Buying a restaurant

bbqandseafood · Joined: 17 Oct 2008 Posts: 1

I've been working at a restaurant for 6 years and have recently been offered by the owner to purchase it. I know the ins and outs of the restaurant. The establishment employs roughly 40 people and has been established for 25 years. The business is definitely making a profit and I would love to have the opportunity to own the establishment. The only reason the owner is selling is because she just wants to retire. She wants $1,750,000. I'm only 22 years old and have relatively little credit as I'm so young.

I have a couple of questions. What are my options on financing this purchase? I've been told I would have to pay roughly $500,000 up front and the rest through owner financing for the next 25 years? Is this so, is this the best option? Also, I've been told I can't get a loan from the bank because a restaurant is considered a risky business, but if I can show that the business is making a profit could it better my chances of getting a loan?

Just looking in to my options. Do you have any options that I didn't list, I'm relatively new to this.

Thanks