- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: At what point would you let someone purchase a piece of your company...
Posted on 8/30/15 at 2:37 pm to CajunAlum Tiger Fan
Posted on 8/30/15 at 2:37 pm to CajunAlum Tiger Fan
Yea, I see that now. However, given that the current property owner is offering to finance using typical mortgage terms I wouldn't bring him on as a business partner.
1
Posted on 8/31/15 at 9:31 am to CajunTiger92
This might be too simplistic of an opinion, but I'll give it a go...
From the property owners side of things, would he not be in it for the profit wether he sell the property now or later? Basically he sees a value in your company worth more in the long run than what he can make on the property now if he sold it. If this is true then he will most likely not accept a "cap" on the profits.
From the property owners side of things, would he not be in it for the profit wether he sell the property now or later? Basically he sees a value in your company worth more in the long run than what he can make on the property now if he sold it. If this is true then he will most likely not accept a "cap" on the profits.
Posted on 8/31/15 at 10:04 am to HamCandy
I have been thinking more about it and this is how I look at it, but tell me if I am wrong.
The value of a 300K discount is really worth more than 300K to me. If I financed 300K over 20 years from a bank, it would cost me about 450K. I would also be saving another 1300 a month on my note compared to what my lease is. That is another 312,000 in savings over 20 years. Total of $762,000, and again I would own the building in 20 years opposed to now where I am just leasing.
So if I had something structured where he would receive lets say about 500K over 20 years, it would be a win/win, correct?
The value of a 300K discount is really worth more than 300K to me. If I financed 300K over 20 years from a bank, it would cost me about 450K. I would also be saving another 1300 a month on my note compared to what my lease is. That is another 312,000 in savings over 20 years. Total of $762,000, and again I would own the building in 20 years opposed to now where I am just leasing.
So if I had something structured where he would receive lets say about 500K over 20 years, it would be a win/win, correct?
Posted on 8/31/15 at 7:17 pm to jsquardjj
The owner finance deal without getting into you business is more of a win/win. He gets (presumably) a higher interest rate than what he can get at a bank, isn't responsible for building maintenance and doesn't have to market/pay a commission on the sale. You secure your location, have a better monthly cash flow position and own a building.
The big downside of the profit sharing deal is that you are bringing on a business partner. This means he potentially could question how you are running your business (by questioning how the profits have been calculated). This could get messy including a lawsuit.
The big downside of the profit sharing deal is that you are bringing on a business partner. This means he potentially could question how you are running your business (by questioning how the profits have been calculated). This could get messy including a lawsuit.
Posted on 8/31/15 at 7:39 pm to CajunTiger92
^
+1
+1
Posted on 9/1/15 at 7:05 am to jsquardjj
Also, maybe you haven't spoken with the right banker. Want some contacts for additional lenders?
Posted on 9/1/15 at 9:32 am to Tiger at Law
Thanks for the input. I think I am leaning towards just waiting until next year and hoping the offer to purchase is still on the table.
Tiger at Law, yes please send any information. I am looking for a lender that will allow 15 percent down opposed to 20-25, otherwise i will need to wait.
Tiger at Law, yes please send any information. I am looking for a lender that will allow 15 percent down opposed to 20-25, otherwise i will need to wait.
Posted on 9/1/15 at 10:33 am to jsquardjj
Where are you located?
If you are in the Baton Rouge area, Jennifer Boggs with Gulf Coast Bank on Perkins does a great job of working with smaller and newer businesses to find lending solutions:
JenniferBoggs@gulfbank.com or phone her directly at 225-757-4402.
Another option is Maureen Dunham with MidSouth Bank:
6919 Corporate Blvd.
Maureen Dunham
Office: (225) 237-3202
Mobile: (225) 328-5142
Maureen.Dunham@midsouthbank.com
Good luck!
If you are in the Baton Rouge area, Jennifer Boggs with Gulf Coast Bank on Perkins does a great job of working with smaller and newer businesses to find lending solutions:
JenniferBoggs@gulfbank.com or phone her directly at 225-757-4402.
Another option is Maureen Dunham with MidSouth Bank:
6919 Corporate Blvd.
Maureen Dunham
Office: (225) 237-3202
Mobile: (225) 328-5142
Maureen.Dunham@midsouthbank.com
Good luck!
Posted on 9/1/15 at 1:40 pm to jsquardjj
Not worth it.
Sounds like a yearly headache to pay out and if you are paying more often then it sounds like a massive waste of time.
Sounds like a yearly headache to pay out and if you are paying more often then it sounds like a massive waste of time.
Posted on 9/1/15 at 3:04 pm to jsquardjj
Commenting on the non-financial side of bringing in a business partner: If that's the way you decide to go, you're best served to get a great lawyer to advise what type of ownership/rights/etc this business partner would be afforded. Increasing cash flow and asset base, while a win, will never outweigh having to deal with a business partner that doesn't have the same goals as you or at least the same expectatation
Page 2 of 2
Popular
Back to top
Follow TigerDroppings for LSU Football News