SBA 7a Loan to Buy a Business in 2023. Here’s the Secret Sauce…

[@LeoLandaverde]

Need mentorship to buy a business in 6 months? See if you qualify for my BUSINESS ACQUISITION MASTERY PROGRAM: qualify.businessacquisitionmastery.com/application286533 Download my popular CASH FLOW CALCULATOR FOR BUSINESS PURCHASE TOOL: calculator.businessacquisitionmastery.com/optin Download my helpful BUYER DUE DILIGENCE CHECKLIST: checklist.businessacquisitionmastery.com/optin458884

[@luckylondon8291]

Is that possible if someone want to buy a new Business can get approved for SBA loan ? How much down and interest rate will be ?

[@LeoLandaverde]

Yes, it’s possible to get approved for an SBA loan to buy a business. When you say a new business I think you mean an existing profitable business. To get a loan for the start up it’s a whole another story. As far as the interest rates are concerned, prime is 8.25 right now so you can figure it will be at least prime +2 to 3 points, depending on your credit, management experience, type of business.

[@jessicacocco4005]

Thank you for a great video. Im trying to figure all this out. Im looking to buy a resort/ RV park.

[@LeoLandaverde]

That’s a great business and asset class. What area of the country are you looking to invest in?

[@jessicacocco4005]

@@LeoLandaverde I'm not sure yet. Was thinking MO, TN, AL, AR. Maybe Fl if it's on the panhandle. Are you interested in helping me? God knows I could use it 😂

[@LeoLandaverde]

Hey Jessica, I love to help you. I need to ask you a few questions to better understand your situation. Please email me your contact information including best phone number to reach you to [e-mail].

[@ChloeMurphy-f8x]

Leo, this is a great video! Thank you so much for making this. I have a question, hope you could help! I plan to buy a site development/ horizontal construction business. Do you know what lenders like to fund this type of business? Thank you. Looking forward to hearing from you.

[@LeoLandaverde]

multiple lenders could do this. It comes down to how profitable the business is

[@patrickalexis6230]

Thank you for another informative video. I look forward to buying a business with your experience and guidance.

[@LeoLandaverde]

Patrick, Absolutely! Looking forward to help you buy the business with the highest cash flow. I got your email as well. I will respond to it later on today. Let’s do this!

[@williamjverhagen]

What about buying a business with working capital cash of 3 months ? I thought that the working capital was included in the purchase of 3x sde.

[@LeoLandaverde]

Hey William, working capital is never included in the purchase price. It is always negotiated post LOI. In most cases in smaller deals, lender will provide it; in bigger deals, buyers will ask for working capital as part of the APA negotiations. In rare occasions the buyer will provide it

[@sassysilver4451]

The link is not working when you click the button after you enter your information to receive the calculator

[@LeoLandaverde]

I just checked the links and they worked for me. Here are the links: Click on the link below to download my CASH FLOW CALCULATOR for BUSINESS PURCHASE worksheet: leo97eda0.clickfunnels.com/optin1704493342844 Click on link below to download a copy of my BUYER DUE DILIGENCE CHECKLIST: leo97eda0.clickfunnels.com/checklist

[@reliancemedicalbillingsolu4330]

Hi Leo. I am researching how to purchase another business. Your video was very helpful. I have more questions. Can we connect?

[@LeoLandaverde]

Glad to hear my video was helpful. Yes, let’s connect. Email me your contact information to [e-mail].

[@staygreezy107]

I thought a sellers note can cover the 10% percent?

[@LeoLandaverde]

Not necessarily. Lenders want you to have some “skin in the game” by contributing 10% of the purchase price. Do you have 10% saved?

[@ryankeenan351]

Thank you for the video! Was wondering if I have the financials and colateral but lacking in manager expierence..could I still qualify? I do manage rental properties for myself.

[@LeoLandaverde]

Hey Ryan, yes you could depending on the type of industry vertical you’re going after and if there is any licensing required. With some industries, some lenders comfortable with a lot of transferable skills, but some other industries require more technical knowledge. What type of industries are you looking at?

[@ryankeenan351]

@LeoLandaverde Thanks for reply, I like carwash, laundromats , landscaping are the ones I always look for. Can that be bought with little managerial expierence?

[@LeoLandaverde]

Yes, some of the businesses you are looking at required little specific industry, except landscaping if it’s commercial. How soon are you looking to buy? do you have at least 10% down the purchase price?

[@ryankeenan351]

@LeoLandaverde Within a year, yes working on the down payment.. can helocs be used for a down payment aswell?

[@LeoLandaverde]

Yes, you can! However, money you pull out must be in a checking or savings account for at least 2 months with proof of bank statements, what lenders call "seasoned" You totally can.

[@mang349]

Hi, I am currently in negotiations to purchase a small business. We have an executed letter of intent and completed valuation. How would I go about getting in touch with you to get your opinion on certain things?

