Saving Money Creatively using First Right of Refusal

[Gary Dezoysa]

I got to talk to a master RE investor recently. He does something I've never heard of---he rents commercial units at 1/2 to 1/3 of the market rate using a first right of refusal. "Mr landlord, keep marketing the place at full rent and give me 30 days to vacate or match, and I will. Its a win-win". He tells me most places he keeps for years.

He does this for another business he runs that needs a lot of local office space but I see no reason why it couldn't work as an arbitrage opportunity.