Trevcade

Freelance Food Critic. Aspiring billionaire.

[Trevcade @CadeStierwalt]

"All the Gods, all the Heavens, all the Hells, Are within you."

[Matthias Smith, CEO - Pioneer Capital Advisory LLC @SBA_Matthias]

The Partial Standby Seller’s note (a short thread) 🧵 👇

[SMB Attorney @SMB_Attorney]

"I'd love to buy a business, but how do I afford the 10% down payment?"

We often see buyers acquiring businesses with over $750,000 of earnings with $0 or very little of their own money.

This is accomplished by having investors cover their 10% equity injection required by the Small Business Administration (SBA) for a 7(a) loan.

Here are three recent examples*:
1. $8 million purchase price, with earnings of $3 million; the buyer contributed $0 and retained 70% ownership.

2. $3.5 million purchase price, with $800,000 in earnings; the buyer contributed $70,000 and kept 90% ownership.

3. $4.5 million purchase price, earning $1 million; the buyer contributed $50,000 and maintained 80% ownership.

[*I've made slight changes to enhance confidentiality while retaining the substance.]

The SBA typically requires a 10% equity injection, or down payment, for acquiring a business under the 7(a) program.

However, this can be reduced to 5% with seller financing under specific conditions.

Not every lender will approve deals where the buyer contributes no money, with the required payment supplied by investors.

Although allowed by the SBA, it depends on the lender's policies.

To increase your chances of getting a loan approval, it's beneficial to have good credit and relevant skills that instill confidence in the bank.

Down payment should not be standing between you and your dream of acquiring a business.

Disclaimer: This is not financial advice. Always consult qualified advisors before making financial or investment decisions. @SMB_Attorney is not your attorney and this is not provide legal advice. This information is being profitable for educational and informational purposes only.

[Matthias Smith, CEO - Pioneer Capital Advisory LLC @SBA_Matthias]

Here is a quick video for searchers explaining the partial standby seller’s note

If you have any specific questions, please feel welcome to drop a comment, send me an email to [email protected] or send me a DM

[Trevcade @CadeStierwalt]

It’s going down next week in Tampa! Don’t miss this incredible personal mastery masterclass. Check the link below https://t.co/Pmmpsdzz9Y

[StripMallGuy @realEstateTrent]

Being around successful people is the greatest motivator there is.

It’s inspiring, fires you up, and forces you to dream bigger.

Don’t avoid those rooms, seek them.

[Steve · Millionaire Habits @SteveOnSpeed]

If you're not focusing on these 10 things by the time you're 30, you won't become a millionaire.

1: Money.

"But there's more to life than money!!!"

F*ck that.

A little focus on money now means a rich retirement later. Your family will thank you.

[Michael Girdley @girdley]

Buying a business?

It can go VERY wrong.

And put you in the poor house.

I explain the 11 biggest traps for you to avoid when buying a business:

[Chris Hoffmann @STLChrisH]

We have a saying at Hoffmann Brothers.
We make decisions 100% fast and 70% right.

I learned to have a “bias for action” while serving as an officer in the Marine Corps where I frequently found myself in situations where we had to make decisions with incomplete information.

We couldn’t afford to wait for perfect information, the perfect decision, or the perfect plan.

We had to make things happen with the information available.

The bias for action came with me when I joined Hoffmann Brothers in 2016. It’s the pace at which we make decisions as a company.

This mentality does not mean that we are sloppy or reckless, and it doesn’t apply to everything.

When our field professionals show up to a customer’s home or business, they’re going to take as much time as needed to do the job 100% right.

100% fast and 70% right applies to strategic decisions that can get refined over time.

Being 70% right means we have confidence that we’re headed in the right direction for our organization. We can adjust course as necessary but likely won’t need to totally reverse course.

The bias toward action is how we ensure that our organization stays nimble and adaptable even as it continues to grow.

Does your team have a bias for action?

[Trevcade @CadeStierwalt]

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[Casey McDaniel - Pest Control Guy @pestctrlguy]

Don't live a life of unfulfilled if then statements.

What do I mean by this?

I have a friend that always says stuff like this:

If I would just invest $500 a month, then I would retire a millionaire.
If I would just go to the gym for 30 minutes every day, then I would lose so much weight.
If I would just write a few thoughts everyday, then I could write a book in a year.

And on and on and every year he sets new years goals, and every Christmas he has come up short stating again that if he would just make small changes, then his life would be different.

You can do whatever you want to do.

Your life will be what you make it.

Small actions can lead to great results.

Don't get to the end of your life and say if I had just started that business, then my life would have been more successful. If I had just carved out a few more moments with my kids, then life would have been more fulfilling.

Take action. Make small changes. Nobody is stopping you. I hope this is what you needed to hear today.

[Trevcade @CadeStierwalt]

@mhp_guy I’m interested in this concept as well. Excited to see your progress!

[Trevcade @CadeStierwalt]

Impactful wisdom here… https://t.co/55M1XKADvk

[Nick Huber @sweatystartup]

I learned how to operate a company by doing the things that didn't scale.

Entrepreneurs today aren't willing to do this. They want to start a company and get rich quick.

They want an app to get to #1 in the app store. They think about SCALE and their MOAT.

The truth is to run a successful company you need to know how to manage people. Deal with problems. And be resourceful.

Those things don't come naturally and you sure as heck don't learn them in school - so you have to be willing to put in the work on something small.

That is what I did.

We built a great little business that didn't scale by doing hard work that nobody else was willing to do.

And by 25 years old my partner and I had $500k in our checking account and a bunch of experience doing hard things.

Then we were able to build a self storage facility from the ground up, get in better businesses, and build real wealth.

[Trevcade @CadeStierwalt]

Transform your Business and Life!
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Be Bold- The Art of Intentional Action
Leadership Mastery- Craft A Legendary Organizational Culture.

Come Join the Legendary team in Tampa!
https://t.co/BUMA8lstWO

[Trevcade @CadeStierwalt]

@benkellyone Biz

[Trevcade @CadeStierwalt]

@SBA_Matthias Do you have any experience with clients using the ROBS process to use 401k funds as down payment?

[Matthias Smith, CEO - Pioneer Capital Advisory LLC @SBA_Matthias]

Some see starting a business as a risk

I see the greater risk being sitting back in your rocking chair at age 80 wishing you had tried but didn’t

[Trevcade @CadeStierwalt]

@shawnwallard Awesome story!

[Peter Mallouk @PeterMallouk]

Big money is made via compounding over the long run. Play the long game.

[Peter Mallouk @PeterMallouk]

The 3 Step Warren Buffet 5/25 rule:

1. Make a list of the 25 things you want to do with your life.

2. Narrow that list down to the top 5.

3. Never think about the other 20 again, or they will take time away from the 5 that are most important.

Want to succeed? Prioritize.