Hi,

I hope that a couple of you can give me some advice. I put a bid in on 2 auto repair shops (each is their own C-corp) that are being sold as one business with two locations (one on each end of town). They do not have land with them. The offer was for 600k with 10% down from me and 10% for a seller second. The loan would have been SBA backed.

The Seller rejected my offer and said that he does not want to do seller financing as he needs the cash for another venture. He also reviewed his financials again and realized that income is increasing more than he thought, so he now wants a full price offer of 700k. The two shops net 250+ to the owner and there are managers in both locations that would stay in place. The shops are several years old.

1. Is there a way to finance 10% down without real estate on that size loan?

2. Will a lender allow you to borrow unsecured funds or money from a family member to make up the other 10%? I work in the residential mortgage side of the world and know that we don't permit unsecured loans as a portion of the down payment.

Thank you.

the answer would be no. You def need more than 10% down esp for a loan that size. Anyone that tells you otherwise is being nice. If this does not work out, seek another property with real estate and perhaps a bit cheaper; SBA can step in and so can some other lenders (and do keep an eye on your credit).