Heres my dilema...I want to buy an existing restaurant that the owner is selling due to a divorce. This business is very profitable and has great food and even more potential. The problem is I cant get a business loan because the banks say I have to be a current business owner to get the loan.
I only need about 60,000.
Im putting up 15,000 of my own cash.
My credit score is about 785. Never missed payments or any other problems.
Any ideas Im currently applying for a couple unsecured loans to see if I can go that route. Im just trying to get something going for myself and families future and with this economy Im having trouble finding somewhere to get funding. It sucks that I cant get the business loan without a co-signer that is a business owner.
Just wondering if anyone out there has any ideas....
Thanks in advance.
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To remove first post, remove entire topic.
Heres my dilema...I want to buy an existing restaurant that the owner is selling due to a divorce. This business is very profitable and has great food and even more potential. The problem is I cant get a business loan because the banks say I have to be a current business owner to get the loan.
I only need about 60,000.
Im putting up 15,000 of my own cash.
My credit score is about 785. Never missed payments or any other problems.
Any ideas Im currently applying for a couple unsecured loans to see if I can go that route. Im just trying to get something going for myself and families future and with this economy Im having trouble finding somewhere to get funding. It sucks that I cant get the business loan without a co-signer that is a business owner.
Just wondering if anyone out there has any ideas....
1) Restaurants are among the highest percentages of businesses that go out of business, just know that.
2) Are you buying by yourself? Because I question how profitable the business can be and how good of an opportunity it could be if you only have to pay $60,000 to own it.
3) Sounds like you will have to go to the private lending market if you catch my drift.
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1) Restaurants are among the highest percentages of businesses that go out of business, just know that.
2) Are you buying by yourself? Because I question how profitable the business can be and how good of an opportunity it could be if you only have to pay $60,000 to own it.
3) Sounds like you will have to go to the private lending market if you catch my drift.
Getting credit is still a huge issue in America. Thank the banks. You may want to try to negotiate a loan with the current owner. He should be willing to listen (his wife too) since finding another potential buyer might be harder than they think.
You could collateralize something to secure a loan but that's hugely risky. Beyond a rich uncle or something your last option would be a partner. If you go that route be careful you don't pick the wrong person.
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Getting credit is still a huge issue in America. Thank the banks. You may want to try to negotiate a loan with the current owner. He should be willing to listen (his wife too) since finding another potential buyer might be harder than they think.
You could collateralize something to secure a loan but that's hugely risky. Beyond a rich uncle or something your last option would be a partner. If you go that route be careful you don't pick the wrong person.
Sam Adams might be able to help you out. Part of their 'experience' as a small business was the current situation you are in. When SA was starting out they couldn't get financing. Once they got going they alloted some of their profits to help finance other small businesses.
Sam Adams might be able to help you out. Part of their 'experience' as a small business was the current situation you are in. When SA was starting out they couldn't get financing. Once they got going they alloted some of their profits to help finance other small businesses.
Most people in your situation pick up privates investors, call a business lawyer and see what advice they can give you.
Banks only loan money to existing businesses so if the owner can't pay it back, the bank can take the business. If you have nothing for the bank to take from you, they won't lend you money.
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Most people in your situation pick up privates investors, call a business lawyer and see what advice they can give you.
Banks only loan money to existing businesses so if the owner can't pay it back, the bank can take the business. If you have nothing for the bank to take from you, they won't lend you money.
