Business for sale?

[Guv10]

Hi,

I've just seen a property business for sale. 1.2 million. Consists of 4 rental properties. Return of 9000 a month.

If I was to go to the bank and ask for a business loan to be used as a deposit for the houses what are the chances of them giving it to me?

I'm expecting to get plenty of sarcastic answers.

basically I've gone through it in my head and I'm 99% sure that they would say no. I just wanted others opinions

Cheers

[Stephanie Plum]

What percentage are you proposing? Because your post reads like nothing? If that's the case you'll be laughed out if the door. Hopefully I read it wrong.....

[keith333]

You'd have to put some equity in and I'd have thought that would be between 25-40% of the £1.2 million and a bank would lend the rest.

There is no chance of a bank lending you the money for the 25-40% deposit and getting a mortgage on the balance if that's what you're asking.

[griffgrog]

The numbers don't stack up. That's a 9% return on property. No bank manager is going to believe that. I would suggest that the value of the business is a discounted amount of the total value of the underlying assets. Can you value the buildings?
And if what you are proposing is ' Can I borrow the deposit' I would suggest that without substantial collateral then you probably already know the answer.

[Guv10]

griffgrog said:

The numbers don't stack up. That's a 9% return on property. No bank manager is going to believe that. I would suggest that the value of the business is a discounted amount of the total value of the underlying assets. Can you value the buildings?
And if what you are proposing is ' Can I borrow the deposit' I would suggest that without substantial collateral then you probably already know the answer.

They are student rentals which are in very high demand so the numbers are correct but yes I kinda knew that without putting anything in myself they wouldn't lend the deposit