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Seller financing

I want to buy a country store. The owners family and mine known each other since 1930. So he is willing to work with me. I am unemployed with maybe $2000 for down payment or what ever cost I may have to take care of. I haven't had an apprasial done yet. Bank/land contract is out. His interest and mine need to be protected. I believe the land contract would be best, but I'm having a hard time convincing him. Any suggestions?

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Answers (2)
Harry & Sally Vaishnav
Angel Business Advisors
President
Oakland County, MI

Larry

Given your situation Land Contract is the best (and may be only) option you have. Whether the seller is willing to do it depends on how soon wants to exit the business as well as how many other offers he has. You will need more than just a telling to convince him.

My suggestion is to look at the overall finances of the business including cash flow and understand how you can pay him back as quickly as possible with cash flow from the business. You will also need to make a case in terms of why he is better off financing you rather than trying to find another buyer which may take a long time.

Whatever you do make sure you have good, legal agreement in place. Don't just go by handshake even if you are good friends with the seller.

May 12, 2010
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Biz2Credit LLC
New York County, NY

Larry,

Land contract will be best way to start and run the business for 6 months to 1 year. That way you would have accumalated some capital as well as experience of running the business. As of now you can qualify for a micro loan. For all the options check at www.biz2credit.com and get to know all the options

May 10, 2010

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