It is a 65 year old, non-franchised grocery store. A friend of mine and I have a combined 30 years in the grocery business, and have found this nice opportunity. Unlimited potential for growth, as the previous owners have sat on their hands for years, and have done nothing to expand the business in some time. The package we received shows that there is still lots of money being made there, despite the lack of effort. I have a poor personal credit history, so I was wondering if I could get any advise from you all on how I should go about this. I have potential co-signers for the loan, and my partner looks to be good to go with his half. Do I have a chance with the poor credit history to get my share? It is looking like I will need 200 000 to 300 000, unless we can talk them down more. Help? Thanks.
2007-06-21 09:48:33 · 5 answers · asked by CanuckSam 1 in Business & Finance ➔ Investing
You will need a large down payment, consider selling your house and using any equity in the business. Getting financing using your assets as collateral might work but you have to use your own assets to invest, if you don't have your money in a deal it is too easy to walk away and leave an investor hanging.
2007-06-21 11:09:06 · answer #1 · answered by shipwreck 7 · 0⤊ 0⤋
I suggest purchasing a seasoned corp. Why ? For one a seasoned corp , one that is 2 to 15 years old even though it may have done nothing, has a better chance of a loan. I know this is vague but to go into all the details would take up to much room on here. Basically you can purchase a seasoned corp for around $ 2,000.00 to several thousand of dollars, it depends on how old the corp is and if it is rated with Dunn and Bradstreet and does it have an existing credit rating. another nice thing about buying a seasoned corp, it has been around for at least two years which will make it easier to obtain financing you need. Also even if you have bad credit, it does not come into play when you apply for corporate credit as the credit is granted based on the corporations past performance. If you would like more info or help write me at bankerbobretired@yahoo.com Good luck and I know the potential your investment has as it is a very profitable venture as people always need food.
2007-06-21 16:54:00 · answer #2 · answered by Robert N 2 · 0⤊ 0⤋
It relies upon how undesirable your credit is. Your score is important, besides as your earnings concern. Debt isn't a poor factor no count number if that's doable. month-to-month minimum money in comparison to your earnings is extremely significant. finding on your specific concern, there are courses to certainly help those with below-average credit purchase properties. you will be able to wish a sub-best loan if your mid score is under 620, which isn't a poor factor in case you already know them. you will be able to wish a minimum of a 5% down charge and you will need what lenders call "reserves" those are liquid sources. money you ought to get to in case you had to, alongside with any financial employer bills, IRA, 401K, and so on. you ought to have statements on your names, and have the money for no less than 60 days earlier you shut the loan. Underwriting policies are specific. maximum banks won't artwork with you. you ought to discover an truthful, ethical, ethical loan representative or loan broking provider, which isn't straight forward. that's achieveable, it basically relies upon on your score, earnings & sources.
2016-10-18 07:02:40 · answer #3 · answered by ? 4 · 0⤊ 0⤋
yeah. get like a llc, or lp to do so.
2007-06-22 08:53:05 · answer #4 · answered by Anonymous · 0⤊ 0⤋
No.
2007-06-21 10:26:32 · answer #5 · answered by Anonymous · 0⤊ 1⤋