Young and Dumb (Hopeful Self Storage Buyer)

Hello! First time poster here and I have a few questions. I am managing a storage company and have learned the inner workings and all of the day to day troubles a storage company can face. I think I could run this place on my own and the owner is wanting to sell. He has had a few buyers back out and hasn't had any luck selling.

My questions are-

1. Being only 22 I have no capitol and thus don't have the 10% required for a secured commercial loan. I have been told to try a local Capitol Investing company. Does anyone have experience with this? I want to talk casually with them to be better prepared. Is a NPO Capitol investor a good and realistic option?

2. Determining the truest value of the company. The asking price is supposedly high, but I know the values of the construction and the cash flow statements. What is the best way to calculate what a good offer would be for the company.

3. Being so young I feel disadvantaged, how can I overcome this and convince someone to invest in me?

Any help would be appreciated!
 
without being to blunt if you have no capital then you are up the creek with out a paddle! You will probably need minimum 20% deposit for commercial deals and most likely 30% with the major lenders.
 
Longislandtea.... I agree with Joan in that you will need a decent deposit.

I also notice you are in the US, so the advice you get on an Australian forum may not be suitable for your locality.

Having said all that..... If you truly believe you can run this business...

Write a damn good business plan outling how you make the business work to pay yourself a wage as well as paying off the loan and raising some capital . If you can make a compelling plan, present it to the current owner and ask for vendor finance for 5 years. (after 5 years you would refinance with a regular bank and the vendor gets his money).

Some questions you need to ask yourself though....

You THINK you could rum the place on your own???? Think about this very carefully, what does the owner currently do now that you may not know about. Do you understand the intricacies of all the paperwork involved (taxes etc)

The owners has had buyers already back out...... Big danger signal here. WHY, WHY, WHY. Obviously something is being found out when potential buyers due their due diligence .
 
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