He has no restaurant experince if he is going to pay 60,000 for an existing businsess, You should get it for nothing, seeing you are taking them off the hook, for there lease which they are liable for, Which was probably a 5 year with 3, 5 year options, which this couple is trying to dump cause they paid to much money for cause they signed personally for and bought it when the market was good. I'll tell you what give me 15,000 ill give you a kick in the ass and there your restaurant business..Unless your going to work as the chef or bartender those people are going to steal from you, You will ruin your credit, The government will put a tax lein on you and your house cause there is always someone in your face for money, Minium wage is way to high, if illegals ever get citzenship, your going to have teach a 17 year old white kid how to make bolongese sauce, which he wont wanna work weekends cause, he has to take some girl to prom, or you have to deal with some waitress on her period, Take your 15 grand buy a foreclosure condo for 50 grand and rent it out, once you sell it when the market turns around take your 150,000 and open a small place with 15 tables and a small bar, you'll have a small chance to make it, if you can find a bad ass restauranteur like myself....You got a pipe dream trying to open something with 15 grand, and no experince, hate to see you run your life..Olive garden 12.95 a person three courses, chilis 2 for 20, buffalo wild wings, 50 cent wings, dollar beer joints everywhere, sell a thousand beers? great you made 1,000 dollars where you going with that? Joes Seafood, half dozen crab claws for 20 bucks, dollar key lime pie, Wild Fire 4 cousres 80.00 bucks, Pizza places 10.00 dollars for a pizza, milk and cheese are 1.80 a pound you gotta put 16oz of cheese on a pizza? cost you a 1.80 no box, no sausage, no dough yet, Save your money kid
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He has no restaurant experince if he is going to pay 60,000 for an existing businsess, You should get it for nothing, seeing you are taking them off the hook, for there lease which they are liable for, Which was probably a 5 year with 3, 5 year options, which this couple is trying to dump cause they paid to much money for cause they signed personally for and bought it when the market was good. I'll tell you what give me 15,000 ill give you a kick in the ass and there your restaurant business..Unless your going to work as the chef or bartender those people are going to steal from you, You will ruin your credit, The government will put a tax lein on you and your house cause there is always someone in your face for money, Minium wage is way to high, if illegals ever get citzenship, your going to have teach a 17 year old white kid how to make bolongese sauce, which he wont wanna work weekends cause, he has to take some girl to prom, or you have to deal with some waitress on her period, Take your 15 grand buy a foreclosure condo for 50 grand and rent it out, once you sell it when the market turns around take your 150,000 and open a small place with 15 tables and a small bar, you'll have a small chance to make it, if you can find a bad ass restauranteur like myself....You got a pipe dream trying to open something with 15 grand, and no experince, hate to see you run your life..Olive garden 12.95 a person three courses, chilis 2 for 20, buffalo wild wings, 50 cent wings, dollar beer joints everywhere, sell a thousand beers? great you made 1,000 dollars where you going with that? Joes Seafood, half dozen crab claws for 20 bucks, dollar key lime pie, Wild Fire 4 cousres 80.00 bucks, Pizza places 10.00 dollars for a pizza, milk and cheese are 1.80 a pound you gotta put 16oz of cheese on a pizza? cost you a 1.80 no box, no sausage, no dough yet, Save your money kid
He has no restaurant experince if he is going to pay 60,000 for an existing businsess, You should get it for nothing, seeing you are taking them off the hook, for there lease which they are liable for, Which was probably a 5 year with 3, 5 year options, which this couple is trying to dump cause they paid to much money for cause they signed personally for and bought it when the market was good. I'll tell you what give me 15,000 ill give you a kick in the ass and there your restaurant business..Unless your going to work as the chef or bartender those people are going to steal from you, You will ruin your credit, The government will put a tax lein on you and your house cause there is always someone in your face for money, Minium wage is way to high, if illegals ever get citzenship, your going to have teach a 17 year old white kid how to make bolongese sauce, which he wont wanna work weekends cause, he has to take some girl to prom, or you have to deal with some waitress on her period, Take your 15 grand buy a foreclosure condo for 50 grand and rent it out, once you sell it when the market turns around take your 150,000 and open a small place with 15 tables and a small bar, you'll have a small chance to make it, if you can find a bad ass restauranteur like myself....You got a pipe dream trying to open something with 15 grand, and no experince, hate to see you run your life..Olive garden 12.95 a person three courses, chilis 2 for 20, buffalo wild wings, 50 cent wings, dollar beer joints everywhere, sell a thousand beers? great you made 1,000 dollars where you going with that? Joes Seafood, half dozen crab claws for 20 bucks, dollar key lime pie, Wild Fire 4 cousres 80.00 bucks, Pizza places 10.00 dollars for a pizza, milk and cheese are 1.80 a pound you gotta put 16oz of cheese on a pizza? cost you a 1.80 no box, no sausage, no dough yet, Save your money kid
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Quote Originally Posted by RemiMartin:
He has no restaurant experince if he is going to pay 60,000 for an existing businsess, You should get it for nothing, seeing you are taking them off the hook, for there lease which they are liable for, Which was probably a 5 year with 3, 5 year options, which this couple is trying to dump cause they paid to much money for cause they signed personally for and bought it when the market was good. I'll tell you what give me 15,000 ill give you a kick in the ass and there your restaurant business..Unless your going to work as the chef or bartender those people are going to steal from you, You will ruin your credit, The government will put a tax lein on you and your house cause there is always someone in your face for money, Minium wage is way to high, if illegals ever get citzenship, your going to have teach a 17 year old white kid how to make bolongese sauce, which he wont wanna work weekends cause, he has to take some girl to prom, or you have to deal with some waitress on her period, Take your 15 grand buy a foreclosure condo for 50 grand and rent it out, once you sell it when the market turns around take your 150,000 and open a small place with 15 tables and a small bar, you'll have a small chance to make it, if you can find a bad ass restauranteur like myself....You got a pipe dream trying to open something with 15 grand, and no experince, hate to see you run your life..Olive garden 12.95 a person three courses, chilis 2 for 20, buffalo wild wings, 50 cent wings, dollar beer joints everywhere, sell a thousand beers? great you made 1,000 dollars where you going with that? Joes Seafood, half dozen crab claws for 20 bucks, dollar key lime pie, Wild Fire 4 cousres 80.00 bucks, Pizza places 10.00 dollars for a pizza, milk and cheese are 1.80 a pound you gotta put 16oz of cheese on a pizza? cost you a 1.80 no box, no sausage, no dough yet, Save your money kid
SBA an outside possibility if you have other collateral to secure the loan with. For that matter, a HELOC is by far the easiest and cheapest money in the current environment.
