Posted by StevenS(CPA) on July 18, 2008 at 14:50:52:
In Reply to: Re: In this tough market - is this a new idea posted by phil fernandez on July 18, 2008 at 13:34:45:
Yeah I understand why he feels that way. Restaurants are difficult even for experienced restaurateurs. I try to stay away from them myself.
I prefer going with easy to understand businesses with good cash flow.
But you're right about the owner financing in business deals it's pretty much expected even if the Seller says they want all cash 95% of them know they will be holding some kind of paper in the end and most likely around 50% or more.
That coupled with the fact that their are lenders out there who will finance 3 - 6 months credit card sales (with little to no credit check), sell-lease-back companies that will provide easy financing, and cash flow financing if the deal is structured right leads me to believe there are some great opportunities for a lot of people to get in on.
It used to be much easier to get real estate financing deals done now getting a business financed is much easier with less headaches because of the sub prime mess.
It does take a bit of a change in mind set from flipping real estate but a lot of the techniques are the same or similar.