Posted by John Behle on January 29, 1999 at 18:24:58:
Unless there is sufficient real estate as collateral and they are throwing in the business for free, the buyers are limited. If there is some collateral, you could split the deal into two notes - one for the real estate and another for the business.
Otherwise, you are limited in buyers to a few companies. Two to check are Walt Poser at Poser Investment (sorry don’t have the number handy - but I’m sure there is an 800 number available through directory assistance). The other to check is Lorelei Stevens at Wall Street Brokers (www.wallstreetbrokers.com).
Larry L. Stevens or Lorelei Stevens
Wall Street Brokers, Inc.
500 Wall Street #405
Seattle WA 98121-1577
Phone: (206) 448-1160
Fax: (206) 448-8476
Posted by Frank Pluzdrak on January 29, 1999 at 12:21:48:
John,
I had a R.E. Agent call me about the sale of a preschool and seller carry-back financing. The selling price is $125,000 and the buyers are putting down $30,000. The consideration is that the seller carry-back $95,000 @ 10% or 10.5% interest with a 5 year balloon. The seller lives in Mich. the buyer lives in Fla. but will be moving to CA end of Feb. I know the needs of the seller is important. How should this proceed? The agent is new, can we help her make a commission? What would you suggest?
Frank
Partials and private parties - Posted by John Behle
Posted by John Behle on January 29, 1999 at 18:28:29:
By the way, this deal could also happen with some of the partial techniques we have been discussing and the use of private investors.
Don’t overlook a “Collateral Conversion” scenario. The business buyer could have some other collateral to substitute or add. Business notes sell better after seasoning, so you could also use a staged funding technique to tie up the note until funding is available. That would have to be “contingent” staged funding.