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Updated over 10 years ago, 05/09/2014

User Stats

2
Posts
1
Votes
Chris Olsen
  • Logan, UT
1
Votes |
2
Posts

Please share your thoughts. I feel this is a little fishy. Im new!

Chris Olsen
  • Logan, UT
Posted

So I've been wanting to get into commercial real estate and finally found a good deal on a office building and it was going to have two tenants leasing from me. Everything has been going good with it and about two weeks away from the due diligence deadline. Heres my worry though. At first lets say the tenants names were Tenant 1 and Tenant 2. We set up the contract for Tenant 1 and Tenant 2. Anyways today I come to find out that not only on the investment analysis did a name change but also on the lease agreements. Now its not Tenant 1 and Tenant 2 but now there is Tenant 1 and a new Tenant which we'll just call Tenant 3. Tenant 3 is a name that had not been discussed with me at all from any point in this process and my banker has told me that last time he looked at Tenant 3's financials they are not very good and this Tenant 3 is partner with Tenant 1 and they're trying to Sub lease to the original Tenant 2. I don't know if that makes sense but I called the realtor and said well if we keep going along with this we need to re arrange the contract so the names are Tenant 1 and Tenant 3 but he says we don't need to do this. My banker seems very concerned now. I just feel like this realtor and the seller are trying to slide something past me. Basically if Tenant 3 left during their lease according to their previous financials which I have yet to see there is nothing you could go after. I right now just feel like they are trying to change too many things on me last minute. Hope this makes sense and hope I can get some help. Probably going to back out of this deal and look for a new one as the contract stated it was between Tenant 1 and Tenant 2 not 1 & 3.

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