Note Secured By Retail Shop
I took a call from a lady that wants to sell on a note she is holding on a building which is used as a retail store. Art supplies is the present business.
I would expect to need details as to the lease and the business details as the lease drives the cash flow and therefore the value of the property.
What else might I need to know about?
John
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[ Edited by JohnLocke on Date 05/12/2004 ]
was the note the result of an arms length transaction or did it orginate because the lady didn't want to run the store anymore
The most important question is, assuming the store went bust what could you sell the building for?
I would say 'half an arm' in this case.
Son wants to open store to sell art supplies. Daughter-in-law is to run the store. Note owner gets the note when she buys the building and agrees a note with her son. The note was set up with a collection account so they did some things to make it clean.
Daughter-in-law has a baby and now finds it hard to deal with the store and the new family. Hence they want to or have closed the business.
I did raise with the note seller that I would need info on the business and more or less info from a commercial realtor as to the potential value of the building and as a rental.
The lady is finding this too complicated to deal with. I think she through I would just quickly buy her note and her issue would go away (she no longer likes being a lender to her son). So, at some level this is not a real deal but I am certainly open to learning more about how someone else would handle it.
John