Down Payment Assistance…

[Ed Littleton]

So, I’m looking at a laundromat/dry cleaner facility and the owner is willing to do seller financing on a portion. I personally don’t have the $ for a down payment and trying to use some creative financing tactics. Is it possible to do an SBA 7(a) For the remainder and private $ for down payment..?
I don’t want to use hard $ on a long term investment.
Anyway, it would be greatly appreciated if anyone has ideas they could throw at me!

[Jason Dodge]

Hard money is out of the question. Rates and terms are really high as they are usually 6 to 9 month loans for house flippers. SBA will let you get a little creative with private money but they may want you to have some skin in the game. Start making calls to SBA lenders. Eastern funding does acquisition loans and equipment loans for both SBA and more traditional commercial loans. They will have answers and they will talk to you no problem. If you don’t get the answer you want, start calling some smaller more local type banks. Sometimes those guys will take a risk on a person. And keep calling until someone says yes. I was looking to buy some houses and do the BRRR method and I had to call probably 15 banks before one actually said yes. As soon as I mentioned I wanted to do 10 over the next 2 years he started listening.

A line of credit on your home if your a home owner would work. Taking a loan from your 401K or retirement account could work if you have one. Credit cards can get very expensive so you may not want to tap that.

Create a business plan that outlines how you are going to increase revenue and profit. Maybe the seller will buy into that business plan and decide to carry the whole note.

Is this a dry clean production site or just a drop off location? Does this include real estate?

[Ed Littleton]

Thanks Jason for the info! Still waiting on the broker to get me more info. What I do know is that this is an onsite dry cleaner/laundromat and the real estate is included. I also know that it is a property that has massive apartment and housing growth right now. It’s in a secondary market that is fast becoming a major suburb and the seller is retiring. 4600 sq ft building with great parking. I’m thinking maybe try to work with these new buildings to bring in more clients. This would be my first deal and I’m constantly thinking about how to improve the sight… BUT!!… not falling in love with it. If the numbers don’t work, I’m out. But chewing my lip off until I hear from broker.

[Dale Glave]

Ed, How did this turn out for you?

[Juan]

Yes. Good topic and question. I wonder. 21 months later, my how the financial landscape has changed.

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