Unusual Deal - HELP!!! - Posted by Rich

Posted by ray@lcorn on December 09, 1999 at 23:39:09:

Rich,

I assume this is the same deal that you proposed the bar for in the post below. I wouldn’t do a bar/restaurant deal for any amount of money, but that’s just me. In fact, I don’t even like to hear my name and the word “restaurant” in the same sentence. You can probably guess that I had a bad experience once upon a time.

Neither would I want to take on a partner in the building unless I was close to losing the property. I would concentrate on getting the guy and his wife in the building as tenants. If not him, then someone else. You can take a strong lease and finance the tenant improvements. Not knowing any more about the building, neighborhood or the market, that is about as far as I can go.

ray

Unusual Deal - HELP!!! - Posted by Rich

Posted by Rich on December 09, 1999 at 11:37:14:

Here’s the deal. I have someone interested in buying into a large commercial property (I’ve talked about in past notes). He’s interested in using part of the basement for storage and part of the 2nd floor for a dance studio (his wife teaches). Since the property is in my and my wife’s name, do I want to create a LLC? Since I was able to purchase the property at a good price. . . should I not reward myself by asking more than half of my purchase price? Should I create limited partnership? I’m meeting with this person this afternoon to do a second walk through. Anyone that’s experienced in this sort of deal, please respond.
Thanks. -Rich
p.s. - I can’t reach my attorney (what else is new), so I need your expert opinions!