Dynadot

question I need financing for $50,000 deal. Options? Time sensitive.

Spaceship Spaceship
Watch

WhoaDomain.com

WhoaDomain.comTop Member
Impact
10,820
Hello,
I have a deal for $50,000 for a domain.

The buyer has $25,000 cash but needs to finance the rest $25,000.

We tried @Lendvo Domain Financing and they seem to be dragging their heels and now I contacted them @domaincapital

Does anyone know some other options? thanks in advance.
 
4
•••
The views expressed on this page by users and staff are their own, not those of NamePros.
I agree with Maple and some others.

Take the 25k, set up an installment plan with dan or escrow... taht's the best outcome here.

yea my account is restricted so my post before yours explains it all. You’ll see it in a minute.
 
1
•••
You need financing, like you want full payment ($50K) from the buyer now, but they need financing for the other $25K?

It is probably going to be rough to get that for a domain unless it is an amazing high quality domain with obvious resale value exceeding that.

Another option is you can just setup a domain holding agreement with Escrow.com. Take the $25K now and take scheduled payments over time for the rest.

https://www.escrow.com/domain-name-holding

Brad

thanks. The domain is a “call to action”. are there companies willing to give out loans if the domain is high quality? It’s a two word domain name.

how would that work? Who gets the domain ? The buyer who took out the loan? Or the lender?
 
1
•••
OP hasn't replied but I'm guessing that he's not looking for an Escrow service. I think he has an offer of $50k with a downpayment of $25k and he wants all cash up front so he (the seller) is trying to find a financing solution for the buyer. So, maybe he wants it as:
- Seller receives $25k downpayment
- MoneyGuy sends seller $20k (a discount off the $25k)
- Buyer signs a $25k IOU to the MoneyGuy
- The domain is held in escrow for while the Buyer sends payments to the MoneyGuy
- if Buyer defaults, then the Escrow service releases the domain to MoneyGuy

Great deal for MoneyGuy (if the Buyer defaults, he gets a domain that "sold" for $50k for $20k or less.
Good deal for MoneyGuy if the Buyer doesn't default, he receives $25k on an advance of $20k.

Obviously the details of the discount, and the time period, are ultra-important.

@WhoaDomain.com is that pretty much what you are looking for?

actually originally the buyer was going to setup payments with the lender to give $25,000 collateral and finance the entire $50,000 plus he shoulders the interest.

He’s in real estate and I did not even make this suggestion to him. Kinda came up with it himself on his own. Don’t ask me why but I’m cool with it.


So if anyone wants to do this financing just let me know the interest in the money over time because he’s a nice guy and I want to help him out here.

So recap $50,000 loan with $25,000 cash down. Who wants it?

I walk away free and clear.

for anyone wondering why any buyer would do this. The comps I gave buyer showed I should have asked $100,000+ for the domain so $50,000 was a steel. Plus the lowest priced domain sale below $100,000 for the same keyword was around $50,000 but honestly? I could have asked $150,000 if I really wanted to.

Plus buyer registered the Twitter, Facebook, and Instagram handle. So there’s that also.

so here’s a domain he needed to have to complete the branding at a steal of a price so yea he’s ok with paying the interest over time.

and........ I’m talking too much again. Anyone want to get this loan on lock? Pm me. Thanks.
 
1
•••
hmm.. seriously would u wire 25k to someone new for domain cause he sends u a bill?

I think with great escrow options like epik or dan... but not escrow.com... its insanity to wire cash to some dude with a bill.

I would if it was a well known domainer who sends me a contract that we both approve of.

I guess the bigger question here is why can’t Whoa just accept 25 down rest on installments.
 
4
•••
I would if it was a well known domainer who sends me a contract that we both approve of.

I guess the bigger question here is why can’t Whoa just accept 25 down rest on installments.

yea I know
I'd do it with known np member too etc ... but that's not what others or i was talking about.

as for this deal I too would eacrow the 25k then rest In instalments

i think epik would be best here due to Robs extreme flexibility.

well good luck to seller..not
sure of roi range but 50k to us average domainers is a dream deal..
 
