Last weekend I had pre-paid to be with one of my mastermind business groups to be in Costa Rica, however I ended up in Costa Mesa.Fixer Jay Decima  held what may have been his last (3) day seminar and I wasn't going to miss this.

They all operate the same.Bucket 1 is the down payment Bucket 2 is the closing costs Bucket 3 is the escrow/prepaids for taxes and insurance The first bucket is your required minimum investment/“skin in the loan”.

However, considering the cashflow I had received plus the overly generous prepaid city tax account that the previous sellers left me, I was about breakeven.

Use an attorney for the lease or sign up with a prepaid legal service like LegalShield for a lease review.

There will also be a loan documentation fee of $300 due at closing.Prepayment Fee: During the Permanent Period, any portion of the Loan which is prepaid will be subject to a prepayment penalty as calculated below: During first year of loan term 5% During second year of loan term 4% During third year of loan term 3% During fourth year of loan term 2% During the fifth year of loan term 1% Please note the prepayment penalty will not be enforced if the property is sold through an arms length contract.Loan Cost: The cost of the Loan, including, but not limited to, insurance, document preparation, attorney fees and filing fees, will be borne by the BorrowerHazard Insurance: Required on all insurable collateral. 

During lease negotiations a prospective commercial tenant has suggested that in year 2 ( two ) they would be willing to prepay the full year but would like a discount for doing so.

What is the industry norm, as far a...

I believe the other thing that would require the use of the accrual method would be prepaid insurance premiums or other expenses which are not used up within 12 months.

I also recommend you have your buyer bring a 1 year pre-paid insurance policy to the closing table which would replace the existing insurance.

To "protect the tenants", the maximum deposit amount a landlord can charge is two months of rent where a prepaid rent is considered deposit.

Most properties are using prepaid cards for laundry, leasing / or lease to own, machines from laundry company and then the upkeep is their problem.