“Getting the Good Numbers when Buying a Business”
Good morning Joe,
I have attached the explanation letter you requested we write to present to the to the lender you have chosen. Unfortunately, we were unable to obtain any additional financial information from the previous owner of the sales territory that we purchased. The seller of the business was uncomfortable to share his personal tax returns. I had to rely on the company for the financial information, but investment was really worthwhile.
Besides the letter of explanation I have included the income and expense numbers directly from the franchisee, which I am assuming will give you the numbers you are looking for.
Let me know if you need anything else.
Buying a new business and needing to get a new mortgage for a home isn’t always easy, especially when you can’t get good numbers on the business, which is the case with my client.
A lender needs to have GOOD numbers when it comes to qualifying for a mortgage, but if we are diligent on collecting as much information about the business, including past history this can be done. The client has owned a similar franchise in the past, so the track record piece is a bit easier. There is always a way to make a transaction work!