1st Time Commercial Real Estate Purchaser - Purchasing Property &amp; Current Business - SBA Funding - Any Help is Appreciated!!!
Hello! I am looking at purchasing a property that has been on the market for some time now. It is a Commercial property with 2 units. The Bottom unit is a restaurant business which I would be also purchasing. The Top unit is a rental apartment. 51% Owner occupied. I am 30 years old - 150k a year job - 120k open credit lines - No current real estate on my portfolio.

I've done everything up to this point that needs to be done other than financing &amp; coming to an agreement on the property. I've been working with my bank and have gotten to the point where all is needed is Tax Returns from the business owner. However I have not received those and does not look like I am getting those until a deal is done. I have read that until you actually have an agreement, then you won't be able to get pre-approved like a residential purchase. My Bank only needs the tax returns. (Already Completed my Business Plan and 3 year projection of increases) My lender is direct with SBA and would be looking at utilizing an SBA loan and getting working capital as well. Looking at 10% down options.

My gut feeling wants to go for it and get to the next level. What would you guys recommend I do? Make an offer and attempt to purchase? What would be the downfall if it doesn't work out with financing? Any opinions would be appreciated! 

Thank you!
[{"id": "j04u5c0", "text": "So you are buying a restaurant? What are the profit numbers? How much NOI on the real estate? What is the purchase price?\n\nDo you know anything about the restaurant industry?", "replies": [{"id": "j04vx46", "text": "Hi Diego.\n\nYes I would like to purchase the property which includes the restaurant and upstairs rental. I have an LLC set-up with 10k line of credit just in the business name. \n\nI grew up working in the restaurant industry &amp; have been around it most of my life. My Sisters husband also owns a restaurant so has the expertise for vender/supplier relations. I was a Retail Store District Manager for multiple stores previously specializing in health and fitness. Managing staff, Merchandising, marketing, &amp; customer service is my expertise. \n\nIt is A restaurant which also specializes mostly in ice cream as well. I will be adding coffee/organic healthy smoothies to the mix. The purchase price of the property with existing equipment is 329K - the NOI last year was 78k. The business was only open for less than 4 months last year being only a seasonal business in 22. Owner is ready to retire due to multiple business endeavor's currently &amp; does not want to stay open that long throughout the year. I would of course stay open year round with new items on menu for everyday health. Not much competition in area around a 20 minute radius -", "replies": [], "depth": 2}], "depth": 1}, {"id": "j04xqey", "text": "Are you planning on occupying the apartment?\n\nHow much extra are you paying for the business?\n\nWhat is the real estate worth by itself?", "replies": [{"id": "j04yn7y", "text": "Real estate worth 215k - Business with all equipment - 114k - half an acre property  with parking lot. Yes will live in apartment.", "replies": [{"id": "j056j3c", "text": "How old is the building?", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "j056g57", "text": "I really like your ambition and it seems like you have done a good amount of due diligence already. It does seem like a tricky buy with a lot going on for a first purchase of RE. Something seems a little odd to me with the purchase price of $329k and NOI over 4 months of $78K. \n\nAre you in it for the restaurant business or would you like to rent the building to a tenant in the future? Running a successful restaurant is a different kind of animal and will take up a lot of your time.", "replies": [{"id": "j057dze", "text": "Thanks for your awesome words. I\u2019m In it for the Business aspect. Plan on growing my business portfolio and of course making a great place for the community to visit. Building is 60 years old. However metal roof is helpful \ud83d\udc4d\ud83c\udffb. Everything is pretty much up and running. Apartment upstairs needs major upgrades as far as carpet, kitchen and bathroom. Reminds me of an 80s studio. Lol. But I can deal for the time being. I understand the importance of time. Will transition from my everyday job accordingly in due time. Probably quicker than later but I do have a great supporting cast to help. Passionate about building my own business. The NOI was based off 8 months starting 1/1/22 backed by current owners accountant.", "replies": [], "depth": 2}], "depth": 1}, {"id": "j05eleq", "text": "Seller probably won\u2019t like this, or may not allow it, but I\u2019d get an appraisal on all the restaurant equipment.  2nd gen fixtures tend to be overvalued in a sale - asking way more than their replacement costs.  That 114k could be inflated.  \n\nIf it\u2019s \u201cice cream\u201d mainly, does that mean it doesn\u2019t have a grease trap or venthood?.", "replies": [], "depth": 1}, {"id": "j05eych", "text": "I think you should control your emotions and lease a restaurant first until you get more experience in the business and a track record, otherwise you could be saddling yourself with overhead, debt and no history of revenue generation to offset those two things.  Ambition is good.  Planning is good.  Patience and actual experience is better.", "replies": [], "depth": 1}, {"id": "j05f0rk", "text": "Does have vent hood already. Serves food as well. Owner currently has grease trap company come and clean however me taking over would mean new ownership which would mean having to have grease traps installed according to the county/township from inspections.", "replies": [{"id": "j06a2xj", "text": "When you say you won't get tax returns until the deal is \"done\" does that mean that you'll have agreed on a price and you'll be committed to it?  It's kinda out of the ordinary to expect that you will pay a price without you knowing for real what the numbers for the business are.\n\nIt would be totally common for you to get bank statements.  Do you think the seller would do that?  Assuming he has a separate account just for the restaurant business?  Or you could see if they'd be comfortable giving them directly to your banker and the banker can look them over.\n\nAnyway i read all your comments in the thread.  Sounds like you're prepared for this.  Try to make your offer contingent on inspection of the building.  Those older spaces can sometimes need major deferred maintenance taken care of.  I overpaid for a property when i was your age and it takes a long time to get back ahead.\n\nGood luck!  Stoked for you.", "replies": [{"id": "j06znei", "text": "My real estate agent has said they will not give any tax returns to me until we make an offer on the property. I am trying to get an pre approval from my bank on the purchase. I basically am at the point of a stand still being I do not have tax returns for the current business. Of course I can put an offer in and negotiate the property down which of course I am planning on doing: however I want to make sure I am good for it before. Don\u2019t see I would have an issue but being I am not purchasing with all cash offer: But still it\u2019s a weird spot to be in. Lol Thanks for your support!", "replies": [{"id": "j09k66o", "text": "Kind of makes sense then.  They maybe want a letter of intent or offer and a signed non disclosure agreement and then they'll give you more documentation.  Good luck with it!", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "j1b1v61", "text": "I understand you may be in the process with your current bank, but I\u2019m a commercial lender and my colleague is a good national SBA lender for a company who has a promo rate. I can make an introduction if you\u2019re interested.", "replies": [], "depth": 1}]