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SBA an outside possibility if you have other collateral to secure the loan with. For that matter, a HELOC is by far the easiest and cheapest money in the current environment.
Never doubt anybody else's dreams... People who don't have a dream, don't have much in life.
Some good and sobering advice here. Always keep in mind that every
single business situation is unique. Every single business owner is
also unique. Absorb all the advice that you can find. Use it to put yourself in the best possible position so that you can ultimately be successful. That is what successful people do.
~~~~~ZOSO~~~~~
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Never doubt anybody else's dreams... People who don't have a dream, don't have much in life.
Some good and sobering advice here. Always keep in mind that every
single business situation is unique. Every single business owner is
also unique. Absorb all the advice that you can find. Use it to put yourself in the best possible position so that you can ultimately be successful. That is what successful people do.
He has no restaurant experince if he is going to pay 60,000 for an existing businsess, You should get it for nothing, seeing you are taking them off the hook, for there lease which they are liable for, Which was probably a 5 year with 3, 5 year options, which this couple is trying to dump cause they paid to much money for cause they signed personally for and bought it when the market was good. I'll tell you what give me 15,000 ill give you a kick in the ass and there your restaurant business..Unless your going to work as the chef or bartender those people are going to steal from you, You will ruin your credit, The government will put a tax lein on you and your house cause there is always someone in your face for money, Minium wage is way to high, if illegals ever get citzenship, your going to have teach a 17 year old white kid how to make bolongese sauce, which he wont wanna work weekends cause, he has to take some girl to prom, or you have to deal with some waitress on her period, Take your 15 grand buy a foreclosure condo for 50 grand and rent it out, once you sell it when the market turns around take your 150,000 and open a small place with 15 tables and a small bar, you'll have a small chance to make it, if you can find a bad ass restauranteur like myself....You got a pipe dream trying to open something with 15 grand, and no experince, hate to see you run your life..Olive garden 12.95 a person three courses, chilis 2 for 20, buffalo wild wings, 50 cent wings, dollar beer joints everywhere, sell a thousand beers? great you made 1,000 dollars where you going with that? Joes Seafood, half dozen crab claws for 20 bucks, dollar key lime pie, Wild Fire 4 cousres 80.00 bucks, Pizza places 10.00 dollars for a pizza, milk and cheese are 1.80 a pound you gotta put 16oz of cheese on a pizza? cost you a 1.80 no box, no sausage, no dough yet, Save your money kid
Your just selling the fact that restaurant business is bad, you make solid arguements but at the end of the day millions of people are running successfull joints so your half right I would say. If he has 1000 customers a week which is being real optomistic. With a average spending of 13-17 dollars this guy could make half a million in gross sales or more a year easily. I don't know your background but i've worked at mcdonalds, pizza hut, little ceasars a bar and also a indian restaurant. and ill tell you one thing these places are caking in cash
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Quote Originally Posted by RemiMartin:
He has no restaurant experince if he is going to pay 60,000 for an existing businsess, You should get it for nothing, seeing you are taking them off the hook, for there lease which they are liable for, Which was probably a 5 year with 3, 5 year options, which this couple is trying to dump cause they paid to much money for cause they signed personally for and bought it when the market was good. I'll tell you what give me 15,000 ill give you a kick in the ass and there your restaurant business..Unless your going to work as the chef or bartender those people are going to steal from you, You will ruin your credit, The government will put a tax lein on you and your house cause there is always someone in your face for money, Minium wage is way to high, if illegals ever get citzenship, your going to have teach a 17 year old white kid how to make bolongese sauce, which he wont wanna work weekends cause, he has to take some girl to prom, or you have to deal with some waitress on her period, Take your 15 grand buy a foreclosure condo for 50 grand and rent it out, once you sell it when the market turns around take your 150,000 and open a small place with 15 tables and a small bar, you'll have a small chance to make it, if you can find a bad ass restauranteur like myself....You got a pipe dream trying to open something with 15 grand, and no experince, hate to see you run your life..Olive garden 12.95 a person three courses, chilis 2 for 20, buffalo wild wings, 50 cent wings, dollar beer joints everywhere, sell a thousand beers? great you made 1,000 dollars where you going with that? Joes Seafood, half dozen crab claws for 20 bucks, dollar key lime pie, Wild Fire 4 cousres 80.00 bucks, Pizza places 10.00 dollars for a pizza, milk and cheese are 1.80 a pound you gotta put 16oz of cheese on a pizza? cost you a 1.80 no box, no sausage, no dough yet, Save your money kid