[@LeoLandaverde]

Email me your contact information to [e-mail]. Please make a reference to this comment in KZbin.

[@HOGNUTTS13]

I'm intrested in purchasing a business and need a 7a loan

[@LeoLandaverde]

Click on the link below to apply funnels.businessacquisitionmastery.com/application-page

[@GiangPhung72]

My husband and I are wanting to buy an SaaS business of $800k value. - Our current combined income is over $400k. - I have 5 years of management experience in a different industry (in person business) and 2 years of management experience in the same industry (online) - Our available cash is $100k. Is it possible to get an SBA loan of $700k? Assuming I will quit my current job ($100k) to fully put my time for the business while my husband will still be working with his job and still bring home 300k/year. Thank you!

[@LeoLandaverde]

Hi, YES, it’s is totally possible in your case. How are your credit scores?

[@GiangPhung72]

@@LeoLandaverde both ours are above 750

[@LeoLandaverde]

You are in excellent shape!

[@GiangPhung72]

Just to be clear, I have years of experience being a manager for the business. I was not the owner. Is it still good? Thanks so much!

[@LeoLandaverde]

you don't have to be the owner. The management experience is what matters to the lenders.

[@ASATechnologies-3]

Thank you for this. Great content

[@LeoLandaverde]

My pleasure!

[@jvillanueva10jv]

Hi Leo, I’m interested in buying an existing business can you help?

[@LeoLandaverde]

I'd love to help you. Please email me your contact information to [e-mail]. Make a reference to this comment on the video.

[@josuesanchez1]

How do you get paid to help people? If its not tmi. Also if its affordable, can we connect?

[@LeoLandaverde]

It depends on how we work together. It depends on what you need. Are you looking to buy a business?

[@josuesanchez1]

@@LeoLandaverde yes im looking to buy an existing business. What do we need from the business?

[@LeoLandaverde]

Please email me your contact info to [e-mail] so I can send you a list of specific questions. Make sure to include the best ph# to reach you

[@ademali8199]

I want to but a exciting business I’m currently running my own business gonna sell it and put down %15 down need help

[@LeoLandaverde]

Cool. What type of business do your own?

[@kcg1414]

i love the breakdown and it's granular enough to be dangerous but there are more expenses to account for than just the debt service to make a great cash flowing asset... i guess i have to assume you're just talking about how to qualify for an sba loan... in this video and not pure net net cashflow like other videos... but, lumping in a question after using your calculator (thanks) i've analyzed 10 deals and they all seem to good to be true so where am i missing the mark? ie: CoC returns of 200% - 50+Cap rate Do you have any other calculators that would consider rent / utilities / payroll (basics) OR Do we assume "cashflow" is AFTER all of the above (assuming that # is not inflated by the Seller...) Great content my friend.

[@LeoLandaverde]

Hi Ken, great question. For the purposes of this discussion, cash flow is either the net income of the business, EBITDA, EBIT or SDE. When examining businesses for sale on bizbuysell.com typically cash flow is after covering all expenses. Does it help clarify things?

[@kcg1414]

@@LeoLandaverde yes this helps but these #'s i am running seem to good to be true... I'll email you directly for more guidance. thank you.

[@LeoLandaverde]

Ken, that's great. I'd love to help you in any way I can. Email your contact info including best ph# to [e-mail]

[@imranishfaq7170]

Hi dear I want to purchase business in usa I am non usa resident I have llc in us I need lone from bank or any lander is that possible

[@JESosa]

Hello Mr.Landaverde I am trying to buy a vending machine route that 62 machines. The seller wants 500k for the business, he claims that it makes 500k in revenue per year, but 250k cash flow. I am a younger guy but this is something I want to get into. Can you help me buy this business?

[@LeoLandaverde]

Thanks for watching my videos. I will respond to the email I received from you.

[@jenniferwallace668]

I’m looking to purchase my in-laws established business it is a one unit property with a tire shop in the back and an antique store in the front so it’s actually two businesses in one building they own at one location I need some help do you think you’ll be able to assist

[@LeoLandaverde]

Hi Jennifer, thanks for reaching out. I'd love to help you. But first, a few questions: Are the businesses profitable? How would you finance the deal? What city and state are you in?

[@aymannakhla70]

Hello . I have everything make me qualify to apply for SBA loan but recently I lost my job and have no income. Can I apply still even if I have no income ?

[@LeoLandaverde]

You may still be able to get a loan because the cash flow for the debt service comes from the business itself. We would have to make a case for your management experience to make a match for the business. You would have to buy fairly soon. What is your timeline? And do you have the down payment?

[@aymannakhla70]

@@LeoLandaverde Thank you for responding. I already emailed you can we chat via emails better and yes I have the down payment and need it ASAP

[@MrCheezybread]

So if you don't have 10 percent of the business price don't even bother. Who has 100k just chilling in the bank 😂

[@LeoLandaverde]

You don’t have to have 100K. You can purchase a 500k business with 50K. A 500K business would probably yield 150K plus per year in cash flow, more than enough to cover the debt service with 10% down. The only way to potentially go with 0% down is if you already own a business, which is very profitable with a strong Balance Sheet.

