All Forum Posts by: Chad Mitchell

Any suggestions on this one?

Look at eforms.com. Free month trial and reasonable prices thereafter. I used their commercial lease template  a few times now. Fairly detailed and allows for you to add any additional terms. 

Chad

I am from S/W Michigan and started my landlording/ real-estate investment experience in October of 2021 by purchasing three buildings in a downtown area of the city I live in.  I financed these buildings with a bank loan, and they hold both retail and apartments.  In November another opportunity developed to purchase an office space building in the same area that included three current commercial tenants.  Because I already had a loan for the first three buildings and used a large portion of my own money as the down payment, I could not get a bank to loan me the money for the office building.  The current owner agreed to a three-year land contract, and I took possess of the building the first of the year.  

A land contract was written by an attorney and signed by both parties.  From what I researched and learned it was a very standard contract.  With the land contract the deed was not signed over to me and still in the previous owner's name unlike when I financed with the bank on the other buildings.  My question is this to those familiar and maybe specific to MI.  There are current agreements between the previous owner and the commercial tenants.  One is month to month, one has two years before expiration, and the other is a crazy lifetime lease for an attorney in the building where his rent will never increase, is already several hundred dollars below market, and he pays no utilities.  

Can someone with experience or knowledge help explain if I can change, modify, or terminate these current leases? I want to make new leases in my LLC's name and as an insured party for each tenant. I told the attorney within the building this. He said a new lease wasn't needed in my name, it would fall under the current lease in the previous owner's name, and I don't trust his opinion. The other buildings that I purchased and financed, I had all of the tenants sign a new lease under my name. Any advice would be greatly appreciated.

Thank you,

Chad Mitchell
                    

I have about 12-15 tenants, both commercial and residential.  I did a bit of research and trials and found Rentec Direct to fit my needs.  The boxes it checked for me were, cost for a small portfolio like mine, bank account sync, tax reports for CPA, ledger for income and expenses, tenant portal, ACH payments, cloud based, and ease of use.  I believe you can try it for free and see if it works for you.  Good luck!

Chad