Posted by Jacq on January 31, 2010 at 13:32:11:
I am looking at some apts with 3 occupied out of 14, and maybe only one of those paying regularly. Owner will “finance” with 10% down and wrap the first. Deferred maintenance is about 20% more of the asking price but there will be no income until the units are rehabbed. How to structure that??? Once completed location will make for big jump in value.
Master Lease - Posted by Mike
Posted by Mike on December 13, 2009 at 24:23:15:
Has anyone done a master lease option on commercial properties?
Re: Master Lease - Posted by LC
Posted by LC on December 15, 2009 at 20:02:08:
I’ve never done them but I think a master lease is used by the seller to prop up the cap rate (make the numbers look better) for the property that has had a recent vacancy. My preference as a buyer is to decline the master lease and make an offer based on actual current income.