All Forum Posts by: John Roberts

Quote from @Michael Wooldridge:

Quote from @John Roberts:

Quote from @Cason Acor:

So have you signed your lease renewal yet, or no? No reasonable person would pay more than the appraised value for a property, whether they run a business in the building or not. Your landlord’s logic is incorrect. Especially if you have to get a loan to buy the building. No lender will give you money over the appraised value, regardless of what your contract price is. 

 Hi Cason,  we have not signed the lease renewal yet.  I think he was holding out hope that we would purchase the building.  I told him that his logic was flawed and that a bank wouldn't loan for more than the appraised value.  He suggested we get a small business loan to cover the difference.  And he is a CPA.  I just don't get it....

 I hate to say this but it sounds like his logic has to do with the fact that he knows you don’t have another option in town. Have you researched hard to see if there are any other options to move to? 

Because if there really isn’t the alternative isn’t a great option. Which is to see if you can tempt him with some type of premium (i.e. 10% over appraisal) which means you need cash on hand. Not ideal. Or a true relocation of business. 

Sorry to hear this is happening to you. I’d look hard at the market to see if there are really no other options sounds like he is trying to force the issue. 

Hi Michael,

unfortunately, there are no other viable options for our restaurant.  There is an empty building and the owner said he would build it out if we signed a 5-year lease, but it has absolutely NO parking.  This would work if we were strictly take-out, but there is room for about 5 vehicles to park.

I don't trust our new landlord at all either.  He will only speak with my wife and he literally ran out of the store when she told him that she is going in the back to get me.  He told her that we are crazy for paying rent on the place for the next 20 years when the rent payment is about the same as buying it (which it isn't).  This guy thinks he knows it all and will not negotiate on price.  We asked him his bottom dollar and he said this was it.  

Quote from @Cason Acor:

So have you signed your lease renewal yet, or no? No reasonable person would pay more than the appraised value for a property, whether they run a business in the building or not. Your landlord’s logic is incorrect. Especially if you have to get a loan to buy the building. No lender will give you money over the appraised value, regardless of what your contract price is. 

 Hi Cason,  we have not signed the lease renewal yet.  I think he was holding out hope that we would purchase the building.  I told him that his logic was flawed and that a bank wouldn't loan for more than the appraised value.  He suggested we get a small business loan to cover the difference.  And he is a CPA.  I just don't get it....

My wife and I own a restaurant and we lease the building.  Our landlord just inherited the building from his dad that just recently passed away and he really doesn't want to be a landlord.  We are in a very small rural town and there are not any other options if we decide (or are forced) to leave.

Our landlord came to us last week and let us know that he wants to sell our building. Our lease is up for renewal and he was wanting to know if we would be interested in purchasing it. We said sure, how much are you thinking? He comes back with an asking price that is double the appraised value of the building. I asked why so high, and he said that a 'normal' person would only want to pay the appraised value, but since we have a revenue-producing business, we should pay more. His logic was that if we continue to lease at our current rate, we would pay more in 20 years' time versus just buying the building. I told him I am almost 50 and I am not sure I will be around in 20 years to realize the great savings that he is talking about.

Am I missing something? Should I pay more than the appraised value simply because my business is located in this building? He will eventually sell it to someone else, which is also a concern of ours. He put a clause in the new lease for a 60-day notice.  Meaning if he gets the building under contract for sale, he (or the new owner) can give us a 60-day notice to vacate the building.  Can we do anything now to protect ourselves from our next landlord?

Any and all advice is needed and certainly welcomed!

Thanks.

Hi,

I am new to investing and I am about to purchase my first property to flip.  I have my own renovation crew that I will be paying hourly along with a bonus that will be based on deadlines met and profit.   I am just the investor and will not be onsite most of the time.  I have a foreman that has worked in construction doing remodels for the last 20+ years.  I am looking for software that will help me keep track of man hours, expenses, and anything else that may come up.  I want to keep track of man hours on the job (I want them to clock in/out when at the job site).  I also want to keep track of expenses for each property.  What do you use and/or recommend that will help with this?

Thanks in advance.

John