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Brokering, Buying, or Selling a Business

When a business is being bought or sold, the sale can include the land and building the business occupies, or the seller may be retaining ownership of the land and building and selling only the going business.

The going business is often referred to as a “business opportunity”. I will focus just on the business opportunity aspect of the transaction.

Putting together the purchase or sale of a business is a challenge for many reasons. With real estate, title insurance is available. First, and most important, there is no title insurance for sales of businesses. The buyer must do due diligence to confirm that the seller owns what he is selling.fifty-dollar-bill

Next, a business opportunity has more moving parts than a simple real estate transaction. Some of the additional components are as follows:

If the seller does not own the land on which the business is situated, there will be a lease, which must be dealt with. A lease can be assumed with or without release of liability for the seller. If the lease is expiring, a new lease must be worked out.

The business includes inventory. The sale price is often X dollars plus the value of the inventory. The time and method of doing inventory must be spelled out, and there must be agreement as to whether inventory is valued at cost or below cost by a certain percentage. The buyer sometimes has the right to decline to purchase certain classes of inventory, such as old inventory or inventory which is not readily saleable.

deal-or-no-dealA title search can be done through the Secretary of State. All mortgages against personal property must be filed in Olympia with the Secretary of State.

Generally there is a down payment of part of the purchase price with the seller carrying the balance. Of the buyer may be able to pay all cash, perhaps by getting private financing, an SBA loan, or some other financing. The buyer might obtain new financing for part of the cost and carry back part of the balance in second position, which is more risky for the seller. There might be extra collateral given, which is called side security.

I could go on and on.

I have structured and closed scores of business opportunity transactions. I am available to work with brokers, buyers, and/or sellers to get these transactions set up properly so there will be a clean closing.

Brokers who lack experience with business sales might bring me in as a co-broker, with part of the commission going to me at closing. I a licensed not only as an attorney but also as a real estate broker. This does not necessarily have to cost the listing brokers anything. The seller might agree on an increase in the commission sufficient to cover my fee. Naturally, I charge more if I am going to be paid only if the transaction closes than if I am charging the buyer or seller by the hour.

If you are a buyer or seller and you have been lucky enough to find each other, I am also available to help you structure your transaction and get it into escrow. I can work for buyer or seller but not for both.

I have an open line to brokers, buyers, and sellers to talk generally about transactions where I might help with.

Click here to sign up for my email list.images-251-stop-continue

James Robert Deal, Broker and Attorney
Broker with Agency One Realty LLC
WSBA # 8103, DOL # 39666
425-774-6611, 888-999-2022
425-776-8081 fax

James at James Deal dot com

James Robert Deal, Attorney & Broker

James Robert Deal, Attorney & Broker

 

Become An Attorney Broker

Become An Attorney Broker

Attorneys should also become real estate agents or brokers and joint the JR Deal KW Attorney-Broker Team, a part of Keller Williams.

Final Walk Through on New Construction

Final Walk Through on New Construction

The final walk through is important when buying a new home. Make a punchlist. Listed items can be changed after closing. Expect a final inspection one year after closing.

Helping Other Brokers

Helping Other Brokers

I am a real estate broker and a real estate attorney. I help buyers, sellers, and other brokers throughout Washington. Call me at 425-774-6611 when your purchase or sale involves legal issues. I can often quote a flat fee payable at closing.

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Seller-Financing Restrictions Under The Dodd-Frank Act – Barnes Wallace

The Dodd Frank Act imposed regulations on seller financing. If the buyer will live in the property, there are restrictions which apply. If the buyer will not live in the property, the restrictions do not apply. The restrictions are complex. Consult an attorney.

Buy Real Estate In Partnership

Buy Real Estate In Partnership

If you do not have enough income to qualify to buy a home, join together with several others. But a larger home, big enough for several families. With multiple incomes you can qualify. If you want privacy you can jointly buy a tri-plex or a four-plex. These can be bought with an FHA loan with only 3.5% down.

15605 Cascadian Way Bothell WA

15605 Cascadian Way Bothell WA

15605 Cascadian Way Bothell Washington. $430,000. 3 bedrooms, 2 bathrooms. Buy on FHA Rehab Loan. Hold long term. Eventually sewers may be extended 400 feet, and then two homes, two duplexes or five townhouses can be built. James Robert Deal, Attorney and Broker, 425-774-6611.

18809 65th Place W Lynnwood

18809 65th Place W Lynnwood

18809 65th Place West Lynnwood WA 98036. This house has “good bones.” It needs fixup, cleanup, and your love.

Co-Brokerage Listing Addendum

Co-Brokerage Listing Addendum

As both a real estate attorney and a real estate broker, I co-broker with other brokers, helping them to take more listings and service them better. This provides better service for sellers.

Call A Real Estate Attorney BEFORE You Buy or Sell

Call A Real Estate Attorney BEFORE You Buy or Sell

Call a real estate attorney BEFORE you buy or sell property. Call Attorney James Robert Deal at 425-774-6611. In many cases I offer a flat fee, payable at closing out of escrow.

The Foreclosure Train Rolls On

The Foreclosure Train Rolls On

Private corporations such as Loan Star and Caliber bought thousands of mortgages. The government pays them to modify mortgages, but they are quick to foreclose. They invest in high value instead of low value homes. They should be required to serve the interest of the local neighborhood as are banks. They should be regulated as banks.

Final Walk Through on New Construction

Dodd Frank and Seller Financing

There are seller financing restrictions when the buyer is going to live in the property.. No cash out less than five years. The rate must be fixed for the first five years.

You Need A Lawyer When Doing A Modification

You Need A Lawyer When Doing A Modification

You should be represented by an attorney when you are modifying your mortgage. Servicers break the rules.

Banks Losing Right to Require Arbitration

Banks Losing Right to Require Arbitration

CFPB may allow consumers to sue banks and file class action cases. Banks will not be able to hide behind mandatory arbitration.

Bothell Real Estate Attorney

Bothell Real Estate Attorney

I am a real estate attorney serving Bothell, Washington. Contact me at 425-771-1110 or 888-999-2022.

Call A Real Estate Attorney BEFORE You Buy or Sell

Real Estate Attorney And Real Estate Broker

James Robert Deal is both a real estate agent and a real estate attorney practicing in Lynnwood Washington. If He is your broker, he does not charge extra for legal work related to your transaction.

Author

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Buyers With a Good Down Payment But Poor Credit

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If you are a would-be buyer who has a good down payment and good income but poor credit, I am willing to help you buy property on a lease-option or contract basis. James Robert Deal, attorney and broker. 425-771-1110

Underwater Properties – Short Sales – Modification

Underwater Properties – Short Sales – Modification

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