Cleveland, OH · Member since 2026 · 20 posts · 4 votes
I've came across a couple investors willing to invest into an pre cash flowing convenience store and or smoke shop location but the problem I'm having is in the contracts there putting clauses to where I lose everything even if the business is already empty when I buy it. Who and where do I go to source the correct funding.
If the terms require you to take on all the risk while giving up too much control, it’s probably worth looking at other funding options. The cheapest money isn’t always the best if the agreement puts you in a difficult position. I’d also recommend having an attorney review any investment agreement before signing so you fully understand the clauses and your obligations.
Depending on whether you’re buying the real estate, the business, or both, there may be several financing options available besides private investors. I’d be happy to learn more about your project and discuss different financing structures to see what might be a better fit. Feel free to send me a message.
If the terms require you to take on all the risk while giving up too much control, it’s probably worth looking at other funding options. The cheapest money isn’t always the best if the agreement puts you in a difficult position. I’d also recommend having an attorney review any investment agreement before signing so you fully understand the clauses and your obligations.
Depending on whether you’re buying the real estate, the business, or both, there may be several financing options available besides private investors. I’d be happy to learn more about your project and discuss different financing structures to see what might be a better fit. Feel free to send me a message.
Tyrone, I’d be very careful with any agreement where you’re taking on most of the downside while giving up too much control. I’d definitely have a business attorney review the contract before signing anything.
On the funding side, I work with business owners on options that don’t necessarily require bringing in an equity investor, including business lines of credit, term loans, acquisition/SBA financing when eligible, and revenue-based funding. Smoke shops can be considered a higher-risk industry by some lenders, so finding the right lender and structure is important.
If you know the purchase price, current monthly revenue, how long the business has been operating, and whether you’re buying just the business or the real estate too, I’d be happy to point you in the right direction.
If the terms require you to take on all the risk while giving up too much control, I'd keep looking. The right funding partner should help you grow the business, not put you in a position where one setback costs you everything. Make sure you have an attorney review any agreement before signing, especially if there are clauses you're uncomfortable with.
Depending on whether you're buying the business, the real estate, or both, there may be several financing options available besides private investors. I'm a mortgage broker and work with investors on different financing structures. I'd be happy to learn more about your project and see what options might be a better fit. Feel free to send me a message.
A business and its real estate bought together is a standard SBA 7(a) structure — one loan covers both, and with the store's cash flow behind it, 10–20% down is realistic for an owner-operator. What gets it priced is the asking price, two years of revenue and owner cash flow, and how long the store has been operating. And on that contract clause — have it reviewed before you sign; it matters more than the interest rate.