Last edited:
3
•••
I would if it was a well known domainer who sends me a contract that we both approve of.

I guess the bigger question here is why can’t Whoa just accept 25 down rest on installments.


I could and offered this option. Already. Why is it everyone’s immediate thought is that I did not give buyer this option?

why not one even thinks perhaps the buyer for whatever reason wants to buy the domain outright in cash or $25k cash and the rest financed?

this is what buyer wanted to do. He chose to go this route but again @Lendvo Domain Financing was taking to long to get back to him.

I’m thinking the buyer doesn’t like the idea of me having full control of the domain once payment or payments are still being made.

I think he wants to pay and get the domain in his control. Done and done.

he actually did the homework on the financing part as he said he Googled “ domain name financing or loans”.

would have been perfect had @Lendvo Domain Financing maintained contact instead of leaving the buyer in limbo.

Only found out today about this issue. So came here to ask for other options.

I already offered the $25k cash and payment plan. but buyer seems to want the @Lendvo Domain Financing option. He really wants to walk away from this with the domain in his hands to do with what he wants.

he’s still waiting for @Lendvo Domain Financing and now I’m waiting on @domaincapital hopefully someone will get back to us with a solution quick.
 
1
•••
With 25k down a self finance is a no brainer because the contract can state with 3 default payments the purchaser will lose the domain and as the seller I just made 25k and got my domain back.

Best case scenario, everything gets paid and we are all happy.

Now @alcy and I will disagree here because I assure you I would close this deal. I would show the purchaser my track record. When my company was formed. Show him references from previous sales and give him a contract with assurances.

Half down puts all the cards in the sellers corner and unless the other 25k was needed immediately to live on I would not pursue a finance, I would do it in house.
 
3
•••
3
•••
With 25k down a self finance is a no brainer because the contract can state with 3 default payments the purchaser will lose the domain and as the seller I just made 25k and got my domain back.

Best case scenario, everything gets paid and we are all happy.

Now @alcy and I will disagree here because I assure you I would close this deal. I would show the purchaser my track record. When my company was formed. Show him references from previous sales and give him a contract with assurances.

Half down puts all the cards in the sellers corner and unless the other 25k was needed immediately to live on I would not pursue a finance, I would do it in house.

ok but am I missing something or why would u prefer to do this huge amount of work u just listed ..vs just a quick epik or dan payments and escrow setup?
 
1
•••
ok but am I missing something or why would u prefer to do this huge amount of work u just listed ..vs just a quick epik or dan payments and escrow setup?

Because I would want to keep the domain if the purchaser defaults in the loan. I kinda like to be in charge of my business from A-Z and with my proposal there is absolutely no negative. No commissions, no finance charges nothing. I would either get my money or get half and my domain back.

Hell if the person defaulted it would be 25k plus whatever payments he made until default at as complete profit.

Did I mention I love profit?

No right or wrong here, I am just stating what I would do in the OP's shoes.
 
3
•••
Trying to convince a buyer of both your requested purchase price and that you should be trusted to collect his payments directly and to hand over the domain to him months if not years on down the line is not the way to go unless perhaps you’re some major known domain seller and even then all that matters is if you’re already known to the buyer specifically not the domain world. Spending extra effort trying to convince the buyer that you’re to be trusted with his payments could blow the deal.

Just turn the deal over to escrow.com domain holding service. The very name escrow dot com reeks of respectability and will put the buyer at ease. All domain holding services return the domain to you if the buyer defaults - that’s what domain holding service is.

I just completed an approximately two year domain holding sale via escrow dot com for high five figures. Buyer paid all fees which were the lowest in the business for this type of transaction.
 
Last edited:
7
•••
So the question as I understand it is not how to do a payment system (many options for that, including private arrangements, Epik, Escrow and others) but rather you want $50k secured, he/she has $25k, you are looking for someone to provide a loan with the domain as security for the other $25k, along with a repayment plan.

