The fastest way to kill your deal

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⏱️ Read time: 4 minutes

🔍 Deals analyzed: 2 (1 win, 1 warning)

💣 Knowledge bombs: 3

"Where do I find sellers who'll finance 100%?"

That DM made me laugh. Not because it's dumb. I used to ask the same thing. Then I thought about my parents' laundromat deal from 2003. Full seller financing, both as they bought and sold. But trying that in 2025 and on any business worth its dime is…like trying to find gas for $1/gallon. Times have changed. Let me show you what actually works now.

THE REAL DEAL: A Tale of Two Laundromats

Back in 2003(?), my parents bought their laundromat with 100% seller financing. The seller was retiring, knew them from the community, and wanted to help them succeed. The numbers were real, the machines were well maintained, and years later, that business is still thriving under new ownership.

Here’s the kicker: that kind of deal is like finding a unicorn today…and maybe you shouldn’t even want that deal as a buyer. Why?

With SBA loans offering great terms, any solid laundromat can get bank financing. So when I see sellers pushing 100% financing now, red flags go up.

What’s probably underneath:

1. Inflated numbers + rushed verification = red flag "trust me bro"

2. "Forget" to mention a relative owns the real estate and is about to jack up rent on the buyer

3. Purchase agreement collateralizing buyer’s house and personal assets when rent goes up

Real Talk: My parents' deal worked because it was built on trust and transparency. Today's 100% seller financing usually means the business can't survive bank scrutiny and/or the seller is trying to HIDE SOMETHING…RUN.

DEAL DETECTIVE:

Why Asking for Full Seller Financing Kills Buyer Credibility

What Sellers and Brokers Actually Hear

• "I don't have any money"

• "I can't get bank approval"

• "I haven't done my homework on business buying

The Real Numbers Game

• Maybe 5% of sellers offer majority financing now

• SBA loans cover up to 90%

• Most sellers wait for a qualified buyer than risk their retirement

Why Bank Validation Matters

When you get an SBA loan, you're getting a free gut check. The bank combs through books, cash flow, and valuation. Why skip that safety net? Usually because something wouldn't pass the sniff test.

VALUE VAULT: Playing it Smart in Today's Market

Want to actually close a deal? Focus on these three things:

1. Lead with qualifications and financing ability. Show sellers you're serious by talking about the business first.

2. Use bank financing as your safety net. Their due diligence protects you. Plus, sellers respect buyers who come pre qualified.

3. Save seller financing asks for specific situations, like covering the gap between bank financing and purchase price.

Bottom line: Yes, my parents' 100% seller financed deal worked out great. But trying to replicate that exact scenario today is like trying to buy a house with no money down. The market has changed. Smart buyers adapt to the market.

Here's to protecting your downside,

kinza

p.s.  Got a friend chasing 100% seller financing deals? Do them a solid and forward this. Their broker will thank you.

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