All Forum Posts by: Mike Giudici

They should all pay. If they don't, they are in default of the lease. Do you have concerns with the end of the yer coming up?

A few things to note:

1. Unless you're dealing with larger national or corporate tenants, there is a pretty good chance the Tenants will need a lot of hand holding as you explain the reconciliation process and any monies owed, etc. be prepared for a pushback, especially if they owe money.

2. if the property is well managed, the reconciliation should be a breeze and most Tenants should not owe or receive credits of more than a few hundred dollars. Budgeting and completely understanding all facets of a Tenants lease are important steps to preparing an accurate estimate each year.

3. If you deal with a larger or national Tenant, be prepared for an occasional 3rd party audit (if allowed under the lease). Keep good records and make sure all invoices are billed correctly and have clear descriptions and locations of all services. If you are audited, and they find large discrepancies, the Tenant will expect answers and an immediate credit, and in some circumstances make the Landlord pay for the audit. Not to mention subject further CAM billings to additional scrutiny. 

CAM reconciliations can be difficult for both Landlords and Tenants at times. A small 10,000 SF single use NNN property would be very simple, whereas a large class A 1,000,000 SF multi-tenant high rise tower would be quite complex.

Buy a vacant warehouse, lease it to the company on a full NNN personally guaranteed lease then sell it to someone else. Instant value!

Hire someone to come professionally measure and draw the space. That way you will have them in CAD and PDFS format. You want to make sure the drawings are as accurate as possible and that you capture every inch of rentable space. This is a (very) small investment that pays for it self time and time again.

Do a no-nonsense deal with a broker and close smoothly and quickly. Let him/her know you are hungry for more. If they know you mean business and can see the deal through to the closing table, they will be more than happy to send you listings as soon as they get them.

The best clients get the first looks at these deals.

How do you send private messages? I can put you in touch with the real estate department at a very large national day care provider. They may be interested in opening a location in your area if they don't have one already.

Who was the previous Tenant?

Asset management fees are typically around 3%.

I agree that t-mobile is not the most coveted  provider. However, if it were my shopping center, I would choose t-mobile over boost.

@William Jenkins  Most of ours are 20 year leases and have equally long option periods.

Thanks for the explanation on the buyouts. I had assumed that they were just fly by night companies looking for Landlords  bad financial shape. It seems that while that may be the case with some, other offers may be more legitimate. Have you heard of Tower Point Capital?

Buy the property using an LLC and keep the building assets seperate from the companies assets, unless you have a tax reason to purchase using the same entity.

@John Mitchell T-Mobile is a tier one provider. They have their own network, strong customer base and are not likely going away anytime soon.

Boost Mobile is a tier two provider and a subsidiary of Sprint. They rely on other networks for connectivity have a sub-par customer base (think pre-paid phone plans), and could have their business negatively impacted by a number of variables that tier one providers don't have to even think about.

Compared to Boost Mobile, a T-mobile would add value to the tenant mix at a shopping center, could pull other potential Tenants to the center (think synergies) and would likely look better to a prospective buyer.

Those are just my thoughts.