My Background Continued... 6

Well CoVid 19 hit and we probably lost 2-3 months trying to figure out what a reasonable response was.   At work, I went from a regular 8-4pm office job managing other people's property to working from home.  It took a lot of adjusting and workarounds to get how to apply property rules and regulations.  It was interesting having meetings by proxy and video/or phone when the a property did not have a bylaw that actually permitted it.   Even fire inspections that required inspectors to go into suites were delayed at least 6 months while they came up with the proper protocols. 

Step 6

During this phase, we did a lot of research on the actual property and how much was owed (in mortgages) and other information regarding the property, including strata meeting minutes, fees, insurance, taxes, the current lease, a background check on the tenant... all the regular due diligence in advance. 

Essentially we wanted to make sure that there was enough equity in the property that we could comfortably purchase the property and the seller would still have some cash left over, AND that the property would not be a drain on cash for the investors. We discovered there should be plenty of equity left over so we proceeded and the cash flow was acceptable, so we proceeded with

Step 7 We worked on a shareholder's agreement.  

Step 8, The investors had to incorporate a new company.  With the overabundance of caution in forming a new company we actually did 9 revisions of the articles.   We did a lot of thinking as to how our company in Kansas had failed and tried to put into the articles and shareholder's agreement what was necessary for the company to sell a warehouse.  We also discussed what would happen if one or more partners wanted to sell. (right of first refusal) and what to do if we had a bonafide offer on the warehouse and one or more partners did not want to sell.  

Step 9.  As the buyers and seller knew each other, we did not use an agent and had our Lawyer prepare the purchase documents.   I was assigned to notify the Seller in the first week of September and we planned to close at the end of September, 2020.