All Forum Posts by: Account Closed

Decided to cancel the deal. Not comfortable with the information we were provided about the company as well as a few other issues that have come up.

As always I thank you for the input Joel.

They are at a B2 (or B) credit rating which is what has us worried. Just from observation, there's quite a bit of commercial vacancies in the area, but they are all small businesses/offices save for one large vacancy in the adjacent shopping center, a Party City it used to be. 

Will check the rent/sq. ft. details and get back to you.

Hi @Joel Owens!

We're currently in due diligence however we are on the fence. It is a national brand, parent corporate, yet they are in a tremendous amount of debt (I believe many of the big name gyms are in a lot of debt).

Percentage of income is very heavily skewed towards memberships in comparison to the other inflows and memberships last an average to two years. 

Anyone here invest in health clubs/gyms and/or is familiar with the industry from a real estate investing standpoint? I've got loads of questions for you...

Just going over my lease and I realized I made a mistake on the section that addresses late fees. I have both a percentage and a dollar amount written that is to be charged but the dollar amount doesn't match the percentage (lease was used for a different property with a different monthly rent).

Which late fee amount (if any) can I charge in this case?

@Marcia Maynard I agree with you, however, based on research that I've done and speaking with other landlords, it seems as if it's not worth the risk. 

I'm open to letting them use it, I just don't know if it's advisable, regardless of whether or not I teach them how to properly use it.

@Dan Weber That is what I'm trying to do, I would have to issue a lease addendum. Although they seem to be hell bent on using this fireplace so I don't know if they'd be supportive of signing such terms.

For the first time in a decade, I have a tenant that wants to use the fireplace in one of my rental properties (SFH).

It is gas powered so there is no wood burning required, but the fireplace is in need of parts, has never been tested, nor has it been inspected for safe use.

I don't feel comfortable with the prospect of a tenant using a fireplace (wood burning or not) so I was thinking of amending the lease to prohibit the use of the fireplace. Is that possible? 

*The heater for the home works perfectly so the tenants are living comfortably. They are claiming it would be more cost efficient to use a fireplace than a heater (not sure if that's true in their area). 

@Jessica Zolotorofe The seller is an individual. There is an indemnification provision and it does state that it will survive closing, but we are still negotiating terms and haven't signed anything other than the LOI.

@Joel Owens According to our agent, the developer is working with the fitness chain in the construction of the property so that it's being built exactly to their specs. Not sure if the developer is working with another developer but the development is massive as the gym is only part of a larger shopping center being built. 

We do have a commercial real estate attorney working with us, but I only get pieces of information from him so whenever I have a question, I usually come here to get answers, although I now realize I tend to leave out important details, sorry!

Phil, to be very specific, I am not the one purchasing the property, my dad is, who has enough experience in RE to answer my questions but I like to come on here regardless because I get many different perspectives from different people. And it doesn't hurt to cross-reference what he tells me with other's opinions on the forum.

Buying a building under construction as well as the land the building sits on, tenant in tow. I'll have to read what the PSA states with respect to the trigger date but if I remember correctly the lease start date is when the tenant fully moves into the building. 

There is a CUP in place and the fitness center is permitted by the zoning and is part of a larger construction project (shopping center).

 We are awaiting construction docs, lease, etc. I'd have to get back to you on who the general contractor is and the details of the work structure.