All Forum Posts by: Earl Allen Boek

Notice:  I am scaling back the 2015 Gross by half in my forecast above.

Not because I cannot do it, I've done it, but because, after closer analysis

of the market and cities surrounding it, I feel 5 licensees is more in line

with the number of retail operations needed.  Also, I'd rather under promise

and over-deliver than the other way around. Still at the end of the day, I 

doubt it would have any bearing on what the business will sell for in late

2016-early 2017.  EAB   Sorry if that confuses anyone.  

Loan Request Letter On Glass Shop Business And Expansion Loan

Sir: I hope you've had time to read my reply to you

on BIGGER POCKETS. COM regarding the gross

profit and margin of the Window and Glass company.

http://www.biggerpockets.com/forums/517/topics/217914-seeking-250-000-to-purchase-43-year-old-successful-commercial-residential-glass-business?page=1#p1454122

I've also added information on how I intend to increase profits so

quickly and to such a large amount. Please note I've had substantial

experience regarding these window home improvement products and projects as I've had with multiple location management (chain building).

As you can see then, there is more than enough EXISTING income to

debt service the $250,000 cash infusion I am requesting. I'd like to see

$250,000 @ 10% Amortised over 30 Years/Due in 3-5 years, no prepay

penalty after 1 year. Transaction to go through title and escrow, will

provide business forecast as well as budget and expansion time-table.

Willing to rebate $25,000 (10Pts) back to lender or your demand letter

and another $6,581.79 in prepaid (3 months) of monthly payments in

advance at close as well.

I expect the businesses, with it's licensees and exclusive manufactured products and order-files to be worth in the neighborhood of $1.5-$2.0

Million withing the first year. Your cut at sale would be 25% of the remaining profit after the loan amount principle owed on your loan is paid off at that time.

Let me know if any of this offer interest you or make a counter and I will consider it.

Sincerely,

Earl Allen Boek

I am ready to begin now and have ample inventory for this up and coming Christmas season.

___________________________________________________________

Signature Removed to meet Bigger Pockets Requirements Regarding Advertising

You know Donald Trump was my mentor.  A few (ten) years ago, on the internet Mr. Trump had set up a website giving business advice.  He advised that no business deal he ever did started out perfect.  That sometimes you just need to pull the trigger on a deal and you will be amazed how quickly it all starts falling into place. (I'm sure after all these years these were not his exact written words) but they are close enough.  In that vein I did what few have ever accomplished.  I acquired a medical/dental center and two commercial lots that had been empty and for sale for three years.  I closed escrow with over $100K in the bank, I created about 4 income streams in addition to just leasing spaces and a financial statement of a little over $800K all from scratch.  Within 6 months the buildings and lots appraised for nearly double what I paid for them.  

So as you read what I've posted above, please realize, I have already pulled the trigger.  As a investor, you will earn more money faster than most straight out real estate transactions. 

The sellers have chosen to keep the property and lease it back, with reasonable terms, back to the buyer.  That turns out to be a plus for the transaction and a decision on their part they well likely regret down the road. Money is just a tool.  It takes God given talent to put a transaction like this together and then deliver. I know, I've done it more than once.

Sincerely,

Earl Allen Boek

If I tell you much more here I'll have to kill you.  Smile

These custom windows will be made exclusively with Certainteed Vinyl Double-Glazed, Argon Filled, Low-E Glass with Hardwood Inlaid Oak, Birch, and Walnut seats and ceilings. Recessed lighting and dimmer switches and electric plug-ins.  All Windows will be assembled and manufactured at this operation and the first show-room sales operation will be located there in the existing shop and show room.  These highly energy efficient decorative windows are commonly used and installed in the front of track homes or custom homes in what would be known is their 8 foot x 4 foot picture window the window stick out of the opening creating the seat areas inside and allow sidelights to be opened up or down lite to catch breezes when wanted. Licensees will pay $50,000 each up front for a host of window samples, Thermal decorative insulated front doors, garden windows and sky lights.  Certainteed products have life-time warranties, is a hundred year old home improvement products manufacture and will be marketed and installed by a nearly 50 year old glass company.  Widows of this quality and these features and beauty have never been massed produced.   Prices start at $2999.00 including life-time warranted window screens.  licensees will be placed in upscale shopping centers surrounded by subdivisions and population areas to sell 10-20 units per month. Sales will be about what this one business is currently doing but profits should be almost double what this operation is currently doing. Projections are based on actual past experience.

I think 25% owner equity in the entire operation including expansion is

crazy fair, since we will be paying you interest on a loan, not just 

equity interest and return.  Intent  and exit is to prove the model (again)

and flip the entire operation after 10 Licensees are established. But 

that's just me.

Fair enough Hai Loc  Current business $200,000 last year (keep in mind owner

is a baby boomer with wife who has health issues) For four years now he has

purposely not done any expansion even though the area he is in is strong.

Profit Declared approx $50K.  wife has been bookeeper.  Within 6 months

Gross will increase to $500,000 and profits to $150K -$175 in addition to existing

income.  

Come on guys.  The folks at SHARK TANK would be all over this deal, like white on rice.

Approx. 50% Loan To Value. Business currently held in LLC. Owner holds all licenses, bonding and insurance. Will consult as needed. Funds to be used to purchase and fund aggressive licensee, custom bay, bow and window expansion in Washington, Oregon and Northern California. Investor will be given ownership interest in LLC, secured by First Position on business itself, as well as 10 points at close of escrow and 10% interest in the form of monthly income from existing gross & profits. Certified Investor contact Mr. Earl Allen Boek [email protected] 530-215-5992 Confidential NonDisclosure Agreement Required.

I've stated my position here earlier.  I'm not comfortable investing my 

money in long term real estate transactions any longer.  The game, like

all of the games are rigged.  Short term purchases (bought right) of 

businesses from baby boomers who are ready to retire and want out,

make sense to me.  Anyway, IF I'm not comfortable investing my money,

I'm even less comfortable investing others money.  That's something

that never bothered me in twenty years.  But times change, we must

be open to changing with them.  Just my personal thoughts on the matter. 

EAB