Car Lot Note?
I received a call the other day. Lady has a note on a car lot. Good payment history, rate and all the other basics are there.
Tell me what else I should know about the note before it can be priced.
Business P&L is necessary to judge the credit. Granted the note and the lot are in an individuals name (wife of the business owner)
John
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[ Edited by JohnLocke on Date 05/12/2004 ]
John,
Did I ever tell you the story of how I became the owner of a car lot.
Well it all started with a note that I held and when the payments stopped coming in, now I are one, car lot operator that is.
Since there was a considerable amount of money involved I had no option but to get my DMV license from the state, plus a surety bond, etc. and start operating the car lot myself. Since it was a 'buy here - pay here" lot I quickly learned that done properly there is serious money in operating one.
So if you wind up with the lot, the vehicles etc, remember this "there is an a$$ for every seat" so the vehicles will sell.
John $Cash$ Locke
John,
Good points.
I am definitely not interested in running this business.
I am expecting that it will have a heavy discount to make it safe enough for someone. That said, other then the P&L of the business, is there annoying specific about a car lot that has to be checked? One thing I would not have asked about is the DMV permit.
I know I need to check to see if it is just the land or the actual business that was sold (and therefore is secured by the 'car lot').
At some level this one is more educational for me then anything else. As the lady that called does seem like she could use some help I can at least explain how best to package the note for a buyer. It was her grandparents that originally owned the place and now it has passed to her and her mother plus sister. Sounds like the business has been around a while.
I did note that the borrower on the note is the wife of the lot operator. Funny enough but the seller did not know credit history of the borrower. To be expected at this stage. The note is pretty well seasoned and they seem to know the lot operator as he has been there for a while (rented for years prior to buying).
Anyway, enough of the story.
John
Quote:
On 2004-05-12 11:24, JohnLocke wrote:
John,
Did I ever tell you the story of how I became the owner of a car lot.
Well it all started with a note that I held and when the payments stopped coming in, now I are one, car lot operator that is.
Since there was a considerable amount of money involved I had no option but to get my DMV license from the state, plus a surety bond, etc. and start operating the car lot myself. Since it was a 'buy here - pay here" lot I quickly learned that done properly there is serious money in operating one.
So if you wind up with the lot, the vehicles etc, remember this "there is an a$$ for every seat" so the vehicles will sell.
John $Cash$ Locke
John,
Check to see what is tied into the note, unless you want to buy a job, then make sure the business is separated from the real estate.
John $Cash$ Locke
check what the colateral on the note is, is there a personal guarentee, back taxes, other senior liens.
If you know find out if there are any hazmat issues on the site like they just dumped used oil on the back lot.
what's the zoning and what else could be put there.