I'll let you know as I have two in current bankrupcty and possible one more coming.I think you just have to really know your numbers and then figure out what your perception of "lowball" is.

I have come across many sophisticated tenants (and potential tenants) that knew the laws very well.

Structuring a transaction in a manner where you the sophisticated investor are setting the buyer up for failure is unethical.

I think the problems are that (1) most consumers would not understand the product, (2) the public perception of the big, evil investment bank trying to seduce the public into any swap contract could be bad, and (3) psychologically it would be tough for a consumer to start writing checks on Day 1 of the transaction to the big, evil investment bank for the delta between the variable rate and the presumably higher fixed rate, never really knowing (or understanding?)

As MikeOH stated tenants have very short memories... and their perception of the value of their services will be twice the amount of similar services... and the thing is, when you are standing in front of a judge, you loose everytime.

Please correct me if I am wrong in my perception of this industry.

The general distinction is the level of sophistication and what they charge.

We have all been too well educated on the 50% rule, the 2% rule, the opportunities in the Mid-West and Texas, etc. so we will be looking for bargains.If you find a less sophisticated investor who underestimates the expense of having a property, you could get a pretty good price for it.

Is your target tenant likely to have only a month to month mind or will they be a little more financially sophisticated?

This will help with both Buyers and Sellers perception.2) Advertising in some magazines that show only luxury.