One of the ways I hope to supplement my income after my optometry practice is sold is to carry a portion of the sale as an owner finance. The buyer will put down 10% and pay off the balance over a ten year period. To some this may sound like a gigantic roll of the dice, but I am not much of a gambler, so why do I think this will work?
- This practice has been in existence since 1941. We live in a rural area, and while growth is inevitable, it is not likely that tons of new optometry office are going to open up. It would be unlikely to fold unless the new owner does something really stupid.
- The buyer has worked with me for the past two years. He knows what he is getting into and how business decisions have been made.
- I will still be there part time and, as per our agreement, will have access to financial records as long as I carry the loan. If things start going south, I will be able to help correct problems.
- If it does all go down the drain, I will take the busines back and start over again. While this goes against my goal of working less, I could do it if I had to.
This will be the last post for a while on this topic. While I wish I had known someone in a similar situation when I was setting all this up, I realize selling a business may not be very interesting for most people. New topic next time.
Have you ever carried a loan for someone? Did it work out?