Getting a loan

[Nuphoenix]

Hi All,
I trying to buy my first car wash. There is a trustee running the business for the last few years and he has been pocketing the money (it's cash only) and only reporting to the IRS enough to show the business as breaking even. I tried an SBA 7(a) loan since I am a disabled Vet but they looked at his tax returns and said no. What options do I have? I know the location makes about 36,000 net (trustee was very honest about everything) ,but I can't prove it. Do I try to just get a mortgage and buy the property, building, and equipment? Purchase is 80,000 for everything 1 IBA, 2 SS bays, 2 vac islands w/3 vacs, 4 vending machines, and 1 changer, all parts and equipment including all the quarters. I really want this car wash so I can have a purpose in life again.

 

[Car_Wash_Guy]

I'd ask the owner if he was willing to hold the note. One option would be to have him hold the note 3-5 years, during which time you can correct the financial issues and apply for a traditional loan and pay him off.

 

[Greg Pack]

Yeah, current trustee is trying to have his cake and eat it too. This is one of the reasons that skimming large amounts of cash is a bad idea. You're going to have to come up with funds from somewhere else (perhaps a home equity loan)or he is going to have to hold the note.