How do I sell the night club?

[Mousehugs]

My brother died last month in an auto accident. He has owned a bar/nightclub for about 5 years and sold it this last summer contract for deed.

Unfortunately, the new owners changed everything, upped the prices and fired most of the existing staff and started with new employees. They have run the business into the ground and defaulted on the contract for deed as well as their bank loans.

The business is in foreclosure and will go to Auction on March 7th. They have the business up for sale for 695K. They paid 650K. The buidling and land, which is lake front property, is worth 595K before considering the business.

I thought I should start the contract for deed foreclosure now so that the estate owns the bar at the time of the bank's auction and then put it up for sale at $495K. This will pay off the bank which is about 300K I believe after their legal expenses.

I have a real estate agent with what he says is a guaranteed buyer but wants double the commission and then some.

I wouldn't be able to keep the bar open after I take it back. I may have an issue where the bank could consider it abandonded and then I think I'd only have 5 weeks to find a buyer or the bank can take it back.

Any thoughts would help greatly. I'm scared. I'd just let it go, but he has a daughter and she should really get the equity from the property.

Thanks for your time.

[The Event Guy]

www.bizbuy.com you could place an ad in the paper, or even go to a broker who specializes in nightclub real estate.

sorry to hear, good luck.

[ca. club owner]

Wow.. Im so sorry to hear about your brother.. As for the real-estate guy tring to take advantage of the ordeal. If he has a true buyer... Go get you a real-estate lawyer and let him handle it. Asking for double and then some is crazy.. Let the lawyer deal with the guy. That way your covered. And it will be worth it in the long run. Good Luck hope it all works out for the better...

[The Prof]

Wow! is right. I have seen many deals like this. First thing first: GET A LAWYER and get the details of the land contract on the record. Was the original contract for land/business or just business. Find out if the current owner of the bar took out loans against the building, technically they are not title holders and did not have the right to mortage against the property. You shouldn't have to lose your building for there shortcomings. GET A LAWYER. My 2 cents!!!!!!!

[David]

Sorry to hear about your brother. This is a very good example for all of you out there to have your estate and all property's protected against these types of tragedies.

I'm not an attorney but, when you sell something C4D or Contract for Deed, do you remain the owner on all legal documents? How can the bank make you sell it or auction it off because the other buyers defaulted?

Maybe, you already know the answers to these questions.

I had a friend that owned and ran a very successful bar for over thirty years. One day he decided that he didn't want to be in the business and wanted to sell it out right. His kids talked him out of it and he sold it C4D to a couple of guys. These two didn't make good on their payments to him or to the bank where they had borrowed money to make improvements to the building. So, he took it back and sold it again C4D. Again this happened and he got it back. He sold it out right the third time around and it went out of business again.

Just thought that I'd let you know what I know about C4D programs.