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

[WhoaDomain.com]

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.

 

[frank-germany]

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

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.

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!

I really don't see your problem

just take the $30K USD and the monthly installments

you are not an easy to deal with person...

 

[poweredbyme]

- Take the upfront and some collateral for the remainder.
- Take the upfront and barter for the remainder.

 

[Super-Annuation]

1) You could suggest he obtain funds from their retirement account in order to start or buy a business without incurring an early withdrawal fee or tax penalty. This is not a loan.

2) Low interest redraw facility on his property, managed funds etc.

3) Take out a business loan (many banks match the deposit) and enjoy the tax advantage of the debt being tax deductible.

4) Offer lease to buy.

5) Have them offer collateral and draw up a contract.


Hope this helps.

 

[karmaco]

So are you going to let us know what happened @WhoaDomain.com ?

 

[GreatBrand.in]

It is interesting discussion when Buyer is insisting for 50% payment plan and unable to get from respective Banks and we all are suggesting seller @WhoaDomain.com to set Escrow account, payment plan, reduce price and all.
Beyond that Buyer is interested on this domain and willing to pay $ 50K, here I observed two missing links and could be resolve by educating buyer:

1. It seems Buyer is interested in a tax benefit and thus wanted to have $25K Loan on his bank account or company's book of account. The reason is unknown but could be some profit set-off, tax-saving tool or getting some benefits announced by the Govt due to ongoing economical crisis or anything. As we all are approaching towards the year-end, the big loan in one go will only suffix this requirement. As we all knew payment installment options will continue this year to another 2-3 years depend on payment tenure which seems he doesn't want.

2. He is not aware of how domain installment system through Escrow or other specialized agency works and finance. He wants absolute control from the day which anyway he will get in Escrow too.

Now if we consider these two assumptions we will be able to find a suitable solution for this case. However, the alarming signal is that he is not able to secure funding from his own preferred bank. If it is a normal procedural delay from the Bank/ Funding agency side than I would like to congratulate @WhoaDomain.com in advance for such big deal as it will be automatically clear by the financial company on or before 15 December 2020 before the closing of this financial year as the buyer will not take this loan next year.

So congrats and best wishes for many more future deals

 

[WhoaDomain.com]

So are you going to let us know what happened @WhoaDomain.com ?

Sure once I lock it down. It seems the final result will be a payment plan with interest over 3 years with $30k upfront. You guys can so the math on 3 years.

Buyer will also have option to get a conventional bank loan for the $20k to avoid the interest I am charging. Although he will incur probably create interest at the bank than with me but he is very adamant on having this domain in his hands right away for his own reasons which I won't question and will respect.

So all in all I think this is a done deal. I just hope he is ok with the fees and the interest that goes to me.

Also I don't think he has credit issues so bad that he can't get a traditional loan. Did a quick background check and financials and he seems (on paper) to be doing well. We all know how difficult it is these days to get a bank loan in a time frame you want even with good credit. I think the buyer thought things would go smoother with a company that specializes in financing domain acquisitions. You would think. I guess he was wrong? I don't think banks even have a "section" that handles domain financing. Cars sure. Real estate sure. But intangibles? Nope. This is why I suspect he did not go that route immediately. I'm not 100% sure.

I think if this pandemic has rocked this economy and banks to its core then surely the same goes for domain financing options. It doesn't necessarily speak to the buyers ability or inability to repay a loan. I think most companies are just now more cautious than others during this time of uncertainty. Yeah sure you will see the occasional domain sale here and there for $10k and $50k. I think that is more of an indication that smart people are realizing where this is all headed. Physical retail stores will go the way of the Dodo and digital is the future.


So yeah. This deal is pretty much done at $50k barring anything catastrophic. Crossing fingers and hoping for the best.

 

[Donnyd]

Option 2. Buyer finds another domain for 25k and deal is lost.

Take 25k spread it out over 12 months at escrow.com. And be done.

 

[WhoaDomain.com]

I really don't see your problem

just take the $30K USD and the monthly installments

you are not an easy to deal with person...

As stated. For whatever reason the buyer is of the mindset to find a way to get financing for this domain so he can give me the full $50,000. I keep repeating myself over and over again.

Me? I don't care either way. I offered the $30K down and $20K in installments but the buyer seemed hesistant.

That's not my fault. But as a seller you need to accommodate your buyers need or want. You can't push what you want and ignore what the buyer seems to want which is do some type of financing where he ends up paying me the full $50K and he walks away with full control of the domain.

Don't ask me why. This is what he wants.

Option 2. Buyer finds another domain for 25k and deal is lost.

Take 25k spread it out over 12 months at escrow.com. And be done.

I have had situations like that happen on the regular. Trust me. but I have never met a buyer who transparently showed me how much they like this domain.

He genuinely likes this domain name so I'm confident Option 2 isn't really an option for this buyer.

People like what they like.

I think we are close to finalizing this deal. I'll give you guys updated.

 

[WhoaDomain.com]