How to Buy a Business for $1

Most business buyers come to the table thinking they need more capital to get a deal done. But according to Yoseph Israel—a Navy veteran turned serial acquirer—capital isn’t the limiting factor. The real challenge is learning how to build trust with the seller, structure creative deal terms, and address the seller’s actual problems.

“Your job is to get the seller to like you, trust you, and feel like you’re the perfect person for their business.”

In this recent live workshop, Yoseph laid out his system for acquiring profitable small businesses for as little as one dollar using seller financing, relationship-driven outreach, and contract structuring that aligns incentives.

Why most people fail at seller financing

Many SMB buyers approach seller financing with a sole transactional lens. But when it comes to buying a small business, especially from an owner who spent decades building it, that strategy almost always falls flat.

Business owners aren’t just selling a financial asset, they’re handing off their legacy. Many of them have spent decades building their business. So instead of treating your conversations with the seller as a spreadsheet or checklist, Yoseph emphasizes the importance of building a relationship. That means holding off on overly direct or transactional questions like “will you finance part of the deal?” until you’ve demonstrated real interest in the business.

Buyers also tend to overtalk. They want to share their resumes, talk about their investor commitments, or explain why they’re passionate about small business. Sellers, however, only care about one thing: whether you’re capable of solving the problem that’s prompting them to sell.

That problem might be retirement. It might be burnout. It might be health, family, or succession. Your job is to uncover that motivation, not by interrogating them, but by listening and asking thoughtful questions.

Just as importantly, you need to respect the business, even if the margins are thin or the books are messy. Buyers who walk in pointing out flaws, demanding discounts, or comparing comps are unknowingly insulting the very thing they’re trying to acquire.

Ultimately, the path to seller financing will appear through your empathy, respect, and trust in seller conversations, rather than a negotiation. 

Case Studies: 3 real $1 acquisitions

One of the most common reactions we hear when buyers learn about seller financing, particularly in extreme cases like buying a business for $1 down, is skepticism. It sounds too good to be true. 

While a $1 acquisition might sound too good to be true, Yoseph has successfully done a deal like this more than once. 

In the workshop, Yoseph walked through three real deals he personally closed, each with little or no capital upfront. These aren’t just clever case studies. They’re proof that when you build trust and approach deal terms creatively, traditional capital barriers can be replaced with alignment and shared incentives between you and the seller.

Let’s dive in.

1. A $1M diesel shop listed on BizBuySell

This first deal started in a place many experienced acquirers avoid: BizBuySell. The listing was straightforward: a diesel repair shop doing $2M in annual revenue and generating about $250k in EBITDA. The seller was asking $1M.

But there was a catch: the seller hadn’t filed taxes in several years. That made the business ineligible for SBA financing, and most traditional investors wouldn’t touch it.

Where most buyers would disqualify this listing, Yoseph saw an opportunity.

Rather than fixate on the tax issue, he focused on cash flow. He verified the company’s financials through bank statements and merchant processing data, then approached the seller directly. Instead of trying to negotiate the price down, he proposed a creative solution.

He negotiated for 50% equity in the business for $1, then raised a $250k merchant cash advance. Half went to the seller. The rest became working capital and a stepping stone into ownership.

2. A tire shop owned by an 84-year-old soon-to-be retiree

In this case, the business was listed for $450k by a broker. On paper, it looked small: $800k in revenue and just $24k in reported profit. But after normalizing for the seller’s salary and family members on payroll, adjusted earnings jumped to $85k.

The seller was 84 years old and ready to retire. What she wanted wasn’t just a buyer—she wanted out, without the burden of transition or disruption to her team.

Yoseph didn’t push for seller financing upfront. Instead, he worked with the broker, clarified expectations, and positioned himself as someone who could preserve her legacy while relieving her of operational responsibility.

In the end, he acquired 40% of the business for $1. The seller paid the broker out of pocket, and Yoseph brought in an experienced manager from one of his other shops to oversee operations. The seller stepped away gradually, and Yoseph assumed full control over time.

3. A Craigslist diesel shop with zero out-of-pocket cash

The third acquisition is arguably the most remarkable, because it was entirely funded without any of Yoseph’s cash.

The business was listed on Craigslist for $140k. It generated $350k in annual revenue and about $100k in profit. Yoseph didn’t have to use his own money. He leveraged leftover capital from the merchant cash advance in the above diesel shop deal, partnered with a few investors, and structured the equity in a way that made the deal cashless for him personally.

