Make a Free Appointment, 30 minute Business Consultation.

We advise with fast, smart resolutions before and after the occurrence regarding, Applying for Restaurant Alcohol Licensing, general retail Business Concerns, Restaurant, Market, Bar, Sales and Acquisitions, Remodeling permit inspections and situations. Fast Health Department pre-inspection for A Code Compliance prior to inspections, etc.

We prioritizing in building strong, long-lasting relationships with Restaurant Business Owners, Investors, Commercial Property Owners, Financially Qualified Buyers.

Call Office (M) 310-663-3521

8am to 6pm Mon-Sun

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EXAMPLES

DO IT NOW SERVICE-Brief

  1. PRODOCOL: Are work involves disclosing transparently (as fast as possible) all the required information that is hidden and or not visible.
  2. RESTAURANT ALCOHOL LICENSING: We work conjunction with CA. STATE Alcohol Beverage Control ABC Licensing Restaurants for safe, public alcohol consumption.
  3. RESTAURANT HEALTH DEPARTMENT PERMITTING: We perform in conjunction with Los Angeles Counties Health Department code compliance Health Department pre-inspections with supervision, prior to setting up appointments for site evaluations with the assigned inspector for permitting and licensing to facilitate the ID.
  4. RESTAURANTS FOR SALE: We Exclusively List Restaurants FOR SALE as asset sales with Key Money or Business Sales.
  5. RESTAURANT LOI AGREEMENTS: We draft customized, detailed, LOI Agreements with comprehendible language for clarity and understanding.
  6. RESTAURANT LEASE NEGOTIATING: We represent the parties fairly, equally, honestly throughout the transaction.
  7. RESTAURANT OWNERS NEEDING TO SELL THEIR HOME: When Restaurant Owners are Selling their Restaurant and moving out of State, as a full service we will additionally exclusively List their Private Home For Sale, set up multiple Open House appointments advertised with the multiple listing service (MLS).
  8. ASSIGNMENT OF LEASE RULE: BUYER CAN NOT DEFAULT ON THE RENT. If the Buyer defaults on the rent, the Seller named as the original guarantor to the assignment will be held liable for any and all past due back rent.
  9. SECURITY DEPOSIT: Prior to the original lease signing, the Buyer is instructed to reimburse the Seller with the security deposit held in trust by the Property Owner.
  10. Our recommendation: The first 12 months of the assignment term the Seller to invest the Security Deposit into an interest bearing, saving account to cover in the event of Buyer Rent Default. This transaction to be outlined in the settlement statement during the sale.

Seller Carry/Buyer Approved:

  1. SELLER CARRY: We negotiate the Note, A 50% deposit, monthly payments with interest, until paid in full.
  2. MAINTAINING WORKING CAPITAL: The Buyer must meet our specifications or financial benchmarks after closing, such as maintaining a minimum amount of working capital or inventory.
  3. OPEN BOOKS: The Monthly POS receipts must remain available to the Seller to spot and correct problems early on.
  4. LEASE: Seller must remain named on the lease during the duration of the note.
  5. LOWER TAXES: The Seller doesn’t pay taxes until the final payment is balanced zero.
  6. NON-NEGOTIABLE: The note is structured as “non-negotiable.”
  7. PURCHASE PRICE: Seller financing sell for 20% to 30% higher.
  8. FAST SALE: Businesses offered with Seller Financing are easier to sell than, all cash.
  9. AMORTIZATION: This refers to paying off debt, in installments, through a fixed repayment schedule. Or, amortization is the process of paying off a loan over a period of time. If the Buyer is paying off a loan in equal installments over the life of the loan the debt is amortized. A majority of the Buyers monthly payment at the beginning of your loan goes to interest, with the remainder going toward the principal. The farther along the Buyer is in paying off the debt, more of the payments goes toward the principal.
  10. BUYER FINANCIALLY VERIFIED: Bank Accounts Showing Liquidity as stated. Credit report. Work related Resume. Selecting a Buyer that will succeed from an operational standpoint. No down payments below 30% of the agreed purchase price. A strong promissory note should be drafted with clauses that directly address non-payment and late payments.
  11. If the buyer is an individual, negotiating to collateralize the Buyer’s personal assets in addition to the assets of the business.
  12. The buyer must maintain working capital, monthly or quarterly financial statements are to be audited by the Seller.
  13. INTEREST RATES: Interest rates charged on promissory notes are 6% to 8%, but the rate can depend on the amount of risk involved. Other factors include Buyer’s credit score, experience, financial position, and amount of the down payment.
  14. SELLERS DECISION: The Seller’s decision regarding how much to finance must make sense from a cash-flow standpoint. EXAMPLE: Lets take The business “Operating profit”. if the “Operating profit” is $100,000 per month, then a note of $70,000 per month won’t make sense. The Operating Profit from the business must cover the amount of the note and also pay the Buyer’s personal expenses. If it can’t, then the deal won’t work.
  15. TYPES OF PROFIT: Gross profit: This is calculated by subtracting the cost of goods sold (COGS) from a business’s revenue. COGS includes expenses directly related to producing or acquiring the goods sold, such as raw materials and labor. Gross profit reveals how efficiently a business manages its production and resource use. Operating profit: Operating profit takes gross profit a step further by subtracting operating expenses. These expenses include wages, rent, utilities, and marketing costs – all the costs associated with running the day-to-day operations of the business. Operating profit provides insights into the profitability of a company’s core operations. Net profit: The bottom line. Net profit, also known as net income or net earnings, represents the final profit a business achieves after all expenses have been deducted from its revenue. This includes not only the cost of goods sold and operating expenses but also non-operating expenses such as interest and taxes. Net profit is often referred to as the “bottom line” because it represents the ultimate financial gain, or loss, after all costs are accounted for. 
  16. LOAN PROCESSOR: A loan processor handles all aspects of collecting, crediting, and disbursing monthly loan payments. As a neutral third party, they simplify the day-to-day management and process of managing loan payments. Using a third party to administer the payments simplifies recordkeeping.
  17. SELLER REMAINS ON THE LEASE: Seller must remain on the lease during the entire period of the note. The Average length of a note is Five years, but it varies from three to seven years. Average down payment is usually 50%, but it varies from 30% to 80%.
  18. BUYER DEFAULT: If the buyer defaults, you will need to take the business back and repossess the lease. Alternatively, the Seller negotiates to take back the lease if the buyer defaults without the Seller remaining on the lease. In this scenario the Seller would not remain on the lease; however, the Seller would retain the ability to take back the lease only in the event of a default by the buyer. Again, this will be addressed by Penthouse Advisors INC.
  19. SELL THE NOTE: Ensure the note can be transferred or assigned to a third party. The Seller can often sell the note at a heavy discount after it has matured for six to 12 months. There are many investors who purchase these notes, which effectively cashes out the Seller.
  20. BUYER BACKGROUND CHECK: An investigation of the Buyer’s public records should be performed to identify any undisclosed arrest records, bankruptcies, corporate records, court records, criminal records, deeds, or divorce filings.
  21. FILING A UCC LIEN: A uniform commercial code (UCC) lien is filed on the assets of the business.  A UCC lien, specifically, is the public record of this security interest, typically filed as a UCC -1 with the Secretary of State’s office. This filing notifies other potential lenders and creditors that the borrower’s assets are already pledged as collateral. This filing gives the lender a “first-position lien” meaning they have the first claim to the collateral in case of default. This filing gives the lender a “first-position lien” meaning they have the first claim to the collateral in case of default.

Get a Free, 15 minute Consultation Appointment.

Call Office (M) 310-663-3521

8am to 6pm Mon-Sun