All Forum Posts by: Cliff Benner

Did you find this on a Listing service like Crexi or Zillow?

Did you use a local bank that agreed to a Seller Carry in second position? Or how did you find that bank?

 So far, it has been setting up searches on LoopNet, Crexi, BizBuySell, and checking out Zillow with keywords like "Cabin, cabins, resort, resorts, multiple, venue, campground" That has helped me find some that I reach out to. I think talking with a Broker in the Industry would be helpful too

@Saad D. I would have to agree with @Simon W.

If I took over, or had a client ask me to clean their books, first thing I do is make the Balance Sheet crisp and clean. Everything touches the Balance Sheet and it is the only way to judge if everything is accounted for. Then coding the p&l can happen. without the Balance Sheet, I don't know if I am missing transactions. This is where about 75% of my time is spent cleaning up. 

Looking for Tips on how to find places that have multiple cabins or additional dwellings on a property that I could live on and run. I am aware of Crexi, Bizbuysell, and Loopnet and reach out when I see something for sale on those sites. But I am wondering if there is any good Keywords for Zillow, or any websites where something like this may stand out more or any tips someone may have for finding these type of properties in CO.

Thanks!

I'm an Accountant as well, and have this issue with these more Industry or "inexpensive" Softwares for Books. I just find that they aren't worth it because of all the edits you have to make on the spreadsheet to get the same result, and one of the softwares refused to allow Journal Entries which seemed like a huge red flag to me. 

I use QBO and love having the class feature, which is a bit more per month, but you have to have it to separate out transactions for properties for Tax time anyways. This allows me to show my clients how profitable each property is and how changes to the property or how they manage them affects that property. I do have them sync their bank accounts and credit cards to eliminate human error in entering items, and ask them to avoid putting personal expenses on those accounts. This allows us to automate where transactions go and we create reoccurring depreciation entries so they can see what their return will most likely look like. 

 This was the issue I had with Stessa, single entry and that doesn't allow for JEs. 

For me, Down Payment and Closing Cost, Since I am young and want this to be my retirement, I want to buy as much now and hold forever. So Down payment is more of a concern to me. I can refinance when rates drop in the future. 

 Hi Daniel,

I recommend reading Buy then Build for all the steps in the process. But you are on the right track.

First is reach out to the Broker or preferably the Owner if available and request an NDA. Once you get that, sign it and send it back, then request their financials and documents pertaining to the sale. 

This is usually the financials they use from their Accounting system and not concrete numbers but allows you to see how they are doing. Mom and Pop shops are not that great at accounting and the numbers tend to look like they can't afford to live so take that in to account plus the operations they are doing. 

If you are interested, you can request to meet with them and/or submit an LOI detailing your offer on price, financing options, terms, and other items related to the purchase.

If accepted, request Tax Returns for this business, and have an Accountant(reach out to me if you are looking for help with the Analytics of a business purchase) compare their financials to the Tax Return. If they are willing to Lie to the IRS, they are willing to Lie to you. But this also lets you bargain by saying "you say it makes money but you have never claimed any profit".

If you like it and then you get a lawyer to draft a contract with all the Details, detailed out even more and push for a closing day.

Once that is good to go, you make a new business then do a DBA form if you want to keep the existing name for recognition.

The buyer does NOT need a representative like Real Estate, it is fairly uncommon for buyers to have one. If you get one, I would say find one who knows the industry because I am sure you will have to pay them their fee, but that fee is always negotiable in the purchase as well. I know someone who did and they worked with them on every step and helped out. You will need an Accountant to help figure out the EBITDA or Seller's Discretionary Earnings(SDE) for you and compare to the Tax Return to make sure it all looks good and makes sense. You will need a Lawyer for all the Contracts items, and if real estate is involved, a Title Company too.

Lawyer and Accountants will charge by the hour, mostly because a $100k purchase has less to look at then a $1mil purchase. Buyer Brokers may do hourly or a % of the purchase price or both because they may help you get a lower purchase price but that hurts their pay day.