By: Jayson Schwarz LLM
Ok, so you have decided to purchase a commercial building, a restaurant, a dry cleaner, a franchise, a business and you have never owned a business before . . . how and what do I do?
Secondly, make sure you know something about the business you want to go into or the real estate you want to purchase. In other words have some experience. If you do not have any get some!! How? Go work for someone in the industry or a few someones until you get a good idea of what works and what doesn’t. Ask questions, keep notes and read. Yes read! Go to the library, Government publications, the internet and learn about the industry and the business. Research the area if it is real estate based and what is planned for the future. There will be many articles and people to speak to if you look hard enough.
I recommend you find an experienced commercial real estate agent to present the offers, amendments, etc., after they have been drafted by your lawyer, because this professional makes a living ensuring deals close and he will understand all the nuances of the negotiation.
Once these hurdles are overcome identify a target business and study it. Watch the comings and goings. How many people a day go in and out etc. Once you are satisfied get all of the data you need to prepare your offer.
The Offer or Agreement of Purchase and Sale is probably the most important document in the purchase process. Think of it as the blueprint for the deal. It requires a great deal of forethought and planning in order that you get what you think you bought. Your lawyer is the proper person to draft this Offer in order to ensure you are protected.