Wanting information on Commercial Real Estate

[Jeremy Collins]

Hello,

    I am currently working with a friend of mine to open our own retail business.  I have also found that the building we are looking at renting through is up for sale.  I have been thinking of buying it because I feel it is not being managed all that well, first off the owner has yet to answer our letter of intent that we filled out a week ago and our agent gave him until the following Monday 3 days later to answer.  So obviously he is out of town, and is hard to get in touch with.  My problem is, I do not know how to go about doing this deal because it is currently listed with an agent here in town.  I have read the NO to Low money down book By Brandon Turner and I have thought about the MLO, but I have also thought about just a Lease with the Option aspect.  What are your thoughts and can anyone give me any help with this idea.

[Christian Dunlap]

Hi Jeremy, I hope this goes without saying, but you need to get a commerical broker of your own. If you've never done a commercial deal before it's going to be difficult for you to evaluate and master the terms on your first go. I list and lease lower mainly C class commercial properties and most of the tenant's/buyers have no rep and no real ability to negotiate simply because they don't know how the game is played. I cringe at the terms they readily accept, but I have keep my mouth shut since I represent the landlord. The seller will pay your rep's fee so it's not going to cost you anything.