Restaurant property investor wanted, Springfield Illinois
I have an opportunity to invest in a restaurant here in Springfield Illinois. The opportunity was just brought to my attention so I don't have a hole lot a details. I will post what I have and any question you may have I will do my best to answer. The restaurant was a well know restaurant with a lot of business. the owner died about 7 yrs ago and the son really didn't put in any effort into the business, I'm not saying he ran it into the ground, he just didn't do any good to the business. the restaurant has been closed for about 2-3 yrs. They are asking 250k for the building, a partner and I have been talking about buying the building and maybe opening up the restaurant again.
The information I'm look for.
1 I'm thinking about buying the building with a LLC
2 open up the restaurant with another LLC. I was thinking about starting with the SBA (small business administration) for a loan to start the restaurant business.
1 The building asking price 250k, I'm not an appraiser, but I thinking for around these parts that is not far off, and I believe it would appraise for that. There is some repairs that need to be done, I think about 60k would cover those. Mainly clean up and to make sure all the equipment is up to code.
I think a down payment would be about 50-62k
2 The restaurant I feel that I could start it up for about 100k if not less. I figured that going to SBA, I would be able to get most of the start up capital, mainly because I'm creating jobs.
For the restaurant I probable would need about 20-25k
I personally have a fico score in the low 800's and my partner has good credit as well. My partner and I would be able to come up with about 10-15k or so, but that is far from the 70-80k, I'm thinking I may need. I also think that if I approach the SBA with, the starting the restaurant as a business, with the purchase of the property, as a package deal they might do something like that. Then my down payment maybe smaller maybe about 50-60k.
OK, tell me what you think, or ask your question, and if, you maybe interested, tell what you need to maybe help out with the down payment. Would it be, so many point, at what % rate, how soon would you want the note to be paid off. ( I know as soon as possible)
I look forward to hearing from all of you. Thanks Brian