Need Advice Buying 1st Restaurant
I would like to come up with as little money as possible.... I have found a restaurant that I think is a perfect opportunity for me; it is on the market for around 1.5 million for the real estate, business and equipment. What are my options? Could I purchase the real estate separately through a management company and use another company for the restaurant loan? How could I do this for as little money down as possible.
You will have to put down between 10%-20% for the purchase of the property. I can get you 100% financing for the restaurant.
That would be great if you could give me that information for the 100% restaurant financing. I was under the impression that it would be harder to get financing for the restaurant than it would be for the real estate. What kind of interest would I be looking forward too. Thanks for your time... I look forward to hearing back.
That would be great if you could give me that information for the 100% restaurant financing. I was under the impression that it would be harder to get financing for the restaurant than it would be for the real estate. What kind of interest would I be looking forward too. Thanks for your time... I look forward to hearing back.
First things first. You must clarify the zoning - ie rezone the property for the intended use. Is the area primarily Commercial ? or there other residential structures near by? Once you know you have a "do-able" residential deal - look for equity. Share the profits with a new partner.
What about using Private Money?
[addsig]
Did you consider getting 2nd mortgage from the seller or broker ? Since they want to sell it, and you already have enough finance , they may consider it more favorablly, secondly you may save substantially on closing cost.
Thanks all. Ashwin, I wish I had heard from you sooner.....your idea would have saved me a great deal of money. I ended up borrowing $30,000 at a cost of $5,000. (11.5% interest only + lender fees + closing costs) So the financing is over, now begins the battle with the corrupt building department.
Who was the lender? Can you email it to me?
Thanks for your appreciation, but do not feel bad, Here in Atlanta they chage from 12 to 15% plus 4 to 5 points. with the term of 6 month only.
But since you are receptive let me suggest one more thing. As you had mentioned earlier that you are using this money as a safety net only, may be you can put that money in fix deposite or commercial paper that you can make 4.5 to 5% ( now a days some smaller banks offer it.) If you have to use the money they will probably pay you only a regular savings rate, But if you do not have to use it your net cost of money will be little less then now.
why pay more than appraisal?...that should be a negotiation point...offer the appraisal figure first & include $15k down for him/her to owner finance for 1 yr....then refi as the owner. If you get a refusal or a counter you can consider offering say (5%) more ...keeping in mind that lenders will tolerate a 5% tolerance in an appraisal...you do not want to go too much over or your refi will limit your funds to pay off the seller...if you get another refusal/counter you still have the other $5k to tempt the seller to go along...nothing ventured, nothing gained...regards, CWal