If this is your first motel purchase or if you have not purchased a motel in a long time, this may be of interest to you.
Determining your upper price limit:
Figuring out your upper price limit early in the game is a time-saver because it allows you and your agent to focus only on properties that you are qualified to purchase. This is based largely on the amount of down payment that you have available.
What to look for at a property showing:
Always consider the condition of the property because your final acquisition cost will be the price of the property plus fix-up costs.
Consider the franchise flag, if any.
Put yourself in the motel customer's shoes.
Check other motels in area.
Ask owner to identify room-night demand generators.
Courtesy and ethics when looking at properties:
Ask the agent to schedule appointments. Often the agent can accompany you to the property showing, but it is also common to have the owner meet you at the property to show you rooms and answer technical questions.
Caution: It is almost never in your interest to discuss price with the owner during any showing. Always work through the agent when it comes to negotiations.
Also, it is very bad form, and has led to legal action, when the buyer calls the owner directly or speaks to employees directly without approval of the owner or agent. The reason is that most sellers are extremely nervous that their employees, suppliers or customers may find out the property is for sale prematurely and will then abandon the seller.
Determining the value of the property to you: See our page on Valuation Factors.
Determining what price to offer:
As a rule, first determine what the property is worth to you, and be prepared to pay that amount if necessary. Don't focus too hard on the amount the seller might be making on the transaction; in the final analysis, the seller's profit is completely irrelevant to your purchase decision and success with the property.
Verifying the financial data and other property details:
The financial information should include a couple of years revenue history and expense history for one year. A buyer would like access to all income and expense information for the past three years to gain a comfort level that the property will perform well in the future.
Forms of offers:
Offers are typically made in one of two formats.
A "Letter of Intent" is the less formal document stating the most important terms.
The "Agreement of Sale" or "Contract" is the official legal document that will guide the parties to settlement.
Protection for the buyer:
The buyer usually asks the seller to grant a "Study Period" of approximately 30 days before the buyer makes the final commitment to buy the property. The study period, sometimes called the due-diligence period, is established in writing in the Letter of Intent or Agreement of Sale.
The Deposit:
The deposit accompanying a Letter of Intent or Agreement of Sale is a show of good faith on the part of the buyer that the buyer is serious about the purchase. The deposit is typically held by the real estate company or attorney in a special escrow account.
Making the most of the study period:
Most buyers focus on verification of the past financial performance of the property. Obtaining a punch list from the franchise company is also an important early step. Contracts, if any, with key customer groups should be reviewed with the seller. Study of the current employee situation including current pay scales and length of employment can help you with early decisions about your future staffing. A walk-through inspection is a good idea. Obtaining a copy of the current franchise agreement from the seller can provide a important tool for you when negotiating the re-license terms. Compliance with basic governmental requirements should also be investigated.
Preparing for settlement:
Between the agreement to purchase and final settlement, there are a number of steps to accomplish.
Appraisal of the property.
Environmental inspection.
Finalizing the franchise agreement.
Obtaining insurance.
Surveying the property.
Licenses and permits.
Setting up a bank account.
Credit card accounts.
Corporation documents.
Selecting a settlement company.
Taking inventory.
Settlement day:
At settlement the bank makes the loan to you, the buyer. You then use the loan plus your down payment to buy the property. The seller gives you a deed for the property. The seller then gives you a bill of sale for the furniture, fixtures and equipment and you take over operation of the property. |
狗仔卡
发表于 2007-1-15 11:32:35
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