What can I do about this horrible situation?

Several months ago, my wife and I sought to buy a particular large-format print shop. We share a common tax lady with the sellers. The tax lady knows that their business has become "quite a little cash cow" since they had started it 23 years ago. They own their enormous homes, vehicles and all the fun toys with almost no debt. In their business, they've paid cash for almost everything, including one of the two buildings. And although they enjoy a reputation for quality work, they have basically stopped working it. The tax lady would have snapped it up herself, except that she is preoccupied with her own businesses.

Since my wife and I have never bought a business before and the sellers have never sold one, we asked our tax lady to recommend a business broker for us. She suggested her former neighbor, John K______, of S______ Realtors, to moderate this transaction. He had us sign a dual-agency agreement, stating emphatically that he would represent both us fairly and professionally...

Nothing could be farther from the truth.

Since my wife and I have only had experience with residential real estate lending, we had no idea how much time was needed for a business escrow involving an SBA loan. John, the self-proclaimed expert, actually asked us how long we wanted it to be! We had no idea. 30 days? 45 days? We'd only had experience with residential real estate investing. Without informing us that SBA loans typically take six months or more, he drafted a 45-day escrow for us to sign. We did. And we put down $25K...

When my wife and I asked him to recommend a lender, he would not. Naively, we suggested a bank that has done a fair amount of residential lending for us. Only later did we find out how much John pressured (and outright harassed!) their SBA lending department to do the loan quickly. Wisely, they slowed down to check the details. The price was rather low for a large-format printer (the sellers were glad that we wanted to own/operate the business, just as their family had), but ultimately the bank declined due to low sales for the current year (the three years before had been above $1M and growing). But 2004's YTD (at the end of July) was only $490K. The bank suggested that we ask a lower price for the business. John urged us to make an outside agreement with the sellers (keeping it secret from the bank) to "carry back" a private loan for the difference. It made us very uncomfortable that John wanted us to deceive our own bank.

When my wife and I approached the next lender, it became clear that there was a big discrepancy between the sales figures John had prepared and the tax returns that the sellers filed. During that loan application process, our tax lady actually redid the sellers' books, and amended/resubmitted their latest tax return (and they paid a lot more!). During this time, John called us several times daily, pressuring us to collateralize everything, including our primary residence. But this second bank also declined, stating that it would require an enormous effort to replace abandoned customers. And they informed us that SBA loans usually take several months to do. Meanwhile, John harshly criticized our business plan (to which he had contributed nothing) and questioned our creditworthiness (our personal fico scores are 650 and 790) to the sellers.

Nevertheless, I approached a third lender with continued enthusiasm and helpful (large print) ideas for improving the look of the bank itself. However, I warned them that our "dual-agency" broker was a notorious pest who would undoubtedly harass them, if given the chance. We instructed John not to call us more than once a day, and not to raise his voice or repeat himself endlessly when he did. Then he began to pressure us to remove our loan contingency. After we had submitted everything to this bank, we left to enjoy a quiet holiday weekend in the mountains. When we did not return his calls for those three days, John was angry and threatened to "kill the deal." And sure enough, he urged the sellers to issue a 24-hour notice to perform. We reminded him that we'd performed our part, and were just waiting for the bank's decision. Also, we pointed out that the CARS form he used states that at least 48 hours notice must be given. When they expressed doubts about the 2004 sales figures, we recognized that John had indeed killed the deal.

Yet, since John was brought into the deal to represent the sellers and us exclusively, I was somewhat surprised to learn that he now has the sellers' listing for their business. John abandoned us. He is no longer acting as a dual agent. And he set the price higher than what my wife and I had agreed. Apparently, he betrayed our dream for a bigger commission. But what really irks me is how he asked that escrow fees be deducted from our refund...

(edited to remove John's identification)

hi

for a normal answer you should sue john. all three parties signed an agreement. i dont know if the agreement state any clause that if one parties broke it the is penalties. or what not.

i would say get back your downpayment. and cancel this deal. try to get back at john.

for an out side the box answer then it will be the following.

