Selling My Business, Will It Be Hard To Get Financed?

[Tyler B.]

So I am an Internet Marketer who hit it fairly big with a website. Currently selling my half and will have significant cash flow from that for the next year (I'll have around half a million but looking to keep real estate capital around $100k). 

Now, I am pretty good at marketing online but I'm fairly new to finance and even general business basics. So I apologize if this comes off noob-like!

I'm worried that I won't be able to prove my income after this buyout goes through. I WILL be getting payments until the end of 2016 but after that I will have no income. (I do have other online projects in the works but they aren't sure things). 

I'm looking at duplexes in the Bay Area (would love to do Marin County) and I'm looking at over $700k for anything decent. 

If I put $50k down and proved my income for the past 2 years would I be able to get solid financing?

My credit score is ~750 and I would be a first time home buyer

Thanks for reading! Feel free to shoot holes in my logic

[Upen Patel]

@Tyler B. It will be hard if not impossible to get a conventional loan once your business is sold. There might be an option to do an asset based loan, but it would depend on your financials at that time.

Your best option is to do the purchase NOW, before your business is sold. That way you are qualified based on the years of business income that you have built.

Otherwise you might have to do a cash purchase later on.


Upen Patel, Mortgage Banker