I have access to funds to buy a business with $0 down - what's a good business to buy?

[unorthodox]

My Grandpa lent money to a friend which helped launch him into the Fastlane. Last year the man my grandpa helped bumped in to my dad.

The man would like to return the favor and is interested in investing if the opportunity sounds right. He intends to make money on the investment as well. It's kind of like a $0 down commercial loan.

We don't have much money to put up. The guy is willIng to invest up to $1,000,0000.

What's a good business to invest in? I have 8 years experience in running a gas station but the margins after paying the loan and expenses would eat up most of the profits in a gas station business.

The loan would be paid back in 10 years, 120 months, 7% interest annually.

 

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[BlakeIC]

Dude, really?

 

[GuestUser450]

What's a good business to invest in?

No brainer: partner with your grandfather's friend.

 

[sWALK90]

Start your own....with that type of money you have room for error and F*ck ups....

 

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[Ubermensch]

@Cyriex and @axiom

WTF, does @OVOvince have two accounts? lmao

 

[SteveO]

There is not enough information on the terms here. Will principle be paid back each month or will there be a balloon payment in 10 years?

Most existing businesses will be sold on a cap rate. If that rate is listed at a nine, you can count on it being something less. If you purchase something at a seven cap or below and operate it with the same efficiency, money will be lost each month if you are paying back principle and will be break even if you are not.

Most of the time there are capital injections that need to be made which will cost money as well.

If you really know the business and can start it up seamlessly, this is a great idea. Most of the time you will be going through a learning curve though.

The only way I would do this is if it was a startup that I had confidence in the numbers or an existing business that I could improve on.

 

[Mr4213]

If you end up starting a business with that much money.

My only advice would be to be careful. One reason businesses fail is because they have too much starting capital.

Not saying it is a bad thing. Just saying it can be if you do not wield it correctly.

 

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[axiom]

@Cyriex and @axiom

WTF, does @OVOvince have two accounts? lmao

LOL. Just had a great Sunday Morning laugh. Thanks for that.

 

[MJ DeMarco]

My Grandpa lent money to a friend which helped launch him into the Fastlane.

Do you know what "Fastlane" is?

 

[Fox]

Do you know what "Fastlane" is?

He drives a BMW!?

 

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[Deleted35442]

@Cyriex and @axiom

WTF, does @OVOvince have two accounts? lmao

Where did @OVOvince dissapear to? I hope he did what he said he was going to do at least.

$1mm for a gas station. :embarrased: @unorthodox you're better off giving @Ubermensch @axiom and I that $1mm. We will not only make good paying that 7% per year but give you a minuscule amount of equity that will make you a millionaire one day. Just kick back on these forums and talk about yoga and shit.

 

[DaveC]

Not sure if this is serious or not....but with $1M in cash to invest you could probably look at businesses in the $4m-$5m range with an SBA/bank loan and seller financing. This could get you something getting $1m+ a year cash flow. Whatever you do, don't pay all cash.

 

[Ubermensch]

Where did @OVOvince dissapear to? I hope what he said he was going to do at least.

$1mm for a gas station. :embarrased: @unorthodox you're better off giving @Ubermensch @axiom and I that $1mm. We will not only make good paying that 7% per year but give you a minuscule amount of equity that will make you a millionaire one day. Just kick back on these forums and talk about yoga and shit.

Truth.

We should do a recording about what you and me recently began doing with your Wall Street contacts.

 

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[unorthodox]

@BlakeIC thanks for the valuable insight

@MJ DeMarco freedom of the rat race

@DaveC too much leverage

@Cyriex what do you do?

 

[axiom]

LOL I couldn't help but think of Donald Trump when you said, "We don't have much money to put up. The guy is willIng to invest up to $1,000,0000."

Bro, do you realize how many people around here start flourishing businesses by bootstrapping? You have many, many options.

I do think partnering would be a good idea. Get into business with someone who has experience, because it sounds like you don't have much.

Look into the construction industry. I may be a bit biased, but for good reason. It is a $7 Trillion global industry as old as civilization itself. This makes it ripe as hell for disruption.

Great part is that construction has many, many layers to it -- some catering to "lower" amounts of capital.

Ever heard of PACE? It's called Property Assessed Clean Energy. Look it up; there is tons of great information on this forum from @Ubermensch and others. PACE provides financing for energy efficiency upgrades (LEDs, window film, HVAC, etc.)

