The person who provides a quit-claim deed makes no warranty or representation that they actually own anything.
Generally the quit-claim deed is used in relation to real estate. Since you state ther is no real estate involved why would you want to use this document?
Are you the buyer or seller?
Great point, thats why I needed some input...
I am the buyer... Is there any such document or deed structured to allow another entity to take control of an establishment or business even though real estate is not part of the transfer itself?
And yes, I still want to acquire it even without RE. It has excellent cashflow and trackrecord with additional benefits too. Thaks for the response...
What is the structure of the business currently?
How you buy the business is important to consider and will dictate the documents used to consumate the transfer.
Yes I understand that. My other posting of creative financing in business explains some of the details. But my concern is to satisfy the owner by getting cash in his hands quickly by turning around and acquiring a loan against the business asap.
Theoritically it seems very easy, but as you say, it depends on how its structured for purchase.
I based my question on a site I visited that offers quit claims for all staates and noticed a deed from one corporation to another but it didn`t offer details as whether real estate was a factor.
I saw your related post (creative financing).
How much time do you have to put this together?
Do you have any agreement in place with the current owner
Is the business currently a corporation/ sole proprietor/ or?
As for the structure of the business if you mean physical, its a hospitality retail outlet in a shopping area so it has a monthly rent on a lease it pays out.
The specs are ...
1.Owner is asking $375,000. 2.Gross annual is $735,000. 3.Net annual is $200,000. 4.Estimated value at $410,000. 5.No real estate. 6.He will take $350,000 cash today. 7.Business is completely free and clear.
As for time... the sooner the better. In my profession, you don`t come across deals like this, but once in a lifetime.
I`ve told him that I am very interested and he did agree to take the cash tomorrow thats 25,000 less. Even at 350,000, a business pulling in 735,000 in gross annual is unheard of, so it won`t be long before someone comes along with a better financial position and sees the same opportunity.
I`m not sure at this time how his company is structured, although his broker did say he has another business he wants to focus more on, and this one is taking to much of his time away from his other business.
At this point I think we should move "off line" if we are going to delve into the details of your specific situation/needs.
You can reach me at Robert@bizgrowthmasters.com
You need a purchase agreement that spells out a number of items. This needs to be thought through. How you allocate the purchase price will matter as well.
My two cents.