Business owners/Sarge??

**blackSS01** · 12-21-2009, 03:29 PM

I have some questions from some of the people here own businesses. While on vacation I ran across a business thats for sale that I could run and could make a lot of money off of it. Here is some info without giving up too much info:

Turn key operation, everything comes with it to run it.
Price is $350,000.00 to own it.
Building alone was appraised this year at $345,000.00
Equipment plus full stock equals approx $75,000.00
Building comes with 2 apartments so I would have my living taken care of since its a 7 hour move.
Business GROSSES $800,000.00 + a year minus renting the apartments.
Business was established in 1950's
Owners will stay on 2 weeks for training and are retiring in the area for further help.
Owner didn't disclose NET earnings but said it was 6 figures
Owner gave me the bank he banks through, he now fully owns the operation.
Business has a strong hold on the area for what it does.

So thats a good chunk of info, my credit isn't that great but I have credit and only about $3000 in debt. If I had to, I would sell my Camaro/everything I could for help if needed. I'm thinking that regardless I should be able to get the loan off of the information the bank has. They should know what it makes every year. He has banked with them his whole life, would be my first time with the bank. What do all you owners think? Never did this before but would have no problems running it

It sounds too good to be true but I have other info that I don't want to disclose.

**Brian H Drifer** · 12-21-2009, 03:39 PM

Do you know anything about the business? Are you going to need to hire people? It can be a lot of hidden cost in the overhead of a business.

**blackSS01** · 12-21-2009, 03:41 PM

Originally Posted by Brian H Drifer

Do you know anything about the business? Are you going to need to hire people? It can be a lot of hidden cost in the overhead of a business.

I have the people to run it taken care of. From what I have seen of the building, it looks to be in good ass shape. I know what is needed to run the business

**blackSS01** · 12-21-2009, 03:49 PM

I should note, the business employs 2.5 people. 2 full time = My buddy and myself with me being the sole owner and the part time will come with it. They have talked to him already and worked it out. I would be working 6 days a week for a good little bit but I don't fuckin care. Did 16 hour days 6 days a week for 8 months in Afghanistan so this wouldn't be shit.

**Brian H Drifer** · 12-21-2009, 03:52 PM

workers comp insurance.... not sure about the trade or number of people but we pay close to 100k a year for workers comp.

**Trixter99** · 12-21-2009, 03:52 PM

Take my advice and have a well qualified inspector to look at the building. I bought my building and it turns out it needs a roof it's not that bad nothing 80.000 wont fix.Had I known anyting about commercial buildings especially older ones I would have negotiated a better price.

**Brian H Drifer** · 12-21-2009, 03:54 PM

Kinda hard to help you out without knowing much, but you will never make any money working for someone else.

**blackSS01** · 12-21-2009, 03:56 PM

Originally Posted by Trixter99

Take my advice and have a well qualified inspector to look at the building. I bought my building and it turns out it needs a roof it's not that bad nothing 80.000 wont fix.Had I known anyting about commercial buildings especially older ones I would have negotiated a better price.

I was thinking about this but if it just got inspected before winter for appraisal, shouldn't that be good. I was in the trades and can do everything pretty much except roofs. Plumbing/electrical/concrete/framing/drywall I am alright at with my strong point being Plumbing. Plumber for 3 years before economy went to the shit

**blackSS01** · 12-21-2009, 03:57 PM

Originally Posted by Brian H Drifer

Kinda hard to help you out without knowing much, but you will never make any money working for someone else.

THIS

**cuzimoto** · 12-21-2009, 07:06 PM

The banks not gonna give you $ based only on the income of the Bus. You'll need a vested intertest, like you got something to lose if you don't make it. Need to have a close look at the books. Make sure you don't inheret his debt and that he has no legal settlements against him or it willbe yours too.

**third_shift|studios** · 12-21-2009, 07:09 PM

do you personaly have in depth experience in this line of trade?

**35th-ANV-SS** · 12-21-2009, 07:14 PM

I may be wrong, but an inspection for appraisal is not the same as an inspection for purchase. When I had my house appraised for my refinancing, the lady came in and basically took pictures and asked questions on what I had updated since I moved in. She didn't "look" at everything. She was at my house for a total of 10-15 minutes.

An inspection for purchase would consist of a qualified individual checking things like electrical, roof, siding, structural issues, mold, etc. It would be a lot more in depth I believe.

If I were purchasing anything of that much value, I would go ahead and have it re-inspected anyway. If the inspector finds something, it could be cause for grounds of getting the property even cheaper, assuming it is nothing major.

**gnomee** · 12-21-2009, 07:28 PM

Nothing is free. Generally anything too good to be true is exactly that.

I find it hard to believe he would be letting this business go for so cheap if it did this well. You can hire people to run your company, selling it makes no sense if it is doing that well.

I would look REAL close at the books like said above. Good luck!

**35th-ANV-SS** · 12-21-2009, 07:31 PM

Originally Posted by gnomee

Nothing is free. Generally anything too good to be true is exactly that.

I find it hard to believe he would be letting this business go for so cheap if it did this well. You can hire people to run your company, selling it makes no sense if it is doing that well.

I would look REAL close at the books like said above. Good luck!

I was thinking this same exact thing....

Just be careful and don't get in over your head. Take all the necessary precautions and do your homework. Sometimes there are good deals to be had out there, but the pickings are VERY slim.

Good luck.

**Hi-Po** · 12-21-2009, 07:35 PM

You went to Michigan on vacation, and found a GREAT buisness opportunity? That right there is a Red Flag.

**JHayesLS1** · 12-21-2009, 08:32 PM

Originally Posted by Hi-Po

You went to Michigan on vacation, and found a GREAT buisness opportunity? That right there is a Red Flag.

**86 IROC-Z** · 12-21-2009, 09:20 PM

I was reading about another guys account of starting up a business and one of the main expenses he missed when budgeting was that he had to match his employees taxes or something like that.

**Modulistic** · 12-21-2009, 10:27 PM

The guy probably has a lot of debt he isnt telling you about.

**fbod91** · 12-21-2009, 10:44 PM

he probly killed a illegal immigrant and stuffed him in a wall, watch out for that too

**blackSS01** · 12-21-2009, 11:42 PM

Originally Posted by Hi-Po

You went to Michigan on vacation, and found a GREAT buisness opportunity? That right there is a Red Flag.

Not really, bunch of opportunities I found besides this

Just gotta look, that and I am in a different area then you are

I have a meeting/phone call meeting

with the bank. They will know first hand about his debt......or atleast they should. He is giving it up because he is old and made his money. He has no kids to leave it to. There is some info left out but not enough to change anything. I will check on the debt thing tho! How much does it cost to inspect a building