The variation in even professional appraisals make it difficult for traditional lenders to enter the domain loan market I think.

You may need to end up as the loaner yourself, if willing, taking the $25k now and a repayment plan on the rest with terms to protect both of your interests, probably drawn up by a lawyer with domain expertise.

I really hope somehow the deal works out.

Bob
 
5
•••
Seller needs to be careful lest he ruins yet another potential sale.

LOL. True. Don't blow this one.

You get $50K now, buyer gets someone to loan $25K on a domain is unlikely.

Take the $25K via an escrow service, use the escrow service for the buyer to make payments on the rest.

I have done "self finance" deals in the past without escrow and it is rarely worth the hassle. Just have an escrow service handle it.

Brad
 
Last edited:
4
•••
@WhoaDomain.com I'm curious...

Would the domain in question sell for $25,000 on namePros in a reasonable amount of time?

Because if not, why would a lending company assume a $25,000 risk, on something that doesn't measure its own weight in wholesale value? -- Unless the buyer put something up worth at least $25k as collateral (other than the domain), and/or signed/assumed it as a personal/corporate liability.

I think what others had suggested, about you taking a down payment and setting up a payment plan, might be the easiest option here.

Best of luck!
 
Last edited:
10
•••
To endeavor to secure financing from a third party, for the client on the other side of the table is a head scratcher.

Good potential for a red flag of impulsiveness to trigger flight instincts.
 
4
•••
So if anyone wants to do this financing just let me know the interest in the money over time because he’s a nice guy and I want to help him out here.

So recap $50,000 loan with $25,000 cash down. Who wants it?

I walk away free and clear.

for anyone wondering why any buyer would do this. The comps I gave buyer showed I should have asked $100,000+ for the domain so $50,000 was a steel. Plus the lowest priced domain sale below $100,000 for the same keyword was around $50,000 but honestly? I could have asked $150,000 if I really wanted to.

Plus buyer registered the Twitter, Facebook, and Instagram handle. So there’s that also.

so here’s a domain he needed to have to complete the branding at a steal of a price so yea he’s ok with paying the interest over time.

and........ I’m talking too much again. Anyone want to get this loan on lock? Pm me. Thanks.

There is a big difference between theoretical pie in the sky value and actual resale vale.

If the buyer was able to get Twitter, Facebook, and Instagram handles I am skeptical about the resale value of this domain.

On a loan all that matters is collateral honestly. Unless the domain would easily sell for $25K+ reseller, there is no reason to shoulder the risk.

Just take the $25K. Have the buyer make payments to an escrow company.
It is a relatively simple solution.

I have noticed from past threads that you seem to often get in your own way when it comes to completing deals.

Brad
 
Last edited:
9
•••
I could and offered this option. Already. Why is it everyone’s immediate thought is that I did not give buyer this option?

why not one even thinks perhaps the buyer for whatever reason wants to buy the domain outright in cash or $25k cash and the rest financed?

this is what buyer wanted to do. He chose to go this route but again @Lendvo Domain Financing was taking to long to get back to him.

I’m thinking the buyer doesn’t like the idea of me having full control of the domain once payment or payments are still being made.

I think he wants to pay and get the domain in his control. Done and done.

he actually did the homework on the financing part as he said he Googled “ domain name financing or loans”.

would have been perfect had @Lendvo Domain Financing maintained contact instead of leaving the buyer in limbo.

Only found out today about this issue. So came here to ask for other options.

I already offered the $25k cash and payment plan. but buyer seems to want the @Lendvo Domain Financing option. He really wants to walk away from this with the domain in his hands to do with what he wants.

he’s still waiting for @Lendvo Domain Financing and now I’m waiting on @domaincapital hopefully someone will get back to us with a solution quick.
So instead it being held with Escrow, Dan or Epik it will be held by Lendvo?

From their site....

"Does lendvo have to hold the domain while the financing is active?"

