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I have worked as GM for a family owned Family Entertainment Center in Texas for the last 15 years. Due to COVID the owners have decided to close the doors for good and put it up for sale. They turned down PPP loans they were approved for and have certainly earned the right to retire but there were still 60+ jobs that will disappear. Obviously, I am interested in purchasing the business. However, the owners are unwilling to owner finance in any situation because they would have to come back if the business went under.

They admitted that it would probably be a year before they would be able to sell the business due to the economy so I had a thought that I could purchase the business with all of the equipment of the business (Rides, Arcade Games, Laser Tag, etc). When he is able to to finally sell the land (Owner says it is worth 5.4 million, but listed it at 3.5 for a "quick sale") I could already have a new location to move the business. I said that I would be willing to pay him 10,000 per month for leasing the land which would cover the 5k in property taxes, and another 5k which is a little more than the salary they took home was.

Can anyone explain to me why he would not be willing to make it work. I am not a real estate guru so I have one more question. Is it possible to find someone that is willing to purchase the land and I purchase the business and lease it from them as I would be able to get a loan for the business only but not the land with it? Does anyone know  where I should be looking to find an investor?

I want to keep the business going as it has been a staple of the community for 40 years and keep the staff employed as well. Thanks in advance for any input you may have.
[{"id": "frwgg8e", "text": "Have you seen the operating books? Sounds like he is valuing the property without the business as a going concern. Or could be he just wants out. Might be an SBA 504 loan. Talk to a bank.", "replies": [{"id": "frxuf08", "text": "I like KCguy answer.  Get as much detail as you can on current income and expenses and then talk to a bank.  Could be ideal for SBA loan.", "replies": [], "depth": 2}], "depth": 1}, {"id": "frwgxzi", "text": "You might be able to find someone who would buy the business and lease it to you?\n\nIf you're offering $10,000 for the land, and it is worth $3.5mm, that is a really terrible return.  A fair offer would be in the neighborhood of $30,000 per month.\n\nWhere are you able to find a loan for the business, but not the land?  A secured loan for the land would have stronger collateral?", "replies": [], "depth": 1}, {"id": "frwi9ap", "text": "Investor here... maybe he just wants out. You could go over the tax benefits of owner financing with him again... save a ton of money by not taking a 3.5M or whatever 'pay day' in a single tax year. The real winner for owner financing might be, 'I will pay you the price you want, 5.4M, over 30 yrs' so you don't have to take such a big haircut. Find out what is the motivation behind the number, and see what you can do to satisfy. Whatever happens, someone will need to continue to operate the property... if its run well and has good numbers, you could essentially become the property manager by working with the new owner. Alternatively, you could partner with a syndicator and form an LLC where you're a general partner/operator and the syndicator handles the money raise and is compensated for it. My advice seems like there are more than a few possibilities you could get screwed over though, so do research. You could raise the money yourself, but look into the right ways to do that. For valuation, I'd look for the true cap rate of the business and research similar sales to get a true value and what a reasonable earnings multiple would be. Whatever you do, I'd come up with a value-add strategy to both diversify risk and improve incomes, which will speak well to potential investors.", "replies": [], "depth": 1}, {"id": "frxwo2d", "text": "Can you setup master lease with option to purchase for x amount the owners can be comfortable with? I agree with other comments of p&amp;l and valuing the business. You can contact Balboa lending or firestone capital that lend in this space.", "replies": [], "depth": 1}, {"id": "fry7600", "text": "I can see where an older person in their position would not want to do seller financing or any kind of lease.  there will still be an underlying stress and worry similar to what they've had in their business over the years.  If you have really valuable real estate, it gets to the point where operating a business like that is worth the stress and hassle.\n\nI can also understand you not wanting to leave this business, part of your life for 15 years behind.  However, speaking as the wife of someone who has successfully run different businesses over the years, it may not be wise to have such a labor and capital intensive business as the first business you own.  It's a different experience being a senior employee and being an owner of a business.  I see this type business as not very flexible and adaptable.  Maybe there's another way to apply your knowledge experience and connections in another angle of this overall industry.", "replies": [], "depth": 1}]