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Can you explain lease and sale for business?????


When i see merchandise sale.... they write store price
100k , low rent and 10 years lease....

Why 100k....If there is rent .....????????

What about sale.....?????????

. . . and read that lease carefully. Make sure that the landlord is allowing you to assume the lease and get that agreement in writing. Commercial leases can be complex and what is low cost for one occupant could be high for you. Does the rent accelerate from year to year? Is the rent subject to increase if your profits increase? Do you know what the typical utility bills are? Who pays for leasehold improvements? I hope that you are being counseled by a good commercial real estate agent or an attorney.

You are paying $100k for the business, assets and goodwill. The store does not own the building.

You will have to pay the monthly rent to the landlord (which they say is low) and there is 10 years left on the lease of the building.

100k for a store is pretty low. It sounds like their offloading it for the cost of their mortgage and inventory. If your considering buying it to continue current operations look into the revenues and how their trending. then forecast sales over the next 7 to 10 years discounting the revenues by 15% annually. If the value is less than the cost of the store and the lease don't buy into it.

They may be selling the inventory of the store? and then they don't own the building-so there is a rental rate for the building see? If you have an interest ask more questions! of the person handling the property. And good luck! Sometimes it's the "fixtures" which could be cabinets or chairs and desks and phone systems. Get an inventory list and the listing information then you should be able to see a better picture! IF not-Get a COMMERCIAL REALTOR to look it over. NOT RESIDENTIAL - it's not time to let someone who doesn't know that side of the business practice on you! OK?

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