Is The Master Lease Option Possible In This Market?

8 Replies

@Kyle Ransom up-trending markets are the best for master lease option type of transaction. You get to lock a price, step in and improve the property and then buy at the locked price.

That said, it's up to you to decide if the market you're buying at is an up-trending market or not. There are multiple markets in the country I'd say are at the top of slightly over the top and would be a risk for such a transaction. 

On the other hand, A LOT depends on your purchase price and your level of efficiency in operations. What could be risky of one operator could be safe for another...

Hello @Kyle Ransom ,

No question Master lease options can work in any market. Especially for properties that will have trouble qualifying for any bank, agency or bridge financing.

You should check out Peter Harris's information on Master Leases:

website,

https://www.commercialpropertyadvisors.com/peter-h...

Youtube,

https://www.youtube.com/watch?v=yLgtOk48vkQ

Attended a seminar by him earlier this year and it was spectacular!

@Kyle Ransom I actually was in the middle of a property where the seller offered a master lease. However the final buy price was not very favorable. So yes it is possible but make sure the terms and market conditions are right

Absolutely! I just did a seller financed deal on a 120 unit. It was not a master lease, but similar concept. The key to getting one done is to ask the seller. Most people never ask.