I am currently in talks with a Seller about his business but his net worth is mostly tied to the real estate. He would like to work for a couple more years, before he retires. The Seller has proposed a seller financed transaction with a 20% downpayment. If I buy both the business and real estate, the real estate will be 80% of the proposed transaction. Admittedly, I know very little about real estate transactions, what resources would you recommend? I would like to educate myself about real estate valuations, seller financing and process.
Please note that this transaction is in the U.S.
Recommendations for resources: Real Estate valuation
by a searcher from Babson College - F.W. Olin Graduate School
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One idea to consider if he wants to stay on for a couple more years, is put something called rev protection on the disability plan, so if something happens to him and he cannot work, the provision pays a matching benefit back to the company that equals his disability payment. Since it is taxable income to the company, that part of the premium is tax deductible as a business expense, and protects you in case the owner goes out on disability.....which happens...
This is not buy/sell it's a different concept and is guaranteed issue on the group LTD plan....
This and other ideas exist ....just dm me for the path...