60-80% Cash Deal Structure

Ramon shares a strategy for buying and financing online businesses using a combination of SBA loans and seller financing, making it possible to acquire profitable businesses with minimal upfront capital.

Key Structure:

• SBA Loan Approach:

  • Put down 10% of purchase price
  • Borrow up to 90% through SBA loan
  • Interest rates between 5-7%
  • 10-year loan terms

• Deal Structure Example ($400k Business):

  • $40k down payment (10%)
  • $360k SBA loan
  • Monthly loan payment ~$4k
  • Monthly profit $20k
  • Net monthly cash flow $16k after loan payment

• Seller Financing Strategy:

  • Pay 60-80% cash at closing
  • Remaining balance paid over 12 months interest-free
  • Structure as seller's note or earn-out
  • Keeps seller invested in transition success

• Benefits:

  • Lower upfront capital requirement
  • Quick return on investment (ROI in 2.5 months on example deal)
  • Seller stays motivated to help with transition
  • SBA looks primarily at business fundamentals vs personal assets
  • Lower interest rates than traditional business loans

This structure allows buyers to acquire profitable online businesses with relatively small amounts of capital while maintaining healthy monthly cash flow.