$1,000,000 can make a big splash when applied to the right thing. So I'll repeat: CONSTRUCTION.

Real estate, energy, and many more historically lucrative industries are dependent on construction.

@Cyriex would be a good person to talk to regarding the investment of money -- especially in construction.

As would @Ubermensch.

Now go make some damn money

 

[Paul Thomas]

An uneducated but motivated buyer is a banker's dream...

 

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[conquer]

Gas stations are capital-intensive, there are better options for small startup capital.

There's a reason why commercial mortgages require 30% down.

There have been many people who have built million dollar empires started with a $100 bucks to a few grand - significantly less than $1million.

If I were you, I would find a service business, work there for 6 months to a year to learn it. Once you understand the fundamentals, start your own company and then ask for a loan if needed.

 

[Deleted35442]

@unorthodox what @axiom said. I recently started and found seemingly instant success from a niche consulting practice that is highly in demand. That's all I care to say here. That, and launching a new brand shortly with samples and tech packs already made that a creative team I work with is doing the execution for, for a profit split the first year.

I am also putting things together on the construction side with PACE expanding upon what @Ubermensch already has. I'm also looking at distressed commercial that can be renovated and funded by accredited and EB5 investors.

 

[Ubermensch]

Where did @OVOvince dissapear to? I hope he did what he said he was going to do at least.

$1mm for a gas station. :embarrased: @unorthodox you're better off giving @Ubermensch @axiom and I that $1mm. We will not only make good paying that 7% per year but give you a minuscule amount of equity that will make you a millionaire one day. Just kick back on these forums and talk about yoga and shit.

A real hustler can turn $0 into $1,000,000.

 

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[Raoul Duke]

[HASHTAG]#landfill[/HASHTAG]

 

[ZCP]

Have you sat down and talked to the 'friend' to see where he might steer you?

Try to create a value producing business that does not need his money. Then, once up and going, fuel fast growth with that money. All along run everything by the 'friend' until he is at the point where he says 'take my money!!' [insert meme here]

 

[Ubermensch]

[HASHTAG]#landfill[/HASHTAG]

We could ensure that this thread goes into the [HASHTAG]#landfill[/HASHTAG] if I tell the forum what I did with your mother last night.

lmfao [HASHTAG]#yourmomjoke[/HASHTAG]

We don't have much money to put up. The guy is willIng to invest up to $1,000,0000.

I feel like I've gotten this e-mail from someone before... and the sender was from some Republic in Africa.

 

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[jazb]

You can do anything, depends how good you are

 

[Ubermensch]

My Grandpa lent money to a friend which helped launch him into the Fastlane. Last year the man my grandpa helped bumped in to my dad.

The man would like to return the favor and is interested in investing if the opportunity sounds right. He intends to make money on the investment as well. It's kind of like a $0 down commercial loan.

We don't have much money to put up. The guy is willIng to invest up to $1,000,0000.

What's a good business to invest in? I have 8 years experience in running a gas station but the margins after paying the loan and expenses would eat up most of the profits in a gas station business.

The loan would be paid back in 10 years, 120 months, 7% interest annually.

Okay, no jokes this time.

If you're going to invest in the USA, I would invest in a construction company, probably an energy efficiency company (that's one thing @Cyriex is doing.

Take a gander at the portfolio companies of private equity firms. Notice how many of them relate to "green," "sustainability," "clean," and "efficiency." All energy-related.

Fact: 5 out of 10 of the fastest growing small business industries in the USA are connected to the construction industry.

Fact: Margins in the construction industry, depending on the trade, can be as high as 20 - 60%%, depending on the trade, and which part of the procurement chain you're in.

 

[Josh Shogren]

If I was you I would look into buying established websites that are making money each month and build out a small portfolio of around $250k-$500k. If you purchase the sites properly and at market value you would be seeing a monthly cashflow of around $10,000 - $20,000. I would spend some of the other money on building a small team that would run help you run these online businesses for you.

Doing this would only cost you around half of your $1m and it will provide some nice cashflow. To find these sites I would look at Flippa or FE International. In your price range, I would probably lean more towards FE International as they sell higher priced sites.

Ideally, you would be able to find 3-5 different websites that are making a solid amount of money and don't require too much work (that is what your team is for).

I wish I was in your position, right now I am still working with sites under the $100k mark but I am working on building up my own portfolio og sites that will eventually get into the mid-six figures at some point.

 

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