Posted by Tom-FL on December 07, 2004 at 18:28:54:
Yep. It’s a lot better pitch than asking that it be 100% rented before paying rent. Many buildings are never 100% rented. Come to think of it … Hmmmm
Why should I Lease Option a vacant Building? - Posted by Lefko
Posted by Lefko on December 06, 2004 at 16:24:27:
Seller has verbally accepted an offer to do a lease option of his property to me. We have verbally agreed on the option fee, the strike price, and the monthly rent. But the problem is that the building is vacant right now.
How can I structure this transaction so that my obligation to pay rent to seller starts ONLY AFTER I have fullly rented out the building? Obviously I do not want to pay the rent out of my own pocket. I want to pay the rent from the rent that I will collect from my sub-tenants. How do I structure this deal?
Re: Why should I Lease Option a vacant Building? - Posted by Tom-FL
Posted by Tom-FL on December 06, 2004 at 20:22:29:
– my obligation to pay rent to seller starts ONLY AFTER I have fullly rented out the building –
Asking for a lot, don’t you think? That could take decades. You are asking the seller to rely on the marketing abilities of a complete stranger.
Perhaps a short deferment of 90 to 120 days would be more appropriate.
Re: Why should I Lease Option a vacant Building? - Posted by Lefko
Posted by Lefko on December 06, 2004 at 22:24:29:
Tom…do you mean that I could negotiate to be in possession, but not be required to pay rent for 90 to 120 days? Is that what you mean by the deferment?