I have a client who is leasing his restaurant and now wants to purchase.
Comm./Hardmoney lenders like to have a hefty downpayment...or limit the seller carryback amount
The seller agreed to sell for 3.5MM...
The purchaser has a lease that says he can receive 1.0MM in equity credit, thus he only has to pay 2.5MM with a bank loan. How should this deal be structure to make it fundable?

Obtain a lease purchase agreement, use cancelled checks to prove payment history, and present it as a refinance, rather than a purchase. You should have no problem getting it done with the equity in the property......it's simply a cash out refinance. How's the credit? I may be able to come up with a lender for you.

Chrissi,

Thank you! His credit is not so great 531 middle score, yet the business has great income $2.0M/yr, and he has been in this industry for 25 years. Would you happen to have an example of with the contract should say. Thank you again!

By any chance, does an LLC operate the business? Why don't you give me a call and I'll go over a few other things with you....there may be ways he can structure the application to get the best possible terms.

great...I will find out more information from the purchaser and call you this afternoon.