Indie App Santa · acquired app
Buy a profitable app with a 10-year loan and pay it back from the app's profit
Money back in 3-4 months on one purchase; example leaves ~$5K a month after loan payments
Workedfinancingexit-ma
What they did
Rather than paying cash, take a loan for the purchase price. Illustration: an app making $10K/month profit bought for $350K on a 10-year loan with ~$5K/month payments leaves ~$5K/month profit; price is earned back in ~3 years with 7 more years of loan term. Only buy apps with organic distribution built in, so profit doesn't depend on continued ad spend. Used for Indie App Santa (2024) even though they had the cash.
What happened
Indie App Santa paid back in 3-4 months.
- Stage
- Exit (acquisition)
“So my math says, okay, I just paid you 350 for your app that's doing $10,000 a month. I have to pay back my loan for 5,000. I'm technically profiting $5,000 a month, right?”
“So instead of just giving a full lump sum and just being like, "Ow, this much money," I was like, "Let's just take the loan and we'll still make money and I don't have to use my own money to do it."”
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