Investor willing to finance purchase of my stores for buyer.

Yesterday I spoke to a potential buyer for my business and real estate. He would like to buy the real estate and is willing to finance the business for a qualified buyer/operator. Here is the deal he indicated that he would do:

He buys both the real estate and the business from me.

Business pays market rent for both locations.

He will finance the business purchase for the operator on the following terms:
Operator puts down about 20% on the business.
Loan for the balance at 2% over prime.
20 year amortization with a 48 month balloon. (at that point a proven operator goes to the bank to re-fi the balance)

The operator will need to negotiate directly with him on the purchase price and the lease. I know this guy reasonably well. Our children are friends. I have never done any kind of a deal with him but he strikes me as a solid, reasonable guy. He certainly has the money.

If you know anyone that would like to get into a high volume pizza shop on very good terms drop me a line. A deal does not get much better than this unless you bring your own money for the whole deal. Depending on the final details, you would need 60-80K cash to get into this.

I have posted the general financial info on my two locations elsewhere but sales are above 600K and owner’s discretionary cash flow is about 125-135K so there is plenty there to cover the financing. We have a delco that does a little over 450K and a seasonal slice location that does about 160K in four months. I have owned both since 1999. All sales are declared and the financials are legit and transparent.

We are located in a major Colorado ski resort.

Re: Investor willing to finance purchase of my stores for bu

Tire kickers abound… Still looking for either a buyer that wants the whole thing to run for themselves or for somebody that justs wants the business. I have a list of people that want the real esate.