S.E.C. Real Estate Observer

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“In any business transaction, you must hire professionals”.

In real estate and business transactions, we hire professionals and pay them by the hour. Do you ever consider just picking your attorney’s or CPA’s brain on a few items? Then you write the contracts/legal stuff yourself? With your CPA, do you take the appropriate actions based on your tax knowledge and then audit the records?

We always hire the attorney and the CPA to do their jobs and we pay them in cash. Sure does make sense.

In the past many years I have offered to assist S.E.C.’s and their family members in buying a business. I usually get a couple of phone calls, and then unfortunately, the effort dies off.

I have also tried to tie S.E.C. real estate equity into business purchases. I used a Buyer’s Broker Contingent Fee contract. It didn’t work. The representatives of the sellers wanted verification that the buyers had the cash to buy the business. (No consideration for real estate equities).

Business purchases are much more complex than a real estate purchase. Every business purchase represents a different business and different purchase problems associated with the transaction.

There are no books to read. You need the assistance of a business purchase professional. It can’t bee a contingent fee. You will have to handle it the same way you handle your attorney and CPA costs.

There are very few business brokers who will know enough to serve your needs. The business broker can put together information and sell a business, but they cannot protect against all of the problems and pitfalls in any business purchase. (Besides they are agents for the Seller).

I have purchased many businesses in my life. I have assisted many clients with their purchases. With all my background and experience, I still have to be very careful in every transaction, not to overlook anything. Keep in mind, one overlooked item can, and will, sink your business ship.

If you don’t/can’t hire a professional to assist you – Please do not buy a business!

Please don’t misunderstand; I am not looking for work. I am very busy with my business projects.

Although I have attempted to retire a number of times, I now realize that it is not in the cards. People who work for large corporations dream all of their lives about retirement.

The average business man/woman loves what he/she is doing and has no intention of retiring.

I have no hobbies, I hate old men/retirement groups, golf is for others, and I have always loved to buy and run businesses. I have always been possessed with the purchase of another business.

I don’t have a master plan – I buy them because they are there!