All Forum Posts by: Priyanshu Adathakkar

Hi Rafiq, yes it'll!

LOI is non binding and is not a contract, it just lays out the conditions under which you are willing to enter into a contract. On several occasions, I have signed multiple LOIs and walked away from all.

Personal guarantees are pretty common these days, they (banks) do not want to go after 28 people in case of default, they want one person responsible for the loan. Even if you form an LLC and take a corporate loan they will ask for a personal guarantee. The only way you can avoid this is to seek out a lender that would do a non-recourse loan but those are very difficult to come by these days.

@Hipolito Mendez Yes Ohio is a good place to invest. I can help you with turnkey investments in Columbus, OH it is a great college town with a good demand for rentals because of the transient population. 

@Jesse E. are you looking to only invest in MN? 

@Jagpreet Singh have you considered Columbus Ohio? among the top rental markets in the country. $40,000 down can get you a good property in A class area with good rents. 

I signed up 3 years back and that is what they quoted. Not sure if there is a different rate for a different market but that don't make sense as we have access to all listings maybe this rate is for licensed agents?

Hi Robert,

How is the rent structured - NNN or MG?

Does the space have a hood and grease trap? - If not offer TI specific to hood and grease trap and ensure this becomes part of the space (tenant leaves it behind when they leave).

Are you providing a fresh coat of paint or any floor treatments? If yes make sure you count this in your TI allowance. 

There is no standard formula to calculate TI allowance, however, calculate your effective rent/ year and see how much you are willing to give up from that. Here is how you would calculate your effective rent:

Year 1 (11 months) $25.00 x 5,000 sf x (11 / 12) = $114,583

Year 2 (12 months) $25.50 x 5,000 sf = $127,500

Year 3 (12 months) $26.00 x 5,000 sf = $130,000

Total Consideration = $372,083

Effective Rent $372,083 / 5,000 sf / 3 years = $24.81 / sf / year 

If you have not yet agreed upon a rent, find out how much TI the tenant is expecting and amortize that into your base rent here is an example:

@Matthew Olszak screening period is the work around. Is your leasing criteria first come first serve or is it one from a pool? If it is first come first serve, unless you have an iron clad reason to reject an application you have to follow your own rule and admit the first one that applies. Landlords have a right to select a tenant as long as they do not discriminate. If you have an application period and you get 4 applications where all 4 are qualified, you have every right to select one you like the best and reject the rest.

Hope that makes sense.

@Matthew Olszak as a fellow real estate professional you should also realize that we need to be extra careful as not only are there monetary implications but it could even jeopardize our careers.