With 600k in inventory. 2 locations, already established. each site has a manager, and there’s a GM in place. 9 employees total.

all-in cost is 2.8m with inventory…

This is just the business (no property included).

This is around a 28% ROI… Or they’re selling at a 3.5x multiple.

And if I get an SBA loan, then the returns are dramatically higher…

Coming from a real-estate background where CRE is sold at a 6% Cap, or a 8% Cap… Am I missing something? These returns are insane — especially if there’s management in place. Please shit on my dreams and enlighten me in regards to what I’m missing here using numbers and examples. Thanks

EDIT: so I don’t have to reply to everyone individually — I’m waiting for the full OM to be sent to me – this is was just the listing/offer. So I don’t have the exact numbers, tax returns or any of the solid numbers like expenses, payroll, etc.

Also, I’m assuming a good chunk of this income is gonna be “cash” – so idk how to verify this or handle this when I’m doing my underwriting/analysis.

I’ll make another post later once I have more detailed numbers lol. But this is just a preliminary post to get a general understanding.