Forums: Discussions for entrepreneurs and small business.

Robert

What are your thoughts on the likelyhood of being able to attract investors and/or obtaining a business loan for buying established restaurants in the state of the current economy? The plus side of the current economy is that it is a buyers market. I am currently reviewing three different restaurant businesses that are for sale, a fine dining, a seafood and casual dining. all currently gross $1M+  and are well known establishments. The casual restaurant the current owner is willing to carry back all of the financing with $100K down payment. The down payment I am looking to obtain possibly through an Angel Investor.  The fine dining and casual are basically selling for land and building value, the seafood restaurant is a leased property with a 22 year lease. Sorry strayed away from the original question to give you some background.

 

Thanks

Rick

Rick,

I`m not much of an "odds maker" - but I doubt that you will be able to walk into a bank and get a loan to buy a restaurant, since banks are not making loans right now. They haven`t been "big fans of the restaurant business for some time; so banks haven`t been a viable source of funds for restaurants except some NEW franchise purchases through an SBA type deal.

 

That said, I`m still confident that a solid opportunity that is well-prepared (Capital Ready) and properly presented to the right sources can get the capital.

 

If you`d like to discuss your specific situation - send me a PM