Should you buy a business with no money down?

31 Aug 2023 · 1 min

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This content was created by Eric Siu. This content was uploaded by Eric Siu. This is a YouTube video titled "Should you buy a business with no money down?" (uploaded 2023-08-31). The excerpt is a single-speaker spoken segment (labelled SPEAKER A) arguing that while it's possible to acquire a business for $0 down, buyers often lack the operational skills to run it and may face significant liabilities from seller or creative financing. The speaker warns that closing a deal is not the same as being able to operate the business profitably.

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the idea of buying a business for no money down that makes $500,000 a year, which is absolutely possible. You totally can do that. But the thing that they miss is that I can buy a business for $0 down that makes $500,000 or $1 million a year and know how to run it. If you've never run a business, and even if you do somehow magically pull off that deal, you're still screwed because you have no idea how to run a business. And so it's like you still lack the skills even though you can close the sale. Like I could sell that I could build a skyscraper. And if I somehow managed to BS my way through the negotiations and close the contract, I still have to build a skyscraper. And if you've never built a building Before we're even a house, very tough. And the likelihood that you then lose your ass— you'll get the business that does $1 million in profit per year for $0 down, but not for $0. And that's the piece that I think a lot of people miss. It's like, it's not free. Like, you have a liability or you have a debt if you use some sort of seller financing, creative financing, whatever. It's like, but now you owe this person.