SOP #47 — Seller Financing Anchor That Cut Cash Outlay 40%

SOP #47 — Seller Financing Anchor That Cut Cash Outlay 40%

Directory site, $250k ask, all-cash demand. We restructured the offer. Procedure:

1. Open with price acceptance, then move the terms — agree to $250k but propose structure.
2. Offer 60% cash at close, 40% seller note over 18 months at 7%.
3. Tie note payments to a performance floor — note balance reduces if revenue drops below 85% of trailing average.
4. Frame it as alignment: 'If the numbers are real, you carry no risk.'

Outcome: seller accepted 65/35. We deployed $162k instead of $250k upfront, kept $88k working capital for growth. The performance clause meant we paid full price only because revenue held. Cash-on-cash return in year one jumped from 22% to 38%.

Save this — run it every deal.