Using an SBA7a Loan to Purchase a Janitorial Business

Using an SBA 7a loan to purchase a janitorial business
Question: Hey Beau, I have an opportunity to buy an existing janitorial business. It’s been in business for 3 years and is cash-flowing well. It’s on the market for $265,000. It’s doing about $500,000 in annual gross revenue. I’m waiting for the seller’s financials.

How would you recommend I start the due diligence process?

Thanks in advance,
Joe

Timestamps
[00:10] Go to investorfinancingpodcast.com/ask to ask other questions
[01:00] Get the seller’s three years’ tax returns and interim year-to-date statement
[01:16] You have to see what the net is, if there’s any add backs and if they are running personals expense
[01:43] Factoring in the debt payment
[01:45] Check if there’s enough cash flow
[02:14] Get the tax returns and feel free to book a call at https://investorfinancingpodcast.com/rumbleto find the right banker
[02:30] What’s the seller discretionary income
[02:39] Determine of what you are going to offer to the seller for payment or purchase price

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#businessacquisition #businessloans #sba7a

_________________________________________________________________________________________________ About Beau: Beau Eckstein is a real estate entrepreneur, TV personality, and commercial mortgage advisor, specializing in construction financing and multi-family lending.
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