All Forum Posts by: Khaled Seirafi

Hey @Joel Owens and @Martin Z.. Thanks for your initial replies.

So this potential tenant has a number of similar businesses in nearby areas and has been in his industry since the mid 90's. Thing is, two of his businesses operate under his personal name and the other two are under a corporation. He plans on opening the new business in our space under his personal name and not under the corporation. Also, he gave me a personal tax return after I requested it. But, should I also ask for the tax returns for his corporation? 

Hi all,

I have a commercial tenant in my mixed-use property who's selling his business. What sorts of ratios should I require for income vs expenses on the potential assignee's financials? And in general, what other items do you recommend I look at. I know that I'll be looking at gross and net income, expenses, and their taxes/insurance over the past 5 years. Just want to get some advice from someone who's done this before. 

Hi all, 

There was a leak coming from right beneath the bathroom at a condo I own and it was affecting the unit below. I had a plumber fix the problem, but he had to cut a hole into the ceiling of the condo unit below mine. 

The owner of the bottom unit had a professional fix the hole in her ceiling and reached out to have me reimburse her, which I did. But for future reference, do I have the right to pick the professional doing the work since I was going to be the one paying for it? 

Also, do you think the HOA insurance will cover this?

@Sean Murray I haven't contacted the new buyer yet. According to the current tenant however, the new buyer will use the space for the same kind of business. Also, I was told that they also own several business of the same kind in the area. 

@Jeff B. The lease does contain a clause that allows for assignment and subletting. When drafting the lease, I made sure to include such a clause. 

@Sean Murray @Jeff B.

Also, should there be any attention paid to the details of the business sale itself? Transfer of merchandise, etc. 

@Sean Murray The lease does have an assignment/subletting clause. I haven't spoken with the new buyer yet. But I don't think we'd agree to a new lease so he would have to assume the new one. 

@Jeff B. I'm very happy with the current lease. By guaranteeing the lease, the current tenant ensures that all his obligations are met until the new tenant moves in? Also what about the background check? Would it be any different than a residential tenant background check?

Hi there,

One of our commercial tenants (property is in California) wants to sell his business and retire. We renewed his lease earlier this year with the knowledge that he might sell his business soon.

What process would you experienced BiggerPocketers recommend to do a commercial lease assignment to a transferee? By the way, he has a buyer for his business lined up who owns several businesses of the same kind. 

@Eric Robert My PM was able to handle the eviction after leaving a few notices. We would have worked our way towards getting the Sheriff involved, but we didn't need to resort to that thankfully. 

Hi all,

What is the average rate for commercial RE in the Bay Area? I was given a rate of 5% by a trusted agent. Does that seem fair?

Hi all,

I recently started learning a bit about auctioning real estate. I'm curious to learn from the more seasoned investors on here what are the pros and cons of selling via auction as opposed to listing with a real estate agent.

Thanks!