Your just selling the fact that restaurant business is bad, you make solid arguements but at the end of the day millions of people are running successfull joints so your half right I would say. If he has 1000 customers a week which is being real optomistic. With a average spending of 13-17 dollars this guy could make half a million in gross sales or more a year easily. I don't know your background but i've worked at mcdonalds, pizza hut, little ceasars a bar and also a indian restaurant. and ill tell you one thing these places are caking in cash
Your just selling the fact that restaurant business is bad, you make solid arguements but at the end of the day millions of people are running successfull joints so your half right I would say. If he has 1000 customers a week which is being real optomistic. With a average spending of 13-17 dollars this guy could make half a million in gross sales or more a year easily. I don't know your background but i've worked at mcdonalds, pizza hut, little ceasars a bar and also a indian restaurant. and ill tell you one thing these places are caking in cash
500,000 a year gross for a restaurant, you would be out of business in less than a year, unless your selling hotdogs out of a cart or cakes out of your home. Stick with little what you know, which is nothing, Millions of people are not running successfull restaurants, Indeptant restaurantuers are stuggling to keep the doors open and just stay in buisess in this econmony. Yes the worst is behind us, However, labor costs, rising food costs and greedy coperations will drive prices down, example you working at mcdonalds, little ceasars, pizza hut,
You want to open a restaurant open one in india, They dont eat meat, vegetables are cheap there is a billion people out there, no minium wage, there is no good food, and county regulations wont cost you 200,000 to do build out a restaurant, papa johns and little ceasars are killing it, and there food sucks,and its a growing economy..15 grand wont even get you a deposit from the gas company to turn on the meter, unless you have a coperation that has been in buinsess for 10 years, or your not smart enough to get a surety bond, which the gas company will tell you they cant take unless you got a sharp like myself wheeling a dealing. Stay at little cesars or mc d's or open a restaurant and do your pitty 500 gs a year, and email in a 6 months so i can pick up your joint for 10 cents on the dollar. Thanks dont mean to be negative, just the hard truth,
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Quote Originally Posted by Roonie:
Your just selling the fact that restaurant business is bad, you make solid arguements but at the end of the day millions of people are running successfull joints so your half right I would say. If he has 1000 customers a week which is being real optomistic. With a average spending of 13-17 dollars this guy could make half a million in gross sales or more a year easily. I don't know your background but i've worked at mcdonalds, pizza hut, little ceasars a bar and also a indian restaurant. and ill tell you one thing these places are caking in cash
500,000 a year gross for a restaurant, you would be out of business in less than a year, unless your selling hotdogs out of a cart or cakes out of your home. Stick with little what you know, which is nothing, Millions of people are not running successfull restaurants, Indeptant restaurantuers are stuggling to keep the doors open and just stay in buisess in this econmony. Yes the worst is behind us, However, labor costs, rising food costs and greedy coperations will drive prices down, example you working at mcdonalds, little ceasars, pizza hut,
You want to open a restaurant open one in india, They dont eat meat, vegetables are cheap there is a billion people out there, no minium wage, there is no good food, and county regulations wont cost you 200,000 to do build out a restaurant, papa johns and little ceasars are killing it, and there food sucks,and its a growing economy..15 grand wont even get you a deposit from the gas company to turn on the meter, unless you have a coperation that has been in buinsess for 10 years, or your not smart enough to get a surety bond, which the gas company will tell you they cant take unless you got a sharp like myself wheeling a dealing. Stay at little cesars or mc d's or open a restaurant and do your pitty 500 gs a year, and email in a 6 months so i can pick up your joint for 10 cents on the dollar. Thanks dont mean to be negative, just the hard truth,
Never doubt anybody else's dreams... People who don't have a dream, don't have much in life.
