All Forum Posts by: Georgee Gilbert

In CT we can’t collect anything in advance other than first months rent and security- it’s illegal to collect a year of rent upfront. I don’t know how it is in your state but you might want to check it out.

Anyone who wants to pay a year up front is an automatic dismissal for me.

2nd couple is better

actually, I would go and find 2 new options. Neither of these are ideal.

I would consider reading "Crushing It in Apartments and Commercial Real Estate" by Brian Murray.  It may give you some helpful advice, and I like it because it covers a lot of the fundamentals of commercial real estate investing.

The fact that the sellers sound motivated is great for you (as it is in all investing).  The lack of offers is a bit concerning, but that is probably due to the fact that it is a single tenant property so there is less room for forced appreciation and more concentrated risk.  The fact that you could be an owner-occupant as a fall-back is a great option though, so if the numbers work out you should consider it.

I'd lean toward the second couple, but I use a score sheet that would help me see the stronger applicant.  Not having an high enough (or any) income source is a big negative, although she may end up get alimony to bridge the gap.  Paying up front makes me nervous too, is there any chance this is a story and they are really drug dealers etc?  They are likely offering because they can't find a place to live.  The second applicant feels like less of a risk and a possible longer term tenant.  If their three jobs have been held for a year or more I would probably go with them.

@Georgee Gilbert, one more thing has occurred to me.  It has been my experience that recently divorced women tend to be pretty needy on things in rentals.  I do not mean to sound sexist, but most of the time it is the guys who tighten up the loose screw or fix the garbage disposal when it locks up.  There might be more requests for maintenance issues like loose hinges or sticky door knobs.  You might see if your impressions from talking to them help in this possible regard.

Rotfl 😂!  Yeap, I see it already just from talking to them. They made some request that made me raise an eyebrow 🙄   I think you called it. 

@Georgee Gilbert, I would see what the past landlords said about them and their references.  If you are undecided based on income maybe that will help.  It is hard to give advice without meeting either of them.  Either way it is nice to have choices.  Good luck.

Yes, that's the plan for the couple but the two roommates are currently in homes they were/are buying with their spouses they are divorcing. So they don't have past landlords, just mortgages.  Thanks Jerry!

 This assumes she signed a buyer rep agreement with the original agent?  If the original agent showed the property but contributed nothing else and had no buyer rep agreement in place, one could legally argue she was not the procuring cause at this point in time - this is typically on a case by case basis.

Georgee, your best course of action is the one you’re taking.  Be transparent.  Then, get a commercial broker for any further commercial transactions.  Residential agents usually aren’t very well versed in commercial -  it’s a whole different beast.

I have not signed any agreements with anyone. I have only talked to the Lead agent over the phone who has "assigned" one of her agents to me (without me knowing). The assigned agent is the agent that I viewed the commercial property with. Tmw I will talk with the lead agent. If I don't like what I hear maybe I will make a deal to do my next residential property with her. 

 Commercial agent - no brainer.  Residential agents are generally not trained on mixed use and storefront.