It is always still a good time to Learn and Grow.
So grab your refreshing beverage and let's dive in.
BTW - my fave beverage is juiced carrots, ginger and lemons over ice.
This week we wrap up our Restaurant Cafe Bar series that we Learned so much about.
What were some of your favourite Take -Aways ?
What I learned most is that I absolutely love sharing and speaking about deals with everyone in our community.
Each week I get lots of calls from You, reaching out to chat, to ask questions about deals and techniques.
You know what has absolutely been confirmed?
That I can literally speak about
Commercial Real Estate Leasing ........
Last week, we went over some of the items that absolutely must be included in the Letter of Intent.
Now it's on to LEASES
What type of Lease structure will the Lease revolve around?
The Lease structure depends on the property type among others things. Yes, we know its RCB space.... but what is the property type?
For example, is there more than one building attached? Remember a few weeks ago we Learned about single Tenant vs. Multi-Tenant properties ?
Well this is part of the reason why, It is all tied together.
What are the Taxes and Insurance and Common area Maintenance charges? How does that work ?
Common Area Maintenance = CAM - Are fees Tenants pay to Landlords to cover overhead cost and expenses associated with the property they are leasing from the Landlord.
These are also sometimes called " Pass Throughs"
5 questions for you and your client to understand before signing a Lease.
- Who is the Tenant?
The business owner is the Tenant. Like any other business restaurants will form a new entity for their restaurant business (a limited liability company, or LLC,) and it will be that entity that is the actual tenant on the restaurant lease.
This is also the entity that you used in the LOI.
If the Tenant is on the lease as their self and this applies if it’s you as the business owners and Tenant.
Putting the business under a person's name will make them personally responsible for all rent and other obligations under the lease.
It’s the same if they or you are a multi-unit operator of different business locations and sign all your leases in the name of the same entity… You and the client are at risk.
Instead they can create new entity for each location. So make sure your Tenant understand when they sign the lease, who is responsible if things don’t work out.
Agents aren’t attorneys and cannot give legal advice, but knowing how to protect your client simply means everything.
- What is the Tenant’s personal obligation on the guaranty?
Regardless of who is signing the Lease an LLC or a person, The Landlord will want a guarantee from an actual human whom they can chat,email, visit, etc.
The Landlord will want an actual human to guarantee the Lease so that if there is a default and something happens they know exactly who to connect with.
This is called a “personal guaranty” this is a really deep subject and will be covered inthe membership, but just know this can make or break a deal.
- Can the Tenant get a liquor license for the space?
If your Tenant signs a Lease without knowing or understand the business permitting process in the city, they could be in big trouble. Make sure they can get a liquor license for the space
Each market has their own local laws on alcohol consumption on premises.
As an agent this is absolutely something you should know.
- When does the Tenant have to start paying rent?
Have you negotiated rent abatement for your client?
Has the Landlord give any free rent?
It is your Tenant and you need to know when they will began actually paying rent.
You would be surprised how many business owners and Tenant's forget their initial rent date.
- What is really the TOTAL amount your Tenant has to pay each month?
Knowing your Tenant will be paying Base Rent, Nets, and Escalations each month/year it's important to clarify the exact amount your Tenant will pay each month.
Before the Tenant gets the keys they will need to obtain and turn in a Business Certificate of Insurance to the Landlord.
Small Things Make Big Difference
The Landlord usually provides the Lease and will write it in their favour - do you know how to protect your client?
Different Point of View as an agent
Tenant Rep - Your position is to always Protecting Your Client. understand and overstanding the action items and Due Diligence needed to make sure they have a great deal.
Landlord Rep- Making sure your Landlord is getting exactly what they need to meet their financial goals.
Making sure you are bringing reliable Tenants into that business space and it isn't just about making a commission.
What Remains The Same
Everyone wants a good deal.
“During a negotiation, it would be wise not to take anything personally. If you leave personalities out of it, you will be able to see opportunities more objectively.” – Brian Koslow
By doing your Due Diligence before hand when assisting your client or yourself is making sure you have completed the Due Diligence methods that always keeps you finding the solutions and put you out ahead of any problems.
By building the proper momentum any necessary pivots will be met with nimble and simple solutions that will allow you to keep going to success of completion. - Divine Katoure
PUT YOURSELF ON THE LEADING EDGE.
PUT YOURSELF ON THE LEASING EDGE
It's Membership TIME!!
JUST KNOW- I AM UNDER PROMISING AND OVER DELIVERING.
What's stopping you from being a bad mamajama Commercial Leasing Agent?
Right now for $149 one time fee and $39.99 a month you can change your life by learning how to realistically earn 6 figures a year in Commercial Leasing
You can make enough money to have freedom with your family and loved ones.
You can finally have weekends off and not be working all night on the weekdays.
You can get control of your future and make real money in Commercial Leasing
The list of benefits are too many too COUNT!!
I will promote the membership for the month of June and Invite everyone to the Live Masterclass coming up the week of June 10th - June 20th - Details to come.
Membership closes June 30th 2021- I will close the membership so I can focus on serving the Wealth Builders Community.
Next membership enrollment will be $349 one time commitment fee and $59.99 per month.
Let's make it happen people!!!
Oh and what we will be working on next month is a SURPRISE!!!
So stay tuned you are going to enjoy next month's Learning content
and as always have fun when you LEARN COMMERCIAL REAL ESTATE
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.com
The best is yet to come,