I don't know where you all are located, but here in Salem, Oregon it is HOT! I'm not a hot weather girl at all, and the upcoming 90-degree weather for the entire next week is really not my cup of tea. Mmmm...now I want some iced tea...
I wanted to make a quick post just to make note of a communication breakdown that happened today. It was no big deal, and no problem to get back on track. Just a reminder to myself and to anyone purchasing a business of the importance of keeping everyone in the loop, whether you think it's your job or not.
Backstory: as part of my purchase deal, the sellers have agreed to hold a "seller carryback note" for a portion of the down payment. What this means is, they will be paying a portion of the "down payment" (to themselves) in order for me to be more easily approved for a bank loan, and then I will owe them for that amount.
A few weeks ago, I received an initial loan approval letter from the SBA, which outlined all aspects of the loan, and included specific terms that would be required for the seller carryback note. These terms include, among other things, that I don't have to make payments to them for the first two years of the loan.
Well, one item on the "Needs" list for my SBA loan officer is a draft copy of the carryback note. Over the weekend, I sent an email to the sellers and the broker requesting this document. They sent it to me today, and guess what, the terms did not comply at all with the terms required by the SBA. I had incorrectly ASSUMED (you know what they say) that the broker was aware of these terms and had informed his clients. Turns out that was not the case.
All it took was a quick email on my end to request the changes, but I fear that the sellers will likely end up paying more to their attorneys to re-draft the note, unfortunately.
Moral of the story: tell all parties involved more than you think they need to know, and keep everyone informed of everything that's going on, rather than assuming they already know.
Here's some topical Zeppelin for your listening pleasure. Please stay cool in this heat.
I wanted to make a quick post just to make note of a communication breakdown that happened today. It was no big deal, and no problem to get back on track. Just a reminder to myself and to anyone purchasing a business of the importance of keeping everyone in the loop, whether you think it's your job or not.
Backstory: as part of my purchase deal, the sellers have agreed to hold a "seller carryback note" for a portion of the down payment. What this means is, they will be paying a portion of the "down payment" (to themselves) in order for me to be more easily approved for a bank loan, and then I will owe them for that amount.
A few weeks ago, I received an initial loan approval letter from the SBA, which outlined all aspects of the loan, and included specific terms that would be required for the seller carryback note. These terms include, among other things, that I don't have to make payments to them for the first two years of the loan.
Well, one item on the "Needs" list for my SBA loan officer is a draft copy of the carryback note. Over the weekend, I sent an email to the sellers and the broker requesting this document. They sent it to me today, and guess what, the terms did not comply at all with the terms required by the SBA. I had incorrectly ASSUMED (you know what they say) that the broker was aware of these terms and had informed his clients. Turns out that was not the case.
All it took was a quick email on my end to request the changes, but I fear that the sellers will likely end up paying more to their attorneys to re-draft the note, unfortunately.
Moral of the story: tell all parties involved more than you think they need to know, and keep everyone informed of everything that's going on, rather than assuming they already know.
Here's some topical Zeppelin for your listening pleasure. Please stay cool in this heat.
Love to you all. Amy