All Forum Posts by: Georgee Gilbert

B working class I would never go below 650. I expect my tenants to be financially responsible regardless of their income level. Credit score should not be expected to mirror a tenants income level. Setting low standards for your tenants is only setting yourself up for failure by increasing your risk threshold.

Although my minimum requirement is 650 the majority of my tenants are well above 700, many over 800.

I care less about my tenants income level than I do about their money management history. The lower a applicants credit score the higher potential risk a landlord exposes themselves to.

Credit score is obviously only one factor and some with scores over 650 are still a high risk based on their credit to debt ratio. I have reject applicants that have good scores that are living at their maximum credit limit.

What type of commercial property? It ranges from free standing stores large and small (for supermarkets to dry cleaners), small strips with several stores, small to large office buildings, mixed use, like a property with stores downstairs and apartments upstairs.

If your just talking stores, I looked at a number of single empty ones and you'll have to figure out why they're empty. Is it because people are going to newer strips nearby? What helped me was I was also looking for laundromats to buy, working with a store broker whose also a commercial realtor. One store, rented to a laundromat didn't do all that well because of traffic patterns, It was just awkward to drive to.

I was looking at a small strip with three stores, all rented, and one to a restaurant. My wife was in city planning, and knew the head of city planning whom she used to car pool with. Decided to drop in and pay him a visit, and we spoke about looking at a strip in town. He knew right away which one it is and asked if the seller mentioned anything about the new rules for providing parking depending on the number of seats in the restaurant. We answered "no".  He said they let the current strip landlord and restaurant tenant slide, but the new owners will have to pave the empty lot behind the strip to provide more parking. The town already spoke to the commercial property owner next store about an easement to get in and out for the additional parking. The sellers mentioned they knew nothing about it.

For stores rented to dry cleaners, are there any contamination issues which greatly diminishes the value and imposes liabilities for current and past owners?

There are insurance issues. My dad owned a mixed use properties, and commercial insurance varied greatly, so if he rented the store as an office, the insurance on it could be five time greater if it was rented to a restaurant.

These are just a few examples. You can do very well with commercial but there's a lot more issues to look into. 

Tell us more about what you are wanting to do? It would help us answer your questions.