19h • General discussion
Acquisition in Progress
I just went under contract on a 1.6M business with an additional 1.1M in real estate. For the business I'm doing an SBA7a with a 5% seller carry note on full-stand by to help with the 10% liquidity injection. I am doing more conventional financing on the real estate but trying to get it with no money down. Since I negotiated hard on the real estate and not the business, I'm getting the real estate at a really low basis. Based on market rent and a 7% cap rate, it would easily appraise at 1.8M or more. My hope is that will allow me to bring in a capital partner on the real estate who I should be able to refinance out in 12-24 months. This will hopefully allow me to get into this amazing 2.7M acquisition with less than 100K down. What do you guys think? Is this a good structure?
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Acquisition in Progress
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