1st hand experience using ROBS to fund a business purchase?

[Shane H.]

My wife and I found a business we toured this weekend and we are sold.  We are wanting to put an offer on it this week.

Until last week and checking out SBA lending I was not aware of using a ROBS as a tool for the purchase of a business.  There are a few things I dont like about it but it is one way I can get into the business for little to no cash out of my actual pocket.

Would use Guidiant financial -- I'm hoping to structure the ROBS so it funds appx 9% or so of the downpayment and I can get a seller carryback for 6-7% or so - will use an SBA loan for the rest.  If I can work out this deal I can type something up down the road about it as it's something discussed here.

Didn't know if there are any horror stories out there or large pitfalls to be aware of.  Seems like a useful tool besides having to set up a C-corp and pay myself as an employee which I do not like in the least.  I'd want to save up company cash and pay back the ROBS money ASAP and dissolve it, changing the ownership structure to that of something more beneficial to the business.