1)from the start this deal is fishy. i mean really fishy. i personally will never ever consider the deal, if the person who told me the deal that if he or she had the money he or she would have get it for himself or herself. this is trick number one in the conman's hand book. it is like telling you that i have a friend that has a nice rolex but he needed money and want to sell it. and i said to you i would have bought it if i need another watch. and then you thinking that if i am so interested then it must be real. bam the oldest trick in the book.

2)the tax lady is very unprofessional. first she disclose other peoples wealth to you. that is a privacy issue. and then because she also know you and do your taxes , she knows how much assets and money you have. thus introduce you to the person who wants to sell the business. i mean dont you see that this lady used her advantage to find the best person to buy her friends business. she could look up all herr client and decide who she want to tell. and you happens to be one of them.

3) she also introduce you to john. so here comes the problem. my rule: never enter a deal when you yourself is the only one on your side of the deal. john and the seller is both the tax payer friend. so 3 againts one. this is really fishy if you ask me.

4) john is very unprofessional also. a normal professional wont call you more than 2-3 times a week no matter how urgent it is. just protocal. you dont see your lawyer call you everyday let alone a few times a day.

5) you should not have use john the first place. you should go to the bank and tell them about the deal. because the bank do so many similar transaction everyday. the bank can refer you to someone who is more qualified and some one who they think can be trustable. plus this make the process of getting aloan more easy. because the bank feel more comfatable dealing with some one they known, instead with some one who look like saddam hussein and makes death treat to the bank and rushing things. i dont want saddam calling me everyday.hehehe just kidding . or you can talk to the lawyer before you consider using john. same situation with the bank lawyers for the most times will know someone who is in the same line of work that john do and can reccomend that person to you.

6) a deal like this all boils down to the bank. so if it was me i always approach the bank first and see what is needed and so on. it is simple common sense. it is like if you want to go to england for holidays. you dont pack and buy tickets and everything else before you go to the embassy to get a passport or a visa. you always get those first before you plan your holiday.

7)the seller itself is fishy. reason why would someone want to sell its business if he is making that much money a year?? that for me is really fishy and i wont ever think about the deal . then there is a decrease of business. how do you drop to 402,000 from more than 1 million dollars of business????
in less than one year???? something must be wrong here. obviously the bank uncover something. if the bank dont want it, you shouldnt want it. they are professional and you are not. they do this everyday and this is your first time.

a) if there is a decrease of business that only means some of the regular customer are gone. losing customer is the worst thing that can happen. so something is causing the problem. if you are unable to retain customer then it is much harder to find new customer or attract new customer. something is wrong here.

b) is there another competitor near by. maybe they are new or cheaper. and even have better customer service. maybe the seller has back customer service and the customer rather pay more just to get better customer service.

c) how is the machinery? old. is it lease???
if not lease then dont even consider the deal. because if it is last years machine then it is old. most last year machine can do this years model job. especially the digital ones. that is why big company like staples lease their machine because they get to change it every year.

d)maybe the business place is being rezone. and the business has to move.or something like that nature.

okay i lost my thought here

8) so here is the scam. a seller want to sell his unsaveable business and he had this friend that can look up for posible suckers(dont mean you but anyone) that have the capabilities to buy his something smell fishy business. so this tax lady look it up(which is unprofessional, because she is disclosing privacy info to others) and then they get john who is on their side and try to push this thruogh fast. i mean if a person of john professional wont he know that it takes at least 6 months to get soemthing like that done. but no he sign a 45 days. so that is already fishy. so john push and push. and now after a while but avail the gang of three decided to move on down the list to the next person. because obviously you can't get a loan anytime soon or has the money for it. so they will find the nest person that they think they can get him or she to buy based on the info that the tax lady provide. and then the same old skit was perform again. they dont have to worry about you because after 45 days they are free. so i suggest you sue them or get them to the athorities before that 45 day end.

my advise is DONT CONSIDER THE DEAL ANYMORE. the deal is so fishy i can smell it from here. why buy a business if you can get a loan easily and start your own. plus everything is new and all customer are fresh. like buying a new car. why buy an old car and have to fix everything. i mean old business mean old customer that still have grudge on the old owner. saVE YORSELF THE TROUBLE PLEASE.

