Need Advice Buying 1st Restaurant

I would like to come up with as little money as possible.... I have found a restaurant that I think is a perfect opportunity for me; it is on the market for around 1.5 million for the real estate, business and equipment. What are my options? Could I purchase the real estate separately through a management company and use another company for the restaurant loan? How could I do this for as little money down as possible.

Comments(10)

  • bsteinberger31st January, 2006

    You will have to put down between 10%-20% for the purchase of the property. I can get you 100% financing for the restaurant.

  • charlandpj31st January, 2006

    That would be great if you could give me that information for the 100% restaurant financing. I was under the impression that it would be harder to get financing for the restaurant than it would be for the real estate. What kind of interest would I be looking forward too. Thanks for your time... I look forward to hearing back.

  • charlandpj31st January, 2006

    That would be great if you could give me that information for the 100% restaurant financing. I was under the impression that it would be harder to get financing for the restaurant than it would be for the real estate. What kind of interest would I be looking forward too. Thanks for your time... I look forward to hearing back.

  • AREV26th December, 2005

    First things first. You must clarify the zoning - ie rezone the property for the intended use. Is the area primarily Commercial ? or there other residential structures near by? Once you know you have a "do-able" residential deal - look for equity. Share the profits with a new partner.

  • homesolver28th December, 2005

    What about using Private Money?
    [addsig]

  • ashwin30th January, 2006

    Did you consider getting 2nd mortgage from the seller or broker ? Since they want to sell it, and you already have enough finance , they may consider it more favorablly, secondly you may save substantially on closing cost.

  • stdavid31st January, 2006

    Thanks all. Ashwin, I wish I had heard from you sooner.....your idea would have saved me a great deal of money. I ended up borrowing $30,000 at a cost of $5,000. (11.5% interest only + lender fees + closing costs) So the financing is over, now begins the battle with the corrupt building department.

  • bsteinberger31st January, 2006

    Who was the lender? Can you email it to me?

  • ashwin31st January, 2006

    Thanks for your appreciation, but do not feel bad, Here in Atlanta they chage from 12 to 15% plus 4 to 5 points. with the term of 6 month only.
    But since you are receptive let me suggest one more thing. As you had mentioned earlier that you are using this money as a safety net only, may be you can put that money in fix deposite or commercial paper that you can make 4.5 to 5% ( now a days some smaller banks offer it.) If you have to use the money they will probably pay you only a regular savings rate, But if you do not have to use it your net cost of money will be little less then now.

  • cwal3rd February, 2006

    why pay more than appraisal?...that should be a negotiation point...offer the appraisal figure first & include $15k down for him/her to owner finance for 1 yr....then refi as the owner. If you get a refusal or a counter you can consider offering say (5%) more ...keeping in mind that lenders will tolerate a 5% tolerance in an appraisal...you do not want to go too much over or your refi will limit your funds to pay off the seller...if you get another refusal/counter you still have the other $5k to tempt the seller to go along...nothing ventured, nothing gained...regards, CWal

Add Comment

Login To Comment