Page 145 -

TRUMP UNIVERSITY WEALTH BUILDING 101

problems. Separate minor issues from the real catastrophes. When too many
add up, you may need to renegotiate the deal.

Step 8: Close the Deal

The whole deal can get bogged down in the details by the time you compete
your due diligence and the actual closing transpires. The amount of paper-
work involved in the deal still blows my mind. I was at a closing last year that
involved an SBA-backed loan, and I think there was over a foot-high pile of
paper for the buyer to sign.
Get familiar with the paperwork. Your attorney will play a very important
role in getting all of the documents together.

Lease Assignments

This document provides written consent from the landlord that he will
assign the lease to you. The landlord may also want to see your résumé and

financial statement. Landlords usually don’t move too quickly on these

documents, so be very specific about your targeted closing date. In deals
where a seller remains on the lease as a guarantor for the remainder of the
term, you may be expected to provide indemnification. Finally, be prepared

for miscellaneous fees ( landlord’s out-of-pocket expenses, attorney fees,
and offi ce time).

Promissory Note

This is your personal guarantee to repay the debt to the lender. There is no need
for you to pledge any personal assets or security if there is a note to the seller.
Other provisions include the right to:

• Pay off the entire amount at any time without penalty.
• Twice a year, make a lump-sum payment toward the principal, without
penalty.
• Begin payments 30 to 180 days after the closing date.

• Negotiate, without interest, the first three to six months, to pay the
principal payment only.
• “Set off” for any liabilities that may arise after the closing (e.g., the
seller fails to pay a utility bill).

122

8/23/07 3:17:30 PM
c12.indd 122 8/23/07 3:17:30 PM
c12.indd 122