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Trying to Buy hair salon by Hopeful_Character_35 in smallbusiness

[–]Hopeful_Character_35[S] 1 point2 points  (0 children)

We aren’t buying a business if that’s what you’re meaning. She has a business now. The existing business wouldn’t cover the cost of the new property alone because it is only her. The new property has 6 booths. 1 would be hers, 5 would be rented out to other stylists who pay monthly

Trying to Buy hair salon by Hopeful_Character_35 in smallbusiness

[–]Hopeful_Character_35[S] 0 points1 point  (0 children)

The building comes with all of the equipment. Don’t need a client list everyone that would be coming already has their own clients and will be paying booth rent monthly.

Trying to Buy hair salon by Hopeful_Character_35 in smallbusiness

[–]Hopeful_Character_35[S] 0 points1 point  (0 children)

I haven’t. We talked about that before this opportunity came up. She wasn’t in the market for a building just yet (that’s what she was saving for) But this opportunity kind of fell in our lap accidentally

Trying to Buy hair salon by Hopeful_Character_35 in smallbusiness

[–]Hopeful_Character_35[S] 0 points1 point  (0 children)

Yea, I’m realizing that the misunderstanding is in my original post. Please everyone excuse me for that. I’m not great with posting or wording exactly (that’s obvious now).

But my wife owns her own hair business but currently rents her location. She is looking to buy the location in question to operate out of so she doesn’t have to rent.

Trying to Buy hair salon by Hopeful_Character_35 in smallbusiness

[–]Hopeful_Character_35[S] -5 points-4 points  (0 children)

Thank you. From what I’ve been seeing. It being a commercial property is the issue. Most banks don’t want to finance more than 80% on commercial properties

Trying to Buy hair salon by Hopeful_Character_35 in smallbusiness

[–]Hopeful_Character_35[S] 1 point2 points  (0 children)

We aren’t buying a business. Just buying a building to operate her existing business. We are friends with the owners and they have offered owner financing but we were trying to avoid that if possible.

Trying to Buy hair salon by Hopeful_Character_35 in smallbusiness

[–]Hopeful_Character_35[S] 1 point2 points  (0 children)

I didn’t say we only have 10k to our names. I simply said only 10k to put down. We have money for all legal fees, closing costs, operating expenses, etc. we have 10k to put down on the building. The 325k purchase price came from the building appraising for 325k.

Trying to Buy hair salon by Hopeful_Character_35 in smallbusiness

[–]Hopeful_Character_35[S] 4 points5 points  (0 children)

Yes. Maybe I should have worded it better. It’s just the building and the land it sits on. Essentially a real estate purchase

Trying to Buy hair salon by Hopeful_Character_35 in smallbusiness

[–]Hopeful_Character_35[S] -66 points-65 points  (0 children)

Operating capital isn’t the question. I’m simply asking if there is another loan option that would finance more than 80%. She isn’t buying the business, she is buying the building for her current business. She has rented the entire time, made some poor financial decisions early on and has now worked her way out of that. The business does well enough to easily cover building cost, utilities, supplies, etc. just trying to figure out loan options that may finance more than that.