Has anyone purchased a book of business that can share their experience. Specifically what to look out for, who provided your financing, and the how the renewals are paid out. I'm in the market to purchase a book around 250,000 in commissions and am in the process of obtaining financing for it. Thoughts? Suggestions? Advice?
Buying a Book of Business
- Thread starter Goot
- Start date
- 9,744
Not many (if any) outside funding sources to purchase an insurance BOB. The seller generally ends up doing the financing (if they really want to sell), which is better for you. You've got some leverage in case of misrepresentation, etc.
if you don't have major collateral I find this hard to believe you will be able to get financing. I tried several years ago and nobody will lend. Good Luck.
- Thread starter
- #4
Luckily I have the collateral (money) to qualify me for financing. Are there any set backs to doing this. For example, if I purchase a book of business that pays commissions of 250k per year and that covers all of my overhead, including paying back my loan; what would/could be the downside. Just seems easier to buy a book of business and have instant revenue versus building it a little at a time? Thoughts?
for a book giving you $250k per year will cost you atleast $500k. If you can afford it I agree that is the way to go. Do major research on the book of business you are buying. What companies they write with and the type of business is very important.
- 1,473
The financing depends on the Carrier you are buying. if its captive it easier to get financing. Is this a captive book and what company?
- 5,243
Sorry to ask this, but why an insurance book? I can think of a couple.of different businesses I'd rather buy
- 2,627
- 5,243
Preschool... .
- 2,627
You would need everything I said just to be able to handle a preschool
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A preschool is a failed business without what I mentioned
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