I'd at least try to negotiate a reduced payoff.Let us know how this turns out for you.

This is a numbers game, so if you didn't leave any room on your offer, you either have to stand firm, or reduce your profit margin.

Don't reduce your rent by too much.  

This reduces another costs.

Largely, it reduces the cost of forming an LLC for each property.

Do you reduce the risk if you occupy the unpermitted unit?  

We also offered him a deal that if he signed another year lease we would reduce rent to match market rates of $1100.

So, if we were to work together we would focus on locking up your first property and reducing your anxiety.Did I understand your situation correctly?

Further pressure on the Company's liquidity presently exists due to its warehouse lenders effectively reducing, in this environment, their advance rate on new loans made by the Company.Based on the foregoing, the Company at present is unable to borrow on its credit facilities and was unable to fund its lending obligations yesterday of approximately $300 million.

I was suggesting that he should look at the options, and see what he could do to reduce the loss should he need to take one.