The Secrets of
Business and Marketing Wizardry Newsletter
Volume 7, Issue 3, Date 3/7/2003
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THE SECRETS OF BUSINESS AND MARKETING WIZARDRY
Volume 7 Issue 3 March 2003
Joe Trevison: Publisher/Author
Cheri Carlson Co-Publisher/Editor
In This Issue:
Buying a Business with Little Down Payment
Author: Joe Trevison MBA/CPA
BUYING A BUSINESS WITH LITTLE DOWNPAYMENT
One of my students became a client and love when this happens.. We will call him Steve. Steve wanted to buy a restaurant and apartments. This is the Key to Riches which was discussed in the February 2003 newsletter.
This 70-year-old lady who owned the property wanted $93,000.
IS THIS A LOT OF MONEY?
This is not really a lot of money. It depends on the return of investment. How would the client know before he purchased the property? Anyone buying a business should see the tax returns of the business for the last 5 years at the very least. And really study these returns. The problem is the women did not have any tax returns. She said they were in bankruptcy court.
The first thing I had Steve check for was there any liens on the property. So far he has found none. Then he was to get all the receipts and expense records the 70-year-old owner had.
But that was not enough. WHAT I TOLD STEVE TO DO: make an offer to this woman for $10,000 for a 5 year lease. At the end of the five years if the business can sustain a profit and pay her the other $83,000.00 Steve would buy the property. If the property could not sustain a profit etc. Steve would let the lease lap. He would be out only $10,000.00.
Steve would have to earn and put away $1215.42 each month at 5% interest in order to pay for the property. He would have to earn far more money than the payments to the fund. But by the end of five years he would know if he could make a good profit or return the property.
But look at this if this works he would have the business paying for the property. In fact this is almost like getting the property for an outlay of only $10,000.
Could you do this? Look around. The world has enough money and love for all those that seek it
Put a small classified in the newspaper: Business Entrepreneur would like to lease your business? A nice up front payment for the lease is possible. Call Jack at 814-5555-5555.
If you have any questions on taxes, business or marketing just call me at 814-456-2601. Or email me at: Joetrevis@aol.com . My site is Joetrevison.com.
Copy righted Trevison & Trevison Inc. 2003
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| Copyright Joseph J. Trevison Not to be reprinted, resold, or
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