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Normal down payment for a seller financed route purchase?


raquel

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I'm thinking about buying a route priced at $3,000. The owner claims the profit is $400/month, gross is $600/month. (I will confirm those numbers as part of my due diligence). I asked what he was looking for as a down payment, and he said $1,200 which I think is high. Anyone have suggestions for how much the down payment should be?

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Anything less than half-down is fair.

So, I don't think this seller is being unreasonable asking for $1200 on a $3k transaction.

As you do your research, if his $3k asking price drops remember that the down payment should drop accordingly, too.

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Ever consider paying him a commission and less money upfront. That way he wants you to suceed.

The commission you could equal out so that if his numbers are true he basically gets a monthly payment.

I like this idea.  Keep it to where he still has some skin to loose if the deal goes bad.  We aren't talking big numbers here so this approach won't have the teeth that it would on a $100k deal.

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