Try the lower sale price by itself first. Then if he balks, only then offer a lower than market rental rate. Even so, make sure the lease terms include built in rental rate increases. If you lower the rental rate you are affecting the property’s worth-which may play into the equation as far as obtaining a loan for the property.
Make sure the lease you draw up is a NNN lease agreement, then you won’t have to worry about the property tax rate anyway-this is hugely important!!!
Lower Purchase Price & Lower Lease Cost - Posted by Larry Bohen
Posted by Larry Bohen on April 19, 2007 at 13:11:38:
I am considering the purchase of an office building in Vermont and am thinking of making an offer with a much lower sale price to the current owner / occupant but also offering a long term lease cost lower than market to offset the lower purchase price.
My benefits in such a deal are a lower down payment, lower property transfer tax and lower income taxes.
I would appreciate your thoughts on the above strategy and any advice you care to offer.