|Posted by Peter Karami on January 4, 2017 at 1:05 AM|
If you've been following my advertising posts on social media, you probably already know that I have listed a Nursing home business for sale in Washington. Al though the business is a profitable business with appx 20% ROI ( Return on Investment), I found it very challenging to find a pre-qualified buyer for several reasons: I have received many calls from prospect buyers and in some occasions seller has agreed to allow prospect buyers view interior of the property. However, the first and foremost issue for all buyers is financing this business. It is clearly not difficult to finance a profitable business for most buyers with several available business loans offered by many banks, especially the SBA loans which usually it does allow buyers with reliable qualifications purchase a business with as low as 10% down-payment. This is not the case here when it comes to buying a nursing home in Washington under the category of an Adult Family Home. Basically, this type of business are established in a residential zoned property and in a single family houses. As you may know, obtaining a loan for a single family home is defined under certain guidelines that is fairly simple and available to folks that are buying a house just to live in it. However, when the house is being used for a business purpose and that is a residence and care for the elderly, the scenario is completely different. It seems, banks don't know whether to finance the property under single family home guidelines or take the business side of the scenario and finance the house as a commercial property. Therefore, it has become a dilemma for me that whether it is possible to find a lender that is willing to finance this type of business which includes residential property or that is simply impossible and this type of business can be only purchased by cash?!