Two Related Investment Opportunities — SBA Acquisition of an Established $6.5M Revenue Business
Option A — Preferred Equity ($185,000–$310,000, depending on Option B)
I'm seeking an investor to provide preferred equity as part of the SBA equity injection requirement, at a 12% annual return — fixed return, liquidation preference, defined buyback in 1–3 years, no management role or personal guarantee. The business does $6.5M in revenue and cash flow covers the preferred return over 6x.
The amount needed depends on the real estate structure: $310,000 if the real estate stays part of the SBA-financed purchase, or $185,000 if the real estate is instead purchased separately by an outside investor (Option B, below).
Option B — Real Estate Purchase with Guaranteed Tenant
Separately, I'm seeking an investor to purchase the ~37,000 sq ft commercial property the business operates from, with the business signing a long-term lease as tenant at closing — guaranteeing occupancy from day one, and reducing the equity injection needed in Option A above.
The property is currently listed at $1,200,000. Our own due diligence — including a square footage discrepancy in the seller's materials and a comparison against the appraisal's own stated comparables — leads us to estimate the property's actual value closer to $900,000–$1,050,000.
At the listed price, the estimated $85,000/year rent represents a 7.1% cap rate. At our estimated corrected value, that same rent represents a cap rate of 8.1%–9.4%.
Contact
Email: davidabeatty99@gmail.com Phone: (330) 507-9568
I have a detailed term sheet ready to share with anyone who wants to learn more!
I'll also be at the Mahoning Valley REIA's picnic on July 13th to talk about it in person.