[@MrCheezybread]

@@LeoLandaverde thanks for that reply

[@LeoLandaverde]

Absolutely. Glad I can help. There’s also the alternative of you getting a couple of investors to put up the 10% on your behalf.

[@MrCheezybread]

​@Leo Landaverde even if I had 40k down payment for a 400k business, I'd still require that post closing liquidatidity to qualify for and sba loan?

[@LeoLandaverde]

Yes, I’d plan for that. However, a varies deal by deal. Some businesses have so much post closing cash flow and debt Service coverage ratios are such that the requirements a little to none. And other cases that’s gonna be substantial post closing liquidity. It really depends.

[@jamarigillon4732]

Let’s say I apply for a business loan with Chase or Bank of America and I get approved for 100k.. would I be able to use the 100k business credit as the 10% down payment in order to buy a business from someone?

[@LeoLandaverde]

Technically, yes, the down payment can come from multiple sources so long as it is traceable. However, the loan payments for the 100k loan would have to factored into your global debt service coverage ratio and so long as it makes sense you are in the clear.

[@jsmash44]

Hello. I am looking to buy a business but I have no experience and no cash. Are you able to help still?

[@LeoLandaverde]

With no experience and no cash it’s gonna be very difficult, if not impossible for you to acquire it without an SBA loan. You could, however, bring in an investor to put the 10 to 15% down payment and you can still have a controlling interest in the business you trying to bite. What type of business are you looking to buy?

[@mohammedal-ahmadi8045]

Not taking a rate in your consideration when you buy a business !!! seriously ?the current rate between %8-%10 . what kind of honesty is this ?

[@LeoLandaverde]

Hey Mohamed, not sure what you mean. Although the interest rates are high, that should not be your first consideration. What matters most is the cash flow from the business can support debt service coverage ratio regardless of what the rate is. Have you watched some of my other videos? Bottom line, you begin with cash flow, see how much cash flow is after you deduct debt service and finally you determine whether or not it’s a good business to buy.

[@mohammedal-ahmadi8045]

@@LeoLandaverde There is a core relation between the cash flow and the interest rate . High interest rate can limit the profit margin .

[@LeoLandaverde]

Sure. I get that. However, SBA 7a loans are variable rate loans which means they go up and down. in Feb 2020 and 2021 rates where much lower than what they are today but what goes up must eventually come down. They will eventually go down. So if found a business with 2.0 DSCR would you just walk away from it? Would it matter what the rate is if you Cash on Cash is 120%+ and a CAP rate of 40? Let me put it another way, if you found your dream home and your global DSCR would pass just fine and had the down payment, would you just walk away from it?

[@carlossandrea8601]

Hi Leo, I watched this video, and I would like to talk to you about my business. I am a veterinarian working in Florida and I would like to explore opportunities to open my own business. Please let me know if you can help me with this and I would give you more details.

[@LeoLandaverde]

Hi Carlos, are you thinking about buying an existing veterinary practice?

[@carlossandrea8601]

@@LeoLandaverde no sure, I am debating if I should buy it an existing practice or building my own practice. I am exploring my options…

[@LeoLandaverde]

Keep me posted! I'd love to help you buy an existing

[@alexflores1189]

Want to buy a existing business 180k .W SBA PROGRAM. But can’t qualify for a loan.. help

[@LeoLandaverde]

Why can’t you qualify for the SBA loan?

[@bobsagit10]

Have you had good luck with SBA to purchase a smaller assisted living/memory care? I have 3 years experience as a resident manager for a care home. My wife has 5+ years as a sales manager at a used car dealership. The business + house is for sale for $950,000. the care home is already licensed for 6 residents, however there are only 3 residents currently grossing $22,000 a month. Safe to assume with 6 residents it would gross minimum 40,000 per month. The house by itself is appraised at 900,000 With 3 residents I’m estimating DSCR to be 2.44%. With 6 residents, and allowing for 10% reduction in income from vacancy, DSCR 4.63%

[@LeoLandaverde]

It’s like you have the right experience that the lenders want. Seems like the debt service coverage ratio is also in line even with some of the assumptions you’re making. I have not been personally involved on an SBA loan of this nature, although I have a SBA Lenders, who have who I would connect you with. Do you have a 10% down payment, the credit score? the post closing liquidity?

[@gladsomeazonim7391]

Hi I can’t find your email as you stated.

[@LeoLandaverde]

[e-mail], please email me your contact information and let’s chat

[@onelove4life71]

Hey Leo I more questions where can I access your email at please

[@LeoLandaverde]

Please send me your contact information to [e-mail] and let's connect.

[@erikw1792]

Hi what is your email?

[@LeoLandaverde]

[e-mail]