combining business with real estate - Posted by Josephine(CA)


#1

Posted by Harvey Carroll, Jr. on December 23, 1998 at 18:08:02:

Your explanation is a bit confusing.
I assume 40% 2nd
60% 1st Mtg.
=100% Total price.
? where is business investment comming from and will the business produce enough cash flows to pay off property???
I have seen simular deals where the property was purchased and a business built in to generate enough cash flow to pay everything to include the businesses own bills. I would get an option and crunch a lot of numbers, perhaps talk to SBA, do a good “realistic” business plan… Keep in mind a lot of businesses fail… don’t make any mistakes…
JR …KY


#2

combining business with real estate - Posted by Josephine(CA)

Posted by Josephine(CA) on December 19, 1998 at 11:21:41:

Have anyone structured your offer to sellers this way:

Property is free anc clear. Make offer at market price.
40% seller carry back
60% first mortgage, with 20% cash to sellers, and 40% used to invest in other businesses with 15% or more return.

The result is the sellers get full price offer, some cash, and then cash flow, then cash flow forever. Of course, since the business profit pay for the 2nd mortgage interest, the property itself has good positive cash flow.

Anyone who’s done this please email or post your experience. I have detailed numbers but won’t bother everyone unless you are interested. Thanks.