Lease Option or Walk - Posted by Tom Chenoweth

Real Estate Investing Self Storages
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Posted by SteveO on March 05, 2007 at 12:31:04:

Is there a chance that you could work a good price on this deal? If so, this seems like an ideal candidate for a lease/option. Getting the seller to agree is another story. Hopefully, he is already aware of the difficulties one might have while trying to obtain financing.

Your experience in storage units is important. You will need to do a lot of homework to insure a reasonably accurate proforma for yourself.

A lease/option can take a lot of forms.

Your goals could be:

  • to get control with as little of your own money to start
  • get a payment from the seller that makes sense while you are building stronger financials
  • stay in complete control of the asset for the period of time that it takes to get the property into a position where financing can take place
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Lease Option or Walk - Posted by Tom Chenoweth

Posted by Tom Chenoweth on March 03, 2007 at 13:33:10:

I am looking at several Self Storage Facilities and one that is interesting has a twist. The current owner has not acurately reported the income on his taxes and has bad records. Rather than walk away from the deal, does it make sense to lease option for a year to establish to lenders a true income/expense or should I just walk. Not totally sure how to do a lease-option on commercial but would like to hear any insights. Thanks!

Tom