Renan Cortez·July 4, 2024

It Really Happened: 100% Financing for an $8m Business | Renan Cortez Interview

Renan Cortez is a half-Filipino, half-Puerto Rican military veteran (12 years active duty as a combat medic/cardiology specialist) who spent 15 years in medical device sales at Medtronic and Abbott before buying a New Jersey-based restoration and reconstruction company for $8 million with 100% seller financing and essentially no money down. After a failed cannabis startup attempt and an MBA from University of Maryland, Renan discovered business acquisition through Cody Sanchez's community and found the deal through a VA-run proprietary outreach service. He convinced two brothers (co-owners who wanted a complete exit) to hold a 12-year note at 7% — paying them roughly $11.8m total versus the $8m cash they'd get elsewhere — by showing them they'd earn $3.8m in interest that would otherwise go to a bank. Year one was turbulent: he implemented too many changes simultaneously, nearly missed payroll, and needed a bridge loan. The business (rebranded Syndicate Building Solutions, ~$2m EBITDA, ~35 employees) has since stabilized under EOS and delegated management. Renan is now pursuing an ambitious roll-up strategy under Syndicate Venture Group, targeting restoration and capital improvement companies across the US with a goal of $100m EBITDA and a $1-2B exit in five to seven years, pending the close of roughly $220m in institutional capital commitments.

Deal facts

purchase price: $8m
multiple: ~3-3.5x SDE (stated typical range for sector; buyer paid higher multiple in exchange for seller financing)
sde ebitda: ~$2m EBITDA/SDE
financing structure: 100% seller financing — seller held a 12-year note at 7% interest; no money down, no SBA, no outside equity
notes: Total payments to seller approximately $11.8m over 12 years (vs. $8m purchase price), with ~$3.8m representing interest that would otherwise go to a bank. Debt service after financing leaves ~$1m+ net annually. Renan had only ~$70k set aside at time of purchase. Business is a restoration/reconstruction company (Restore Pro, later rebranded Syndicate Building Solutions) in the New Jersey area, acquired off-market via VA/proprietary outreach. Signed November 2022, took over January 2023. ~35 employees at acquisition.

Why this business

Renan initially looked at everything from frozen yogurt to dry cleaning, but stumbled onto a restoration company through his VA's off-market search. He fell in love with the strong profit margins (60-70% gross, 25-30% net), the recession-resistant nature of the work (people always need restoration after floods or fires regardless of the economy), and the fact that the business was not being run efficiently — he saw it as a significant operational opportunity. He also preferred the scale (35 employees, management layers) over a small dry cleaning operation where he'd be doing everything himself.

What's working

100% seller financing negotiated by educating the seller on the math: seller earns ~$3.8m in interest over 12 years instead of the bank collecting that money, yielding roughly $11.8m total vs. an $8m lump-sum check
Implementing EOS (Entrepreneurial Operating System) and right-people/right-seats discipline turned a micromanaged operation into a delegated one — managers now run day-to-day operations with minimal owner involvement
Strong gross margins (60-70%) and net margins (25-30%) due to keeping work in-house rather than subcontracting, which is uncommon relative to franchise competitors
Pivoting toward multi-year commercial capital improvement contracts (e.g., HOAs, developers) for more recurring, predictable revenue — moving away from storm-driven residential work
Veteran-owned status creates competitive advantage for GSA and government set-aside bids
Off-market, proprietary sourcing allowed Renan to shape the seller's thinking directly, without a broker interfering with the seller-financing pitch
Business is now sufficiently delegated that Renan can focus on building a roll-up platform (Syndicate Venture Group) targeting additional acquisitions in restoration and capital improvements

What's hard

Working capital crisis in first year: Renan implemented all improvements simultaneously (rebranding, new office, fleet expansion, new technology, marketing) and nearly ran out of cash to make payroll — required a bridge loan and caused significant stress
100% seller financing is not repeatable at scale — Renan estimates he pitched 20-25 sellers on this structure before finding the one perfect fit; requires a very specific seller profile (doesn't need the lump sum, younger enough to wait, trusts the buyer completely)
Capital raising for the roll-up has taken 3x longer than expected — Renan has been waiting months for $203m in private debt and $17.5m from an emerging-manager program to close, creating tension as LOIs on acquisition targets age
Construction/restoration businesses are viewed skeptically by traditional lenders due to cyclicality, which is a constraint on conventional financing
Transition from corporate to ownership required full-time commitment from day one — the prior owners ran the business 12-13 hours/day and micromanaged everything, leaving no real infrastructure to hand off

Notable quotes

Would you rather I pay 8 million for your business or 11.8 million? He's like what are you talking about.

I found myself where we're like holy cow how are we going to pay payroll because we did all the things.

I'm talking about deep dark not in your stomach crying because you do not have the backup or the safety net of big Fortune anything or big Corporate America. It is on you. There's families at stake.

Hell if I could do this with no money imagine if I raise capital to buy additional companies.