It's a very small bar in a town with a population of 291. However, it's the only bar in the area. We live in rural Nebraska. The idea is to buy the bar and generatre revenue in our local area. The downfall is we have bad credit. So I'm not sure if there is a chance unless we do a lease to buy contract. And I'm not sure if that is a good idea or not. Does anyone have any experience in this area?
2006-07-28 11:00:59 · 6 answers · asked by gygls73 2 in Business & Finance ➔ Small Business
To clarify: This is my huband's great step-aunt's bar by marriage.
It's a very small bar in a town with a population of 291. However, it's the only bar in the area. We live in rural Nebraska. The idea is to buy the bar and generatre revenue in our local area. The downfall is we have bad credit. So I'm not sure if there is a chance unless we do a lease to buy contract. And I'm not sure if that is a good idea or not. Does anyone have any experience in this area?
2006-07-28 11:14:55 · update #1
If it's "family", will they carry the note?
It can work with absolute legal papers, just as would be drawn up for a stranger.
Of course, the family has to realize that they could own it again, if you default.
Yes, this can get sticky in a case like that. And the owner has no guarantee of receiving any monetary compensation.
You won't find a lender willing to finance a bar, unless you have some other asset to use as collateral.
Would you be able to operate the bar as employees, and keep a small portion after expenses, then the owners receive a share of profits until paid? Papers would have to be drawn up with all the options.
I doubt that you would earn much as long as you are paying for the business.
You need an operating statement to decide that.
All expenses, costs, and cash flow.
2006-07-28 11:15:36 · answer #1 · answered by ed 7 · 1⤊ 0⤋
Is it YOUR family's bar or some other family's bar? if it's your family's bar, can't you make some sort of arrangement to pay without involving loan companies? Although business deals involving family members have a habit of turning ugly for some reason. if it's some other family's business. not sure what you can do if you have bad credit and want to buy a business. Perhaps they would let you work at the business as de facto owners. You'd have turn over a percentage of the profits to them and then an addition amount toward buying it. You won't make a lot of money for yourself this way, but you'd slowly be buying the business. I guess that is sort of like lease to buy. That might be your best bet, but get a lawyer and hammer out the details so there are no problems and you know all the stipulations. The saddest thing is the world is to work for a year or two there, giving them 2/3 of the profits and something happens that voids the lease and you end up with nothing.
that said, learn the bar or dram shop laws (as they're called here in chicago). If something happens that violates that law, all parties involved could lose the bar and that wouldn't be a good thing.
2006-07-28 11:10:29 · answer #2 · answered by bodinibold 7 · 0⤊ 0⤋
buy outright of course with a loan it does not make sense to lease for purchase. I'm sure you can get a loan from someone, not all banks are bad. talk to a Realtor or loan officer (not a loan shark) who has experience in purchasing business for their clients.
2006-07-28 11:06:14 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I woul'd try to finance it. Lots of banks, and loan companys, will jump on to a buisness loan, because if it falls through, they own it and will get more out of it. Another thing, if you get it try to put all the profits back into it and build revenue. Try to run the buisness yourself so you don't have to put out to much in payroll.
I wish you the vary best of luck it you can get it.
2006-07-28 12:40:41 · answer #4 · answered by Rick R 2 · 0⤊ 0⤋
why would u sell it if u want to buy one
2006-07-28 11:02:39 · answer #5 · answered by Anonymous · 0⤊ 0⤋
realtor
2006-07-28 11:03:50 · answer #6 · answered by Anonymous · 0⤊ 0⤋