Master Lease Agreement

[Heshel Mangel]

I have heard and understand the basic idea behind the Master Lease Agreement, but for some reason was never able to visualize the picture. I have a property in mind that would be the ideal scenario to use the MLA, just looking for some advice/tips as how to structure it the best way. 

The situation is where the seller couldn't sell before the end of a loan term so had to refinance, and the loan carries a PPP. I know he wants to sell but is locked into the new loan. 

I was thinking to propose that we lock into a purchase option price for when the the PPP goes away, and in the meantime I send him rental payments each month equal to the mortgage (maybe a drop more). 

Does that make sense? Or better to put down some type of down payment? What other kinks should I be aware of? Should I have part of each monthly payment go towards paying down the purchase price (so at least there's some equity by the time that comes around)? 

The investment property is located in Cincinnati, Ohio and is a multi-family investment, trying to utilize creative financing (trying to plug in keywords that people would see). 

Thanks in advance! 

@Joe Fairless @Brandon Turner @Ankit Duggal

[Colby Merrill]

@Heshel Mangel

I highly recommended watching a video on YouTube titled Master Least Agreement for Commercial Real Estate by Commercial Property Advisor. He goes into good detail of the ins and outs of it all.