now please got report it or talk to a professional about htis like a lawyer or someone. you can get john because you guys sign an agreement. and as long as youreport it before the 45 days end you can still do something really bad to john.

also because the tax lady is no professional and are disclosing your info to someone else. you can also sue her and get her out of business. because i think before you ge her to do your taxes there is an agreement that there will be privacy. obviously she is not doing that. so sue her .

the seller is in the clear for now. so dont worry about it.

so before you tell them you want to cancel this deal go talk to some one.like a lawyer. becaus eif you tell them you want out then you are the one who is breaking the agreement before 45 days. you want to get john to write something solid that state he break the deal first. trick him or what ever.

SO MAIN THING IS FORGET ABOUT THE DEAL AND START LOOKING INTO LEGAL ACTION AGAINST JOHN AND THE TAX LADY. AND YOU WILL PROBABLY END UP MAKING A LOT OF MONEY DOING IT. the deals is fishy and so dont even think about buying the business anymore. start thinking about how to get out of this situation. and sue people. and make some money for you damage and time.

the above are all just my opinion eventhough the deal is really fish. so follow with due diligence.
thanks hope this helps.
thanks
ah
ps please dont hold any account against me for this . i am just giving my opinion.
also sorry for the mispealling and so on.

Here's his inflated listing.

this is great that mean they break the deal first . you can use this add to sue them.

they have sign with you an agreement for 45 days and 45 days have not pass so you can legally sue them .

this is great because it is not only john that brioke the deal the seller too. so you can sue both of them.

if i were you i will sue. i probably even make off with alot of money.

trust me. i am no lawyer but i am sure you can sue. because they broke the agreement first.

talk to a lawyer first thing on monday. dont waste time.

also wont franchising kinko be cheaper?
plus if you franchise there is support from big brother.

anyway please go sue them. you really will make a huge chunk of money of them for this.
anyway keep us up to date.
thanks
the above are just my opinion.
i will not be held responsible for it.


sorry for the bad english and mispelling.

so it is digital. then dont even bother to buy from them.

you can start one cheaper. way way cheaper. because you will not buy the machine just lease them. and change for new model every other year. because the digital equipment change so fast. buying your own machine is not a good idea.

kinko and staples lease their machine. and they get new model every year.

plus if there is a problem the people who lease you the machine will come and fix it straight up.
if it was your own machine you will probably take along time and alot of money to fix it.

the digital board break down very often. because they get over used. so getting lease means this is cover by the company that lease you the machine so they can come and change that very same day. and not loose productivity.


this you can trust me. because i used to work for staples for 4 years.

anyway sue them. hehehe

so you sue him yet?

or talk to a lawyer yet?

or started looking for another tax lady? because i dont think she is trustable.

ah well , just checking

Dear John,

I apologize for the Saddam quip that I included at the bottom of my most sincere "What can I do about this horrible situation?" question. Where I have been able to edit my message, I have removed that reference to your physical description. I will refrain from any such parody, since it dilutes the seriousness of my inquiry.

Obviously, my wife and I expect a full refund of all unspent money from escrow. All expenditures that continue to benefit the sellers should be deemed their sole responsibility. And those expenditures that benefit no one should be split. We should not be charged exclusively for anything. Readers everywhere agree.

The remainder of my message is factual and verifiable. It will remain as is. My intention is to rally an advocate to help secure our refund. It is not to slander.

I must ask you to stop including my wife in this matter. She had nothing to do with it. She only learned about it when you called her demanding an apology and retraction. The decision to compose and distribute my inquiry was strictly my own. Leave her alone.

Thanks for reading.

Dear John,

Ever heard of freedom of speech?

Please give him back all his money and quit it.

He can actually report to the police . because what you are doing on the phone is consider a hostile call.

and the police can put you in lock up for 48 hours.
while they investigate it.

and then the court can place a restraining order on you.

so you should just quit it and stop making threat calls to them.

sorry but i think you are not a very professional person.

he nows not only has the right to sue you but also can get the cops on you.

thanks

Hey, my dad is a business broker. PM me and I will give you his information and he would probably be able to give you some advice.

SWiG