Zero Down, Limitless Potential: Buying Businesses with Creative Financing with Roland Frasier [Ep.135]

<p><span style="font-weight: 400;">As a rule of thumb, larger businesses tend to be more established, more stable, and come with better infrastructure than smaller businesses. </span></p> <p><span style="font-weight: 400;">But they also cost more, creating a barrier to entry for entrepreneurs who are looking to make the most of the benefits of buying large businesses. </span></p> <p><span style="font-weight: 400;">However, Roland Frasier discovered that the barrier can be overcome with some clever, creative financing. </span></p> <p><span style="font-weight: 400;">Roland is a serial entrepreneur who is renowned for his unique approach to leveraged buyouts and no-money-down financing. In fact, he has created 226 creative financing strategies that buyers can use to purchase a business with little or no money down. </span></p> <p><span style="font-weight: 400;">In this episode, Roland joins us to discuss the various levers buyers can pull to reduce the amount of cash they need to put into their acquisitions. </span></p> <p><span style="font-weight: 400;">He starts off by breaking down the characteristics buyers should look for in a business, and the common mistakes that often trip buyers up. He then outlines a few of his no-money-down strategies, including seller financing, supplier financing, using the business’ credit card reserves, inventory consignment, asset-based lending, management financing, and many more. </span></p> <p><span style="font-weight: 400;">He also explains the importance of setting up an SPV to protect your personal assets and credit when structuring these deals.</span> Roland also reveals how to spot a good deal and the best way to approach negotiations. According to Roland,</p> <p><span style="font-weight: 400;"><br /></span><span style= "font-weight: 400;">“</span><em><span style="font-weight: 400;">The biggest thing people do wrong when negotiating is that they think of it as a win or lose. I like to think of it as a collaboration. We, the buyers, are collaborating to get you, the seller, th