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Trying to sell a business without a long-term lease

Trying to sell a business without a long-term lease. The building was foreclosed and bank-owned. I've been going month-to-month. I believe the bank is willing to give a new long-term lease to someone purchasing my business, but do not want to get into a position where they ask *me* to sign a new long-term lease. advice? How do I approach a sale (do not yet have any offers .. still trying to find a broker and get the business listed) and how do I approach the bank?

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Answers (4)
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Gateway Franchising
Saint Louis County, MO

Vania - approach the bank and ask if they would be willing to enter into a long term lease with whatever purchaser of the business you find. If you're in a commercial building, it's unimaginable that they would not want the building as full as humanly possible for obvious reasons!

The fact that it is a month-to-month lease is likely going to be seen as a good thing, since it will let the new buyer negotiate great terms (particularly in this horrid economy). Just let prospective buyers know up front that the landlord will need a new lease and you'll be fine.

Mar 23, 2012
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I'm about 30 minutes outside Cleveland, Ohio. I have been looking for a broker, but not having much luck. Most broker listings I've seen work with much larger businesses.

Mar 23, 2012
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The BAF Group LLC
MD

Vania, you need to get a Broker - who is also a licensed Real Estate Broker - involved. The fact that the building is a foreclosure property could mean some difficult and different terms will be involved. If it is a multi-tenant retail building, negotiating a lease may not be difficult. But if it is a smaller building with few tenants, the Bank MAY not want to enter into a lease, since it can hinder its efforts to sell the property to a new Buyer. If your business is large enough to warrant the Buyer needing to get a loan, it would be difficult to get the SBA to fund the purchase without a lease. It is a very difficult problem to deal with, since you are balancing a number of issues, here.

You need to interview Brokers that will be willing to and ABLE to deal with all of this. Many are not well versed in all of these issues; GET REFERENCES!!!

Mar 23, 2012
Raymond Bigelow
Blue Ribbon Pet Salon
Owner
Snohomish County, WA

...a good broker will negotiate that for you as well...where is your groom shop located..?

Mar 22, 2012

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