Eventually, those investors bought out his remaining shares at a $200k valuation, providing a clean exit.

The 3-step seller financing framework

Successful deal sourcing requires consistent effort and discipline. Establish a structured process, set measurable goals for outreach, and regularly evaluate your progress. Being methodical ensures your pipeline remains robust and keeps opportunities flowing steadily.

Successful acquirers don’t lead with LOIs or seller financing requests, they build trust first. Yoseph Israel’s “$1 business buying framework” helps structure conversations in a way that gets deals done, even with emotionally attached sellers.

Here’s how it works:

Step 1: Build a rapport that runs deeper than the business

Don’t open with tax return requests or offers. Start by getting the seller to open up about anything. Let them do 90% of the talking. Ask open-ended questions and follow their lead, whether it’s about fishing or first customers.

This approach builds a deeper connection. 

Yoseph’s rule of thumb:

• 90% of the conversation = the seller talking

• 7% = you asking questions

• 1% = you talking about yourself

Step 2: Treat the deal like you’re paying full price

Yoseph often writes his first offer at asking price—not because he plans to pay it, but because it creates space for honest due diligence.

The key is to signal seriousness. When sellers feel like you’re truly evaluating their business—not just trying to beat them up on price—they’re far more cooperative. They’ll share tax returns, bank statements, customer contracts, and more. And each document you request becomes a small step toward psychological commitment.

Rather than jump into value disputes, Yoseph frames early calls as a “fact-finding mission.”

That mindset gives him leverage later. Once the seller trusts him and once he’s under LOI—he presents the problems. Maybe the margins aren’t strong. Maybe there’s deferred maintenance. Maybe customer concentration is high. But by that point, the seller sees him as the right buyer, not just another bidder.

Step 3: Structure creatively and present collaboratively

Once aligned, Yoseph walks the seller through the contract in a live meeting, line by line, with the seller. He often uses what he calls a “work-in buyout agreement.”

It might involve:

• Acquiring partial equity upfront

• Keeping the seller on salary during a transition

• Structuring a back-end earnout based on future profitability

• Or, if outside financing is involved, delaying seller payments until after he raises additional capital

The specifics change deal by deal. But the constant is collaboration. Sellers aren’t getting pressured—they’re joining a plan that feels thoughtful, fair, and custom to their situation.

Why seller financing helps your capital go further

Seller financing doesn’t just help you, it reassures your investors. When a seller holds paper or agrees to an earnout, they’re showing confidence in both the business and you. That shared risk lowers the upfront capital needed and improves your deal’s structure.

Instead of covering the full purchase price, investors fund a smaller amount, potentially increasing your internal rate of return, making your deal more attractive to Mainshares investors.

“Your investors are gonna feel more comfortable…when they know that the seller has a little skin in the game.”

There’s another big advantage: post-close cash flow flexibility.

Many new owners underestimate how tight things get in year one. If your cash is locked up paying down bank debt or returning capital to investors, there’s little left for hiring, marketing, or fixing operations. Seller financing, especially performance-based earnouts, gives you breathing room.

Momentum is your greatest asset

Every buyer wants their first deal to be perfect. Great margins, clean books, smooth handoff, aligned seller. And while those things are worth pursuing, we’ve found that momentum matters more than perfection.

Your first acquisition creates a flywheel. It gives you credibility, confidence, and a real-world proof point you can point to in future conversations with sellers, lenders, and investors alike.

Future deals often get easier to close, not just because of your experience, but because you now have a story. Sellers take you more seriously. Investors lean in faster. 

Yoseph uses that dynamic to his advantage. When he’s pursuing a new acquisition, he often invites the seller to meet him at one of his existing businesses. They see a real operation. They see his team. They picture their business in the hands of someone who’s done this before.

“One of the easiest ways for me to negotiate seller financing is to invite sellers of another prospective business that I’ve bought to my other business.”

If you’re debating whether to pursue a “less-than-perfect” first deal that is smaller, messier, or more creatively structured than you initially imagined, just remember: you don’t need the perfect business to start. You need one good deal to unlock everything else.

Thanks again to Yoseph Israel for sharing his insights in the Mainshares Network! Want to connect with him or access his full framework? Visit TikTok.com/skipthestartup or email [email protected].

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