Updated almost 9 years ago on . Most recent reply
Tenant wants high speed internet
Have a great national tenant. Pays bills on time and takes care of commercial building. They spoke with AT&T and will cost $50k to run service to building. They are willing to pay it but wants added to rent.
If we front the 50k and spread out over 3 yr lease, is it right/fair to charge an interest on top of that?
Thanks for all replies
Most Popular Reply
You're giving them a loan. Simply spreading out the loan principal out over 3 years doesn't make you any money (you'd lose in that scenario). I would keep doing 1 year leases and structure the 50k as a separate loan. Amortize it out for 10/15 year with a balloon, whatever, but I would keep it separate.