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What Nobody Tells You About Seller Financing

Banks love to say no to small business loans. Here’s how seller financing actually works, why it might be your best option, and the one mistake most sellers make when structuring the deal.

I remember the exact moment. We were sitting at dinner, and my son was telling us about his new job at some tech company in Austin. He was excited. Really excited. More excited than I’d ever seen him talk about our HVAC business.

That’s when it hit me: he’s never taking over.

The Plan I'd Had Since He Was Ten

I started Rodriguez HVAC in 1991 with a used truck and a toolbox. By the time my son was in high school, we had 12 technicians, a solid customer base across Houston, and I was already thinking about how I’d teach him the business.

Every summer, he worked with us. He was good at it too. Customers liked him. He understood the technical side. I thought we were building something together.

What I didn’t realize was that he was just being a good kid, helping his dad. He never actually wanted this to be his life.

The Conversation I Didn't Want to Have

“Dad, I love what you built. I’m proud of it. But I want to do something different with my life.”

What Nobody Tells You About This Moment

Here’s what I wish someone had told me when I was 50:

Your kids have their own dreams

They watched you work 60-hour weeks. They saw you stressed about payroll and problem employees. Maybe they want something different. That’s not a rejection of you. It’s them choosing their own path.

After that conversation, I went through about six months of being honestly pretty depressed about it. The business felt different. Like I’d been running toward a finish line that just disappeared.

Finding a Better Path

Around that time, I met someone who’d gone through something similar with his landscaping company. He told me about working with a group that helps business owners transition when family succession isn’t an option.

“They found someone who actually wants to run an HVAC business,” he said. “Someone who’ll treat your customers right and keep your guys employed. You just have to let go of the idea that it has to be your son.”

That conversation changed everything for me.

What I Learned About Letting Go
  • The business can outlive you without being in your family. That legacy you’re worried about? It’s in the quality of work, the customer relationships, the team you built. Those things can continue with the right person running it.
  • Your kids can still be proud of what you built. My son talks about the business all the time to his friends. He just doesn’t want to run it. And that’s okay.
  • There are people who actually want what you have. Somewhere out there is someone who would love the opportunity to run an established HVAC company. They just need a way to afford it that doesn’t involve a traditional bank loan that’ll never get approved.

Where I Am Now

I’m 63. I’ve started the transition process. Found a great operator who’s going to take over day-to-day operations and earn ownership over the next few years. My customers are in good hands. My technicians are keeping their jobs. And I’m finally thinking about what I want to do next.

Turns out, I’ve got some dreams of my own. Always wanted to learn to fly fish. Maybe spend a few months in Colorado. Things I couldn’t do when I was working 60 hours a week.

My son? He’s proud of me. Not because I’m handing him the business, but because I built something worth handing to someone. And because I’m finally letting myself have a next chapter too.

The Real Question

It’s not “Will my kids take over?” The real question is: “What do I want my next 20 years to look like?” Once you let yourself ask that question honestly, everything else starts to fall into place.

The Redemption: Finding Purpose in the Lowest Moment

My wife and I welcomed our first son during this nightmare. While I was dealing with charges, facing the possibility of losing everything, our son came into the world.

That changed everything.

I wanted to create something for him. I wanted to build a consulting firm that would help other business owners avoid the mistakes I made. And I discovered a level of resilience that affirmed something I’d always known: my joy for helping businesses do things better is stronger than ever.

This is my third time being successful. I was recognized as one of the 30 Under 30 Most Influential Political Operators in New York. I built the homecare agency to over $24 million in annual revenue. And now I’m building Catan Strategy Group.

I’ve helped three people become millionaires in their businesses. People started asking me for help, so I started Catan to help business owners who needed help with employees or growing their businesses without them being the main employee.

Then I pivoted. I realized there was a huge need in business succession. I was part of a group that sold to private equity for $160 million in enterprise value. I learned what works and what doesn’t when transitioning a business.

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