Contents

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

 

Reciprocal Easements by Prescription

Reciprocal Usage Easements? What is the Purpose? Many buildings that were constructed prior to the 1960s lacked adequate parking, and/or even on-site common usage with for ingress/egress of automobiles. In property law, ingress/egress referred to rights of a person to...

The Downside of Smart Homes

The Downsides Of Selling A “Smart Tech” House Posted on August 4, 2018Natural Living · · · · · · · Like By Catherine J. Frompovich Listen to Article Will your “smart home” become a true headache and liability when you want to sell it? Homeowners had better think about...

Where Americans Move To – Where they Moved From

Just a few years ago, experts indicated Americans (especially young Americans) were more interested in a different lifestyle than previous generations. Instead of owning a house in the suburbs, the new American dream consisted of renting an apartment in the city....

Selling FSBO Can Cost Sellers A Lot Of Money

Selling Your Home Solo to Save Money? You’ll Actually Make Less Than You Think Posted in Economist Commentaries, by Amanda Riggs on July 9, 2018 385 Some homeowners opt to sell their residence without a real estate agent to get around paying a commission and make more...

Renew the National Flood Insurance Program (NFIP)

RENEW FLOOD INSURANCE BUT QUIT SELLING NEW COVERAGE AND QUIT BUILDING NEW HOMES IN FLOOD ZONES SEA LEVELS ARE RISING Can't read or see images? View this email in a browser Have you taken action yet? Time is Running Out Dear Emelyn, The National Flood Insurance Program...

Underwater Properties – Due to Climate Change

Climate Change Will Force the Poor From Their Homes Low-Lying towns and Homes in Washington will be affected too Alamy This story originally appeared on CityLab and is part of the Climate Desk collaboration. It’s no surprise that a list of places most at risk from...

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.

Author

Author

What To Serve A Goddess When She Comes For Dinner Welcome To My Book I highly recommend it. I had a lot of fun writing it. My book has 464 page book. It is 8.5″ x 11″ in size. It weighs three pounds. It is a beautiful book. It comes autographed. I can autograph it...

Seeking Lease Option and Contract Sellers

Seeking Lease Option and Contract Sellers

Seeking Lease-Option and Seller Contract Sellers  Open Phone Line to Brokers, Buyers, Sellers 425-774-6611  -  888-999-2022 I am working with several buyers who have strong income and good down payments but who have bad credit and cannot get financing.  These buyers...

Blacks Against Mandatory Vaccination

Blacks Against Mandatory Vaccination

African-American community rages against manditory vaccination in California and the Tuskegee-like crimes of mandatory vaccines that destroy black babies' lives http://www.naturalnews.com/050038_SB277_vaccine_mandate_Tuskegee_medical_experiments_African-Americans.html...

Services We Offer

Services We Offer

We have an open telephone line to brokers, buyers, sellers, and clients in general who may need help with buying or selling real estate or who may need help with mortgage modification. Services we offer: Help to Brokers, Co-Brokering Escrow Setup Lease Option Deals...

Door-To-Door Transit

Door-To-Door Transit

Door-To-Door Transit: The Only Solution To Our Traffic Nightmare by James Robert Deal, Attorney Traffic is bad and getting worse, and there is no solution in sight, as one would conclude from reading Eli Sanders’  “Welcome to Town, Here’s Why You’re Stuck in Traffic”...

Seller Financing – The Original Financing

Seller Financing – The Original Financing

AN ABBREVIATED HISTORY OF CREATIVE FINANCING The first forms of financing was seller financing. The buyer would buy personal property or real property and pay the seller on an installment basis. Over time lending houses grew up, and purchase mortgages developed....

Lease-Option Deals Open Doors

Lease-Option Deals Open Doors

LEASE-OPTION AND LEASE PURCHASE DEALS A lease-option or lease-purchase deal is a form of seller financing.  With the lease-option deal, title stays in the seller until the buyer refinances or resells or otherwise pays off the seller. The wrap-around deed of trust deal...

Zombie Foreclosures

Zombie Foreclosures

CFPB: Zombie foreclosures hurt borrowers The Consumer Financial Protection Bureau is keeping an eye on “zombie” foreclosures, which it worries cause “direct borrower harm,” according to a CFPB executive. Zombie foreclosures occur when a bank starts the foreclosure...

New Federal Rules on Foreclosure

New Federal Rules on Foreclosure

New Federal Rules on Foreclosure —By Erika Eichelberger - Thanks to Mother Jones On Thursday, the Consumer Financial Protection Bureau, the federal consumer watchdog set up by the Dodd-Frank financial reform bill, announced a new set of foreclosure-prevention...

Washington MERS Suits Fail

Judges Dismiss MERS Suits By Evan Nemeroff Two borrower-initiated lawsuits alleging that the Mortgage Electronic Registration Systems role in the plaintiffs' deeds of trust caused them injury were both dismissed by federal judges in the Western District of Washington...

Modification on Rental

Modification on Rental

It is harder to get a mortgage modification on a rental property than it is on an owner occupied property. The rules are not as clear. You need a higher income to qualify for a rental modification because you have to be able to cover your home mortgage. Nevertheless,...

Making Home Affordable Continues

Making Home Affordable Continues

HAMP continues aiding borrowers Three firms still fall short in meeting servicing goals. Thanks to Housing Wire. Kerri Ann Panchuk December 9, 2013 4:48PM Bank of AmericaCitiTreasuryHome Affordable Modification ProgramHAMPhomeownersObama AdministrationHousing...

Rental Property Modification

Rental Property Modification

This is a rental property modification. Ocwen was the servicer, and the investor was Washington Mutual and now Chase. The owner quit paying for 20 months, and the balance rose to $254,000. The interest rate was already under 3.0%, because this was an adjustable rate...

Subscribe To Our Newsletter

Join our mailing list to receive our latest news and updates.

You have Successfully Subscribed!

Pin It on Pinterest

Share This