Posted by Ed Copp (OH) on May 01, 2000 at 08:48:31:
Something here is not coming together, in my mind. First you mention a value of 200K and a purchase price of 138K. I think that the 200K “value” probably is not real, rather the opinion of the seller. Now I reserve the right to be incorrect, since I have no idea about the market you are in. I do not know where you are.
It is my opinion that if there is over 60K in equity going in that you should not be asked to put another 60K into the deal. I mean the seller will come out fine, cash heavy, and no more management problems, but what is in it for you?
As a footnote, there are places in this country where a population of 6,000 is considered to be a “big town”, and over 50 (age) is just considered mature. Anyway if it were my deal I would look long and hard before I put 60K into it. If you like the deal there should be some way to refinance, and not put so much cash into it…ED