"Generally yes. While we usually hold the collateral in our own 2-step enabled registry accounts during the financing we allow some customer to utilize Escrow.com’s 3rd party domain name holding product. If a customer wishes to use this service they will be responsible for any and all associated fees for this service."

Whats the difference? Or am I missing something?
 
Last edited:
4
•••
The answer was already given a few times early in the thread (bmugford already gave the answer in the 4th post).

All you have to do is use an escrow/marketplace service that facilitates spread-out payments:

Escrow.com
Epik.com
DAN.com
NameSilo.com

Each of those companies have various options/formats for spread-out payments, and you and the buyer can decide which one you want to use.

The escrow company holds the domain while the payments are being made, but the buyer can manage the domain's settings.

After the buyer finishes paying, the domain goes to them. Or if the buyer stops paying, the domain is returned to you.


You mention that the domain is a hand-reg and will be the highest ever sale for the keyword, so my guess is that the buyer is probably overpaying at $50k. I think $25k was an overpay for CoinMENA.com, but congrats on getting it! :)

But so if the "liquidation value" of the domain is say only $5k or $10k, I doubt a lender will want to finance it... it's basically like asking them to be a co-buyer of the domain, and then let the other buyer pay them back. It's great for you, because you get all the money upfront, but the domain's liquidation value is probably too low for any lender to want to be a "co-buyer".

---

Also, regarding the discussion of keeping a domain and letting a buyer pay the seller gradually:

That's fine if the seller is an established company with various people on staff. But a problem for a buyer if the seller is just 1 person (selling on their own) is that if they somehow unfortunately die suddenly, it could be difficult (or at least a hassle) for the sale to continue so the buyer can get the domain... especially if the seller didn't tell their family about the arrangement, how the domain needs to be renewed, etc. Sure, maybe the buyer can get a lawyer and talk to the registrar and figure something out, but it's not a certainty and still a hassle compared to simply using an escrow company.

On the seller's side, it's also a lot easier to just let the escrow/registrar's automated system send emails to collect monthly/yearly payments, compared to having to contact the buyer and maybe chase them for it.
 
Last edited:
2
•••
I appreciate if you could DM name of the domain. Thank you.
 
Last edited:
1
•••
If the buyer wants the illusion of control over the domain... your best route would be Epik, or another registrar that will legit put the domain in his account, but are definitely going to yank it out and put it back into yours if they default.

I'm not sure why you're trying to get a third party involved here on nP. no offense but it feels scammish.

You're expecting someone random to throw down $50,000 to you, while YOU control the domain and can simply make the excuse that the buyer somehow got the domain... no more payments i guess.. whoops. Or something.

Or even if you give the domain over to the nP lender, then the buyer defaults after making TWO $2,000 payments... the nP lender is left with -$48,000 and a domain that /might/ not sell again.. while you're keeping the $75k.... and the buyer is innocent because he didn't get the domain... the nP lender did.

I feel really uneasy about this. Just go through Epik or Namesilo. Take your installments. If you want the whole thing up front, i feel like it's a roundabout scam or a way to sell a domain sneakily.
 
2
•••
I have noticed from past threads that you seem to often get in your own way when it comes to completing deals.

Hi

basically, i was going to say same thing.

with all the posts about domain leasing/ renting etc....
it seems like arranging the financing for the buyer yourself, would be first consideration.
you want to get the process in motion asap, or they could walk.

there are many options previously listed and all the tagging and publicity isn't prudent.


imo...
 
4
•••
If it's a new two-word handreg with social media handles that were up until now availabe to be acquired, then take the $30k the buyer is willing to wire, transfer the domain, and run. ASAP
 
2
•••
Hello,
I have a deal for $50,000 for a domain.

The buyer has $25,000 cash but needs to finance the rest $25,000.

We tried @Lendvo Domain Financing and they seem to be dragging their heels and now I contacted them @domaincapital

Does anyone know some other options? thanks in advance.


