Broker Taking Full Price Offers Only

February 06, 2025

by a searcher from New York University in Cranford, NJ, USA

Looking at a deal that I am really interested in, but it is priced higher than any banks I am speaking to are saying they will finance. The broker was transparent that they are taking full price offers only, but this feels not realistic based on bank feedback. We are supposed to meet the Sellers on Monday. Is there a reason to keep this meeting or is this a dead in the water deal?

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Reply by a lender
from University of Southern California in Los Angeles, CA, USA

Take the meeting and submit your best LOI—let the chips fall where they may. Is this purely a DSCR issue? Many banks are more aggressive with DCR. The SBA SOP allows a 1.15 DSCR, but even the most aggressive SBA lenders typically require at least 1.25 in one time period. It’s possible you’re undercapitalized compared to your competition, or they might be funding deals in cash without SBA loans. It could be worth exploring more aggressive lenders to see if there’s a better fit for you. I’d love to help with your SBA loan. We work with all major SBA lenders, and for the right deal, we can secure excellent rates. The bank pays us after your loan closes, so our service is 100% free for you. You can reach me here or directly at redacted Feel free to schedule a meeting with me here: https://cal.com/ishan-jetley-3d73m8/30min. Looking forward to chatting!

Reply by a professional
in New York, NY, USA

I'm not sure if I understand what your asking about here.
Are you leaning on the bank to provide you funding for the deal and or also gauging the amount of leverage they're willing to offer to determine the overall business valuation ?
Do you have your own valuation figures? What did the dd show? Are the Financials certified ?
What's the WC and oc for this business? Are you including this in your purchase price with the bank or left them out ?
How much do you believe in this business and would like to close? If it's important to you i would be glad to work with you.

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