Example: Purchasing a Hotel / Pub, No Money Down.

Discussion in 'Commercial Property' started by 2927, 2nd Oct, 2015.

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  1. BennEznElle

    BennEznElle Well-Known Member

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    Agreed. You certainly haven't done yourself any favours. I know its not a popularity contest but I think you have lost the respect of a lot of people already.

    There's clearly interest from people otherwise we wouldn't be posting, but you have fluffed around for almost a week, without providing any substance to your initial post, other than the link you posted this morning.

    We have had 3 pages of off topic conversation all because you haven't provided the information that you suggested you would. Nobody is asking for a full breakdown of all your property success stories but don't release the trailer if you are never going to make the movie.
     
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  2. Waldo

    Waldo Well-Known Member

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    Why not wait until you have time before posting an entire thread?

    And yet you have time to discuss google versus bing. Interesting.

    Probably a good thing that your SOE is poor - the amount of negative publicity you are generating is probably staggering. I've never seen someone (excluding obvious trolls) try so hard to get so many people offside so quickly.
     
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  3. See Change

    See Change Well-Known Member

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    I think he's working on the principle that there's no such thing as bad publicity .

    Cliff
     
    Last edited: 7th Oct, 2015
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  4. 2927

    2927 Well-Known Member

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    197667_107203832711790_2843256_n.jpeg 285494_107203006045206_2153960_n.jpeg 253207_107200702712103_1485566_n.jpeg iblkfab.jpeg


    206431_107204049378435_6097088_n.jpeg Otematata Lakes Hotel for sale, Otematata, Canterbury NZ 2.jpeg


    I'll leave the gabble to the the "Realm of 12", they can chat among themselves. Finally got all the pics and related info. This Hotel was one that we looked at in New Zealand, after careful consideration, it (we) decided not to go ahead. The attached pics will give you an idea of the pub itself. There are more pics, which really show the condition and it's age.
     

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    Last edited: 8th Oct, 2015
  5. 2927

    2927 Well-Known Member

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    Diagram Sheet showing topographical view and boundary lines.
     

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  6. 2927

    2927 Well-Known Member

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    The reference for the Hotel is OT4C/980
     

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  7. 2927

    2927 Well-Known Member

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    SO323871 is the hotel site. Secs 1 and 2, to the right are easements which cannot be built on.
     

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  8. 2927

    2927 Well-Known Member

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    These were the set of accounts given to us by the 1st Real Estate Agent, we also obtained another (identical) set from the Accountant, which turned out to be completely false. Items listed were correct, but figures were fudged.
     

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  9. 2927

    2927 Well-Known Member

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    The "Brains Trust" had put together a budget for us, to show that the Hotel was going skywards, unfortunately they didn't match with the P&L that we had obtained from the IRD*.

    *IRD is the Inland Revenue Dept of NZ. Same as the ATO in Aus.
     

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  10. 2927

    2927 Well-Known Member

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    The Chattels list from the Hotel.
     

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  11. 2927

    2927 Well-Known Member

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    Sales Literature provided by Colliers International. They were the appointed selling agent for the Hotel by the administrator. As you can see from the pics in the brochure, the Hotel was in a run down state. In the winter time, you will be lucky to get 10 people in the main bar, 3 of them being bar staff.
     

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  12. 2927

    2927 Well-Known Member

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    I have already uploaded a document outlining the legalities of a "put and call" option. Although some may still find it daunting and confusing. Before explaining, what a "put and call option agreement" is, you need to understand what a “contract” is. In law a contract is formed when certain things happen. Two of the most important things that must happen, is that there must be an offer by one party and an acceptance by the other. Without this there is no contract. There are other ingredients in a contract also such as:
    • intention to create a legal relationship
    • certainty of terms
    • consideration
    For the purposes of this thread, the important two ingredients are:
    • offer and
    • acceptance
    A put and call option agreement uses this basic contract law, to ensure that a contract does not come into existence, until some future time. This is a good example of how very old law can be used, in innovative ways, even today.

    Generally a put and call option agreement works as follows:

    I make an offer to you, to buy your property, or any other asset, but, I say that my offer is not capable of acceptance by you, until some future time. Clearly we do not have a contract. Although I have made an offer, you cannot accept that offer. It is quite possible, that you might walk away from the offer and never accept it. There is no obligation upon you, to accept my offer, to buy your property.

    The offer can also be put the other way around. In the above offer, I offer to buy your home. Instead the offer may be an offer from you, to sell your home. Again the offer can be made in such a way, that the offer cannot be accepted by me, the buyer, until some future time or upon some future event.

    In each case the person receiving the offer can walk away.

    The situation becomes interesting, when the two offers are put together. The effect then, is that I have given an offers to buy and you have given an offer to sell. Neither one of us, can compel the other to accept the offer made. However both of us maybe in a position at some future time to accept that offer. If the dates are arranged properly, I know that if you do not accept my offer to buy, then all is not lost, I can still make the deal happen as I can, if I want to, accept your offer to sell. If therefore, either one of us, wants the deal to happen then it must. A contract will only come into existence if one of the parties accepts the offer.

    In other words, both of the parties are able at some point to force the deal. If the first offer is not accepted then the second offer may be. One offer is called the put option and the other is called the call option.

    The put and call option is useful, when for legal or taxation reasons, a person wants to ensure that they can force a deal to occur, but, do not want a contract to come into existence until some later time. Why would this be important? A common example of this is the delaying of capital gains tax for one year, or the delaying of Duty.

    If I were to sign a contract for the sale of my commercial property on 1 June 2015, then I would incur capital gains tax for the 2015 financial year. I do want to make sure that I can tie down the buyer who might change his / her mind if I wait another 30 days but, I made a large income this year and I would prefer to pay the capital gains tax next year, as I know that my income will be less next year and so the tax rate will be in a lower bracket. The answer, is to use a put and call option that will bind the parties, but delay the contract until some time after 30 June.

    The term “Put and Call Option” is just a label. These options also go by other names. Always beware of labels. You must ensure that the agreement has the desired effect, this is of course far more important than the label given to the document. The drafting of these arrangements requires care and precision.
     
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  13. 2927

    2927 Well-Known Member

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    page1.jpeg

    LIM or Land Information Memorandum. This is one of the more important documents, which will be the basis of your option contract.

    LIM Page 1 of 26
     
    Last edited: 8th Oct, 2015
  14. 2927

    2927 Well-Known Member

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    LIM page 2 of 26
     

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  15. 2927

    2927 Well-Known Member

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    LIM page 3 of 26
     

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  16. 2927

    2927 Well-Known Member

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    LIM page 4 of 26
     

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  17. 2927

    2927 Well-Known Member

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    LIM page 5 of 26
     

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  18. 2927

    2927 Well-Known Member

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    LIM page 6 of 26
     

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  19. 2927

    2927 Well-Known Member

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    LIM page 7 of 26
     

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  20. 2927

    2927 Well-Known Member

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    LIM page 8 of 26
     

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