Business partner scamming me?

we decided to look at a nice restaurant thats for sale about 40 min drive. They asking $120,000 or best offer. They make $1500 a day which seems too good to be true.My business partner says he reached a deal with the owner and wants only $40,000 from me to pay off the rest. He is not telling me exactly how much

we decided to look at a nice restaurant thats for sale about 40 min drive. They asking $120,000 or best offer. They make $1500 a day which seems too good to be true.My business partner says he reached a deal with the owner and wants only $40,000 from me to pay off the rest. He is not telling me exactly how much they agreed on and will not show me papersiv never owned a restaurant before and really don't know how things work like what bills to pay or what paper work look like to signif my business partner gives me paper work who should i take them too?? so they can help me out and translate exactly what im about to sign on ? or should i just walk away from this deal

Best Answer:

Joey: If you don't know the business, or understand the business, it would be a HUGE mistake to invest. When you make statements like "makes $1500 per day" and say it's not possible, that's a clue you are clueless. Restaurants routinely generate $1500 in sales per day, much more for some busy restaurants. So you be a fool to invest without knowing this business. If you are still interested, you need ALL paperwork, all agreements and that includes detailed financial statements for the last several years from the restaurant to show what it does. You would then need to a do a thorough review with an attorney before making any decision.

My best advice is to look somewhere else and contact a financial planner to seek out the best investments to make based on your experience and other factors.

Other answer:

Joey:
Walk away and don't do any business with your so called partner again. He probably is not telling you the entire story. He just needs your money. And how do you know they are currently making $1,500 a day ? Is that what they are taking in a day or the net profit after expenses ? Any business with a partner you should have an attorney draw up the partnership agreement before buying anything.
shipwreck:
Walk away. You don't know how to evaluate a business and are likely to lose everything you own.
When they say $1,500 a day does that mean after all expenses and taxes and paying yourself and your partners? How many years have the paid taxes on that income? Why don't they want to keep this cash cow?
A Hunch:
We don't know if it's a bad deal or not.
But if a business partner is not doing this deal "together", he's not a partner.
Walk away.
tro:
if the partner is not willing to reveal the entire deal he is no partner to get involved with
first of all as a partnership each amount each partner puts into this has to be determined as to what % each partner owns of the entire business, all future income or losses will be determined by this %
if he won't tell you the total you have no way of knowing what your % will be of the depreciation, amortization, flow thru income or losses
if he won't tell you, walk away
Barkley:
Don't walk away – Run and keep your money safe. And Never invest in a deal or business you don't understand.
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Marey:
We don't know if it's a bad deal or not.
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