How to buy a business with real estate included

How to buy a business with real estate included

Yorba Linda, CA · Member since 2019 · 4 posts · 1 vote

One of the things that I have been interested in besides real estate is owning my own automotive business. There is a local auto business for sale that the seller is including the land and in OC thats a huge plus, like many other areas. The land included is about half an acre and the auto shop has been around for a long time. When I first contacted the agent a year ago the seller was asking way too much and was not willing to carry any of the loan or do an SBA. It didn't really matter because I didn't have any type of down payment or money to put in, so they wouldn't even talk to me. As I have been watching the business the owner dropped the price and is open to carry the loan if someone comes in with 25-29% down, which would be close to $700k. The more I have been listening to podcasts and reading the forums of BP, I learned about syndication and the benefits of it. My question or questions are, would this something a syndication would be interested in and how would I go about finding a syndication that would help? My plan was to run the business myself and grow the business. Currently the owner has not really advertised or done anything other than the word of mouth advertising from the local community. One more newbie question, if I did go through a syndication company how would the ownership work? Would I have 71% and the investors have 29%? Any help and information would be greatly appreciated.

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  • AJ ShepardPro Member
    Real Estate Syndicator · Portland, OR · Member since 2014 · 453 posts · 312 votes
    6y

    @Chris Oakeson sounds like you are looking for investors to go in on the real estate with you and also buy the business. I would suggest starting locally with people that you know that are interested in real estate. Most likely you’ll want to split the real estate and business and offer someone to partner with you on the real estate portion.

    Sounds like a good opportunity for you, you just need to convince an investor that it’s going to be a good deal for them too.

  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    6y

    So this package deal is like $2.5- 2.8k ?? ($700k being 25% down).  I can’t see any investors/syndications interested in this.  If they were, and putting up 100% of the money, they’re going to want to own 100%, or close to it.

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