a 2x multiple.
Next step, I’m going to ask for tax docs to see reported income then ask the seller to sell at a 2x income and finance the rest. What do you think of this strategy? Or will that be uncommon for high ticket sales?
2X multiple it’s a great deal. If you agree with their seller discretionary earnings or adjusted EBITDA numbers as evidenced. by tax returns.
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