A 10-year loan lets you buy a property-management company with zero cash down. It covers the full acquisition price, closing costs, and working capital for the transition, with no balloon payment or prepayment penalties. Most buyers pay it off in three to five years.
For a business acquisition and property management, it is a 10-year loan term. So there's no commercial real estate that you're buying. It's just the straight book of business. And that 10 years is fully amortized. So there are no balloon payments and there are no prepayment penalties tied to that. So, you know, you have the flexibility to expand it over 10 years, but in your head you're saying, I'm really going to pay this off in 3 or 5 years. That's great. You have the capability to do that. Also, if you've got an existing property management company and you're buying and a second, third, or fourth, you could qualify for 100% financing to where you don't have to put cash down. Of course, it's always great to put a little bit of cash down, but not required in that instance.
This, this blows me away every time I hear it. So if you already own a management company and you're buying another one, potentially you could get it up to 100% financed.
Yes. That includes—
amazing—
all of the closing costs attached. 100% of the acquisition and any working capital that you maybe want built in just for like a 30-day transition period, all financed over that 10-year period.
