Help please, don't flame me!!

[CrzyArmyWife]

Okay, I guess I'll give the situation:
Came across a local bar that is for sale. I have asked all the recommended questions. Owner is wanting to sell to enjoy retirement. Last year in an attempt to get more off time they've only been open 4 days a week. Still have active bands on weekend nights.
Here is our stance- Hubby and buddy will be the owners. They are both active duty Army (can I get a Hooah?!?) and are due to deploy (again) to Iraq in a matter of days. I have special POA's for both. I have 2nd guys soon to be spouse to help as well. I have been a general manager for a retail location in the past, have owned my own retail business, and have tended bar in the past. I will do the running. Hubby has business management skills and is going to school for it as we speak. We are slightly over extended on credit. Partner is an excellent credit score, a good invester in the market, and a all around good guy. Due to the economy, getting a loan is looking grim. Neither of us has enough for 20% down right now. We have a solid business plan. Should we keep trying for a loan or ask the owner to finance?
I have a good/nervous feeling about this whole thing. I know I have excellent customer service skills and can pick up about anything. Just wondering what are people's thoughts on buying a bar right now and if anyone else had a similiar situation. Is owner financing a good option? I'm not sure he's up for it. But seeing the economy is as it is, I think he might. :confused:

[David]

Thank you and your husband for all that you do and have done for us. Hoorah

[Jallen0]

Ask the owner to finance. He knows that credit is tight and if your plan to him looks good (after all he has owned that business for awhile and knows it well) then he just might finance you.

You really have nothing to lose here.

And if you get this MAKE SURE that you attend The Show! and listen to the sessions. It will be well worth the cost.

[UnderDawg]

i was asking the same questions here a few weeks ago;
if you do ask for owner financing ( as we did ) you better get a extra
clause written in there for an extention. If new owner carries you, (lets say 3 years) who knows if there's going to be a bank left to give you a loan at that point?? Chances are your Balloon Payment will be due, and if
you cant cover it, you lose your bar back to the original owner.
and negotiate the % rate, make it cheaper than a bank loan but better than a CD return . win win for you and owner.
we had the clause put in for an additional term if economy is still bad and bank are not lending, Plus bar & restaurants have the highest failure rates, so even in a good economy the banks want to look the other way when you walk in the door. We also asked for a peformance based payment, but that didnt fly.
I'm still open to ideas or suggestions too, as we havnt signed the papers yet , but we are meeting tomorrow for due diligence and inventory, and
other tid bits of info.

Slum Dawg
smell in the air

budmanoh@aol.com if any one want to throw some ideas my way;
sometimes i get lost in all these threads

[WIDAVE]

I just spoke to local banker who said they always get 25% down for a bar business. They are willing to loan with 25% down and good credit. I think if you can put even 10% down and owner will carry some, you could get a partial loan which would make current owner happy.

[owneroper]

good luck with a bank loan on a bar, couldnt get one in the good ol days (2 years ago) with 200% collateral and I have excellant credit, try owner financing. My "guaranteed" line of credit went from 50,000 to 10,000 in 6 months on my bar

[Crazy Mike]

I wouldn't do it if you have to borrow....but that's just me. Well maybe an owner finance, maybe, if the terms are good. And they might be if they want out bad enough.

And THANK YOU so much for the sacrifices you and your husband and your friend's families have made....HooAH!