Missouri Motel- Due Dilligence
I am trying to purchase a 30-unit motel in Missouri. The owner is reluctant and does not want to release any offical documents (i.e. tax filings, p&l statements, etc.) without the signing of a valid sale agreement.
There is no way I am going to sign a sale agreement for a property that I am not 100% sure about.
I have told the seller that I need the documents but he wants the paperwork signed.
My partner (a mortgage broker) also needs the docs to put together a business plan.
I understand his reluctancy, but how do I get him to understand this isnt going to work without the docs.
Thanks,
Jorgan Cattin
You give him a Purchase agreement that has a clause that says the offer is subject to his submission to you and your review of the documents. Both provisions will need completion dates but if you don't like the numbers then you walk.
listen to c/k's advice it's the way to go. it gives you a chance to explore his books and a way out if you don't like what you see.......kenmax