Learn Commercial Real Estate
A new week, new experiences and new opportunity.
And each week I bring you lessons and information all about Commercial Real Estate Leasing.
We are having a short recap on Letters Of Intents this week.
The Letter of Intent is called several things:
"Letter of Intent - Offer Letter"
"Submitting an Offer"
Remember it is very important to use the dialect and lingo of commercial real estate when speaking and interacting with commercial agents and investors.
Today, I am searching for Cannabis Warehouse space in the Green Zone. How many of you are living in states where Cannabis agriculture is allowed? Hit reply and let me know. I may record my search and upload into YouTube next week.
Let's get into the list of items that need to be covered in your LOI (Letter of Intent) that you will submit to the Landlords agent / Ownership in hopes it will be accepted.
Before that happens you want to make certain you present a good LOI for your client.
One important thing to remember.
Any changes being made to the LOI must be approved by your client before submitting it to the Landlords agent or Ownership.
Now let's get to it!!!
What Must Go Inside Your Letter Of Intent
- Identify You - Company name & address
- Identify the proposed Tenant correctly and detail the correct address of the Tenant has for it for an individual or a corporation.
- Identify and Acknowledge the name address of agent/Ownership
- Carefully identify the address/location of the tenancy including Suite Number /Shop Number/ Bay Number
- Include a Business/Marketing Plan - Ownership likes this
- Provide the exact area of square footage to Lease
- Term of Lease and commencement date (How Many Years is the Lease Proposal for?)
- Options - if any Options to Renew
- Initial annual rent - Annual Rent Increases
- Rent Review basis - When will rent increase
- Rent Abatement - Free Rent
- Tenant Improvements
- First/Last Month Lease Rent Offering
- Security Deposit Offering
- Early Lease Commencement Clause
- Percentage rent if applicable
- Outgoings recovery basis.
- Cleaning charges
- Car Parking (Bay Number, Number of Spaces, Charges)
- Other standing charges
- Usage What type of Use is Permitted there
- Goodwill sharing clause - if any
- Any other items that refer to the deal that your client wants
It takes a while, but once you get the hang of it, it all becomes second nature.
Make sure your client approves before you submit it.
In our Deal Maker Membership you will Learn how to write and submit excellent proposals that get noticed and accepted.
SMALL THINGS MAKE A BIG DIFFERENCE:
Always make sure to go over your Letter of Intent to make sure you have not forgotten anything your client needs or may need.
It will be difficult to resubmit an LOI once it has been approved by the Landlord / Ownership because YOU forgot to add an important item your client needed. OOOOOOH the TYPO - We have to make sure there are no typos in the LOI - this is error that most occurs in my LOI'S and others. It happens to me too. (Sad Face)
So please go over the LOI with more than 3x to triple check correctness.
POINT OF VIEW:
Let's switch our point of view to the Landlord / Ownership of the mindset when Leasing out their Commercial space. What is going on in their minds? And what would be going on in your minds if you were presented with a Letter Of Intent for the Lease of your property?
Take some time to think about this. I want you to imagine what an Owner would do and how an Owner would think.... because Wealth Builders that is where I am attempting to guide you. OWNERSHIP.
Let's consider how the proposal for Lease affects the Landlord and his duties and obligations.
WHAT REMAINS THE SAME
- Everyone wants to feel like they are "getting a good deal"
- He who has the gold makes the rules.
- Due Diligence is the key.
- Writing an excellent proposal takes time and practice.
- The more you write great LOI'S the better you will become.
- Practice makes Permanent
- What can you do to become a better at writing LOI's?
- Listen and Learn before you Lead.
- Don't be afraid to ask the questions.
I also wanted to share I am really big on NFT's and Real Estate. I will be bringing you some basic information about NFT''s and Real Estate next year, so you can have a valuable conversation about it even if you aren't ready yet to dive in.
Knowledge is key.
Please remember to take advantage of this awesome real estate branding course. This is a fun interactive video course that will give you new ideas and eyes on real estate branding and marketing. There are also Lead Generation Tips inside the video course. There are only a few left, so take advantage of your free holiday gift
This isn't only for commercial agents its for any one in business. Understanding branding and how to stand out from the other agents is a must.
Some people asked about putting their address in. Just make up any address, it is the way Shopify has their check out carts set up. Click the photo above to get your gift.
Feel Free to share with others!! The Best is yet to come!
As always have a productive week.
ENGAGE AND CONNECT WITH US. I'd love to hear from you.
ENGAGE AND CONNECT WITH US.
BRING US YOUR QUESTIONS ABOUT LEASING
WE ARE HERE TO HELP
Website address www.LearnCommercialRealEstate.
The best is yet to come,