All Forum Posts by: Leslie Robertson

Thanks for the reply, 

so update the daycare IS still in startup stage. Last year I'd spoken with a few "private investors" showing the projections but I found the terms unreasonable. One offer was for full funding of project at $700K with equity financing for 10 years at 40% profit share plus loan payment @ 18.5% compound annually with decisions making power,

Another investor's wasn't able to acquire full funding for the offer they proposed 

And the final wanted to implement their own management team with full funding.

@Abdul Shishi that was a misquote of net income, it should have stated gross.

Since then I have looked at facilities which are smaller and already designed for a daycare. 

Most recently we revamped our needs from a 24,000sq ft facility to a 4000 sq ft facility with a startup cost of $205K 

But still the same requirements local banks now willing to finance with 20% down

Most recently worked with a private investor for this amount went as far as signing a contract for debt financing @ 6.5%interest and then ominously the investor retracted...

So I'm at a lost, I've work with local startup incubators in the area, as well as personal loan officers to run my numbers to ensure I'm not over projecting...I've also had a current business owner look over my business plan to show me holes.. 

What I'm hearing redundantly is I have no major capital in the business which cause me to look very risky

I want to start off by saying any advice would be greatly appreciated!

Where to start; I have a very specific location in mind to start a daycare because the need is guaranteed business.

There is a current property for sale offering an exciting business and SFR in the listing: The current business is a warehouse I'd love to turn into a daycare with my own specs.

The problem: To purchase the property and renovate would be about $600K / to have a cushion myself for staffing a loan requirement would be about $700-$800K

Now I've meet with lenders whom would be willing to fund the entire amount with a down payment of 15% of the asking with is great but the starting capital of $150K I don't have.

A: Is it a good Idea to search for funding for the $150K to get the remaining funding?

B: Am I being to specific on the location/property? Could the home be used as cross collateral?

C: Is this a realistic goal? Now I did projection planning and the daycare would net annually at $650,000.00 per after the 1st full year with a modest number of children. 

Thanks