Business Acquisitions
| Listing Information | |||
|---|---|---|---|
| Amount: | $25,000.00 | Status: | Loan created |
| Grade: | AA | DTI: | 14% |
| Lender Rate: | 10% | Borrower: | socalbuddy |
| Finished | State: | CA | |
| Funded: | 100% | Group: | (No Group) |
| Loan Information | |||||
|---|---|---|---|---|---|
| Loan Status: | Current | Origination Date: | 2007-03-29 | EricsCC ROI: | 7% |
| Status History | |
|---|---|
| Mar 29, 2007 | Current |
|
Hi, I am a 30 year old Computer Engineer, married to my wife for 4 years. We have a beautiful 1 month old baby boy. We are well educated, both have a Master's degree from reputed universities, and are trying to start a new chapter in our life by owning our own business. I am a full time employee at a telecommunications company earning more than $80,000 per year. DEBT TO INCOME RATION: 1% CREDIT GRADE: AA Reason for Loan: We are purchasing 2 after school tutoring franchises; both owned by the same person. These are well established businesses (over 5 years) with a very good cash flow. Per the last year income expense report: Total income for 2006 was: $260,000 Total expenses for 2006 were: $171,000 Profit: $89,000 The Purchase price, Franchise Fees, Lease security deposit and other misc. expenses for these 2 centers totals to $160,000. The loan I am seeking will be used towards purchase price, Lease security deposit and a working capital. Please note that we have already paid the Franchise and support fees for these 2 locations ($33,000). We have about $70,000 in our checking and savings account. We also own a rental property (duplex) in Texas that has about $45,000 in equity. We are hoping to get a $25,000 loan from prosper-ites which will be a big help towards purchasing these 2 businesses. Reason for not applying for SBA Loan: As many of you know the SBA loan process takes anywhere between 6 to 8 weeks. The existing owner wants to sell this business by 1st week of April which leaves us around 3 weeks (not enough time to get the SBA loan). Reason for not taking a cash out or line of credit: As I mentioned earlier, we have about $45,000 in equity in Texas property but due to state laws about home equity loan, it is very hard to get a cash out or line of credit on rental property in Texas. Also not many banks offer Home / Equity loan in Texas due to these strict laws. The monthly loan payment to Prosper.com will come from the profits generated by the new business. We are very responsible with our finances. I think the credit score will speak to that responsibility, but we will be happy to answer any further questions you might have about this business or my credit history. We appreciate your consideration to fund our loan with Prosper, and will make repayment a TOP PRIORITY. Thank you. |
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