a business with a cash flow of 82K before owner's pay. seller willing to finance some. what should I offer ?

There was an article about how to make offer on owner financed deal on this website but I can't seem to find it now. Is it still available?
In Buying Property - Asked by jim s. - Apr 27, 2010
Report Abuse
Answer this Question

Answer(s)

Greg T.
Broker/Agent
Pompano Beach, FL

Jim...Business valuations are done two ways: Owner benefit x a multiple (like 2) + inventory and assets or as a straight asset sale...
Owner benefit will be all money that the owner takes out of the business to pay his living expenses that otherwise would have been covered by a salary...+ what is leftover in the company bank account...
Owner financing is the norm not a benefit at this time...The usual % is 1 point over prime...Right now if you can get 5-6% you are doing good...
Greg Tzucanow
Southeast Business Partners, Inc.

Apr 27, 2010
Report Abuse

Welcome to Answers

LoopNet Answers is where the commercial real estate community shares what they know to help each other out. And it's all for free.

Ask a question to get advice from brokers, investors, professionals and local experts.

Answer questions to raise your visibility as a trusted advisor and build new relationships.

Ask a Question

Post Question