Why don't you collect the $25k and let them pay the other $25k spread on installment?
 
1
•••
Sorry guys just read all your replies. The domain is a two word domain. Not sure yet if buyer wants sale announced.

so of course I’d like the amount in full so I can just hand over the domain done and done. I really hate the long drawn payment plan option. Spoke to buyer. He told me @Lendvo Domain Financing is dragging things.

Then contacted @domaincapital and they said they would get back to me.

buyer is willing to do $30k cash wired to me and make installment payments of what he would have paid lendvo. Not sure if I should tack on interest like lendvo probably would have. Not even sure what the typical interest would be in such a loan.

Buyer seems to trust me since I have over 19,000k+ followers on LinkedIn and told him I wouldn’t jeopardize me rep with stealing money or cheating anyone. So it’s not like I’ll take the money and disappear tomorrow. Of course an agreement will need to be made on the terms and conditions and payment plan.

The domain is with @Epik.com @Rob Monster :xf.wink:

So yea I do want the $50k upfront I have plans to develop a domain or domains I own so my business/hobby pays for itself as far as renewals.

I want to start a domain auction site with one particular “gimmick” that I think will make it unique and a total killer.

but we shall see.:xf.grin:

this domain once paid for will be like how CoinMena.com was the most expensive domain sold for keyword “mena”. This domain will be the highest domain ever sold for this particular keyword. The highest right now for this keyword is $25,000.

can’t wait to tell you guys if I can if the buyer allows me. He probably will. He likes the idea.

and yes it’s a handreg!

When asking for a large sum of money for a domain one of the best ways to attain that is to accept payment plans. Everyone would like to be paid in full yesterday. But not everyone can plop down 50K plus at one time and you need to bear that in mind.
 
1
•••
To everyone stating the obvious I already offered the buyer the option to pay $30,000 cash and make upfront payments. The buyer himself seemed not to like this idea.

so I'm going by what the buyer seems to want to do. Reminder. as stated. The buyer himself went about contacting Lendvo himself. I did not give him the idea to contact them. He did his own homework. I thought at first he was going to just pay the $50,000 cash. I did not know he was going to put up $25,000 cash and then the rest financed.

I only just came on here because Lendvo Fell thru the day I created this thread. So please let's stop asking "why didn't seller just offer to do payment plan" yadda yadda yadda.

Not stupid here. soon as I found out what was going on with Lendvo it was the FIRST thing I offered buyer.

THE FIRST THING.

but....it seems the buyer wants to see what Lendvo has to say. The problem is they seem to have ghosted on them.

Also I just checked their website (lendvo) and it seems their "contact" button is no longer active. Like you put the cursor on it and you can't click it.

Does that mean they are no longer in business? probably.

This is why I came here and created the thread. I want to help the buyer do what he wanted to do. For whatever reason the buyer wants this to be "Pay the $50,000 to the seller (That's me) and get the domain."

Again. I repeat this is NOT my doing or suggestion. it's all on the buyer. After doing my research myself there seems to be no options as far as something like Lendvo. DomainCapital did not get back to me. So now I probably will have to go with the "$30K cash and then monthly installments".

The problem now is having the agreement drawn up but all the templates for "Loan Payment plan agreements" all just look very complicated and wordy. I wanted something simple.

also I'll probably do the entire thing in house to save the buyer time and money and get this done.

I like the idea of a miss three payments the loan goes into default and the $30,000 is forfeit plus the domain.

I did offer an interest free option but I think I'll have to offer a 10% interest on the loan not for the entire $50K but the remaining $20K. or should I charge interest on the whole amount?

What is the usual way of doing such loans? I've never been "the lender" so this is all new territory.

As many have stated. I need to act quick before buyer runs.

anyone know of a good domain payment plan template where cash was given as collateral? and monthly payments are still being made? I'd appreciate suggestions as far as templates.

I just hope the buyer will be ok with not owning the domain outright like he originally wanted.
 
0
•••
Back