Several years ago, as the “economic crash” was really rolling along, a soon-to-be former Realtor (Let’s call him Octavio) wanted to buy a franchise opportunity being sold by the original franchisee/small business owner, and Octavio needed $100,000 to buy out this original owner. No bank would touch the deal, not even with a Small Business Administration guarantee, as the business was not doing well and its tax returns for several years looked rather sad.
Even with home values heading south faster than the Titanic, he still had a goodly amount of equity in his home. Yours truly here arranged a $100,000 private-party loan with a wealthy retiree, payable interest only at 10 percent per annum, all due and payable in two years, collateralized by a second mortgage on Octavio’s home.
This all happened in 2009, the franchise was purchased, and Octavio is still in business to this day, doing quite well, and has since refinanced the $100,000 with a bank.
Had Octavio not known about me, he would have lost the opportunity to take a new direction in life.
Sad to say, so many small-business funding opportunities are lost because these owners just flat out don’t know the opportunities exist.