Some good and sobering advice here. Always keep in mind that every
single business situation is unique. Every single business owner is
also unique. Absorb all the advice that you can find. Use it to put yourself in the best possible position so that you can ultimately be successful. That is what successful people do.
Agree on all counts. But the naysayers do make some good points. The money doesn't seem to make sense if this thing is profitable. Have you seen the books? And if you don't have any experience running a restaurant, you better either get some or find someone with some. It's generally huge hours, nagging problems, and not usually a way to get rich.
People who do it and do it successfully have a serious passion for it. If you don't, I'd look elsewhere.
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Quote Originally Posted by TheGoldenGoose:
Never doubt anybody else's dreams... People who don't have a dream, don't have much in life.
Some good and sobering advice here. Always keep in mind that every
single business situation is unique. Every single business owner is
also unique. Absorb all the advice that you can find. Use it to put yourself in the best possible position so that you can ultimately be successful. That is what successful people do.
Agree on all counts. But the naysayers do make some good points. The money doesn't seem to make sense if this thing is profitable. Have you seen the books? And if you don't have any experience running a restaurant, you better either get some or find someone with some. It's generally huge hours, nagging problems, and not usually a way to get rich.
People who do it and do it successfully have a serious passion for it. If you don't, I'd look elsewhere.
My brother owns a small diner up north and here's advice he would give you.
1) Be prepared to be married to your work. He very rarely takes a day off because quite honestly he can't afford to.
2) All of the chain restaraunts out there will kill you in the long run. Breakfast and lunch are his big draws and it's hard to compete with the big boys.
3) Good help is extremely hard to find in that business, much less keep. Mostly family works for him. As a small business you can't pay people much money and forget about any benefits besides a free meal or something.
4) Be prepared for huge hidden costs. AC units go down, lots of maintenance on commercial equipment, dealing with health inspectors etc..
5) Carry insurance. This may sound stupid but lots of people in this business don't. Slip and fall conmen are everywhere and it takes some time to recover from a 5 or 6 figure hit. Not to mention people claiming they got sick from your food, burned from a cup of coffee or tons of other bs.
The whole deal doesn't make sense to me mostly because you don't have the money to begin with it sounds like. I think this is the type of venture you should only go in to with liquid cash you can afford to lose. You need your credit freed up in the event something goes wrong.
All that being said, best of luck whatever you decide.
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My brother owns a small diner up north and here's advice he would give you.
1) Be prepared to be married to your work. He very rarely takes a day off because quite honestly he can't afford to.
2) All of the chain restaraunts out there will kill you in the long run. Breakfast and lunch are his big draws and it's hard to compete with the big boys.
3) Good help is extremely hard to find in that business, much less keep. Mostly family works for him. As a small business you can't pay people much money and forget about any benefits besides a free meal or something.
4) Be prepared for huge hidden costs. AC units go down, lots of maintenance on commercial equipment, dealing with health inspectors etc..
5) Carry insurance. This may sound stupid but lots of people in this business don't. Slip and fall conmen are everywhere and it takes some time to recover from a 5 or 6 figure hit. Not to mention people claiming they got sick from your food, burned from a cup of coffee or tons of other bs.
The whole deal doesn't make sense to me mostly because you don't have the money to begin with it sounds like. I think this is the type of venture you should only go in to with liquid cash you can afford to lose. You need your credit freed up in the event something goes wrong.
All that being said, best of luck whatever you decide.
I agree with a few earlier posts. If you don't have experience in this you may really be in trouble. And whoever said "see the books" is spot on. Look those over, if you don't know what you're looking for hire a CPA. It's too big a risk already to add the difficulty of taking on a place that's already losing money.
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I agree with a few earlier posts. If you don't have experience in this you may really be in trouble. And whoever said "see the books" is spot on. Look those over, if you don't know what you're looking for hire a CPA. It's too big a risk already to add the difficulty of taking on a place that's already losing money.
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