Lighter Hearts Home Care — Owner Financing Structure

$895,000

Listing Price

80%

$716,000

Buyer Cash / Bank Financing

20%
$179,000
Owner Financing (No Down)

6.0%

Interest Rate

10/6

10-Yr Amort

6-Year Balloon

Investment Snapshot

Financial Performance at a Glance

Key investment metrics based on trailing 12-month actual performance (June 2025 through May 2026).

SDE (TTM)

$405,093

Seller's Discretionary Earnings

Cap Rate
45.3%
SDE / Asking Price

Operating Profit

$370,633

Trailing 12 months

Monthly SDE

$33,758

12-month average

SDE Multiple

2.21x

Asking Price / SDE

Payback Period

2.2 yrs

All-cash scenario

Based on actual P&L data, June 2025 through May 2026. SDE includes verified owner add-backs (Mar-May 2026). Buyer should independently verify all financials during due diligence.

Financing Scenarios

Cash Flow with Financing

Three acquisition structures showing how financing affects your monthly cash flow and return on investment.

All Cash Purchase

Asking Price$895,000

Cash Required$895,000

Annual SDE$405,093

Annual Debt Service$0

Annual Cash Flow$405,093

Cash-on-Cash ROI45.3%

Payback Period2.2 years

80% Cash + 20% Owner Financed

Asking Price$895,000

Cash Required$716,000

Owner Loan$179,000

Annual SDE$405,093

Annual Debt Service (Owner)$23,847

Annual Cash Flow$381,246

Cash-on-Cash ROI53.2%

Payback Period1.9 years

10% Bank Down + 20% Owner

Asking Price$895,000

Cash Required$89,500

Bank Loan (SBA 7(a), 10%)$626,500

Owner Loan (6%)$179,000

Annual SDE$405,093

Annual Debt Service (Total)$104,636

Annual Cash Flow$300,457

Cash-on-Cash ROI336%

DSCR3.87x Healthy

Scenario 3 assumes SBA 7(a) terms: 10% down on asking price, 70% bank loan at 10% interest over 15 years, 20% owner financing. Owner financing terms: 6.0% interest, 10-year amortization, 6-year balloon. DSCR (Debt Service Coverage Ratio) compares SDE to total annual debt service. All figures based on trailing 12-month actuals. Buyer should independently verify.

Monthly Payment Structure

Payment Breakdown

How each monthly payment of $1,987.27 on the owner-financed $179,000 is allocated between principal and interest in month one.

First Month Allocation

Principal vs. Interest — Month 1

Principal ~$1,092 (55%)

Interest ~$895 (45%)

Your first payment: ~55% principal ($1,092), ~45% interest ($895). The principal portion grows each month as the loan amortizes.

Amortization Snapshot

Remaining loan balance over the 72-month term

Remaining balance decreases steadily before the balloon payment due at month 72.

Six Year Projection

6-Year Summary

Cumulative figures over the 72-month initial term before the balloon payment.

72 Payments Made

$143,083

72 × $1,987.27 monthly payments

Principal Paid in 72 Mo

$94,382

Reduces loan balance

Interest Paid in 72 Mo

$48,702

Seller interest income

Balloon at Month 72

$84,618

Remaining balance due

Cash/Bank + Payments (72 Mo)

$859,083

Before balloon payment

Total Paid in 6 Years

$943,702

Cash/bank + payments + balloon

Deal Structure

How the Financing Works

Key terms of the seller-financed acquisition from the listing agreement.

Acquisition Structure at a Glance

The buyer covers 80% of the purchase price via cash or bank financing at closing, with the seller financing the remaining 20%. No down payment is required on the owner-financed portion. The loan amortizes over 10 years with a balloon payment due at the end of year 6. Prepayment is permitted without penalty.

Buyer Cash / Bank Financing $716,000

Owner Financing (20%) $179,000

Balloon at Month 72 $84,618

80%

Buyer Cash / Bank

20%

Owner Financed

Included with the Transaction

Transition Support

Structured handoff designed to protect operations, relationships, and continuity of care.

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6 Months Transition Support

Direct seller involvement during the critical post-close period to ensure smooth operational continuity.

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6 Months Part-Time Consulting

Following the transition period, part-time consulting at a mutually agreed hourly rate or flat monthly retainer.

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Agency Director Continuity

The Agency Director remains available for phone consultations with employees, clients, families, and the buyer to ensure relationship continuity throughout the transition.