You will find gimmick after gimmick online nowadays. The amount of false information out there is disgusting. One of the biggest snake oil gimmicks is to buy a business with no money down. Can it happen? Yes, it can. Then why is it a gimmick?
If I said it’s possible that it can happen, and yet I say it’s a gimmick.
That’s contradicting, yes? Kind of. You see, I, myself, might be able to pull a deal off using no money down tactics. Keep in mind, I have done countless deals. I have forgotten more about deal-making than most people will ever learn. I have a large presence online, I have written 3 books, and I have courses that teach people how to buy and sell businesses. I have a banking background, I am one of the best salespeople out there, I am a closer, I am also one of the best negotiators you will find. I also have countless businesses coming my way, inquiring about selling their business. I have a team around me that is second to none. I have attorneys on my team, I have counsel all around me. Could I do a no money down acquisition? It’s a maybe at best. I might be able to do one.
Now, how is Joe six-pack going to buy a business with no money down?
How does he have the relationships, knowledge, professionalism, and street smarts to pull that off? Where is he going to find this one unicorn in the market who is willing to finance the entire business, with assets given to the buyer, for a percentage of the business until it is paid off or when the buyer sells it? Where is he going to get the skills and experience to run this business while it pays off the debt to the seller? What if the economy shifts, is the seller going to have recourse? Why would a seller do this?