PARTNERSHIP COMMERCIAL BUILDING INVESTMENT W/ 1 PARTNER LEASING.
I will be partnering with 2 others investing in a commercial building with 4 leasable spaces. This is primarily a passive investment but want to cover all my bases. One of the partners will be leasing a space for a reduced rate for his existing business. He has mentioned subleasing some of his space for extra income. Recently he has become more aggressive about the subleasing of his space while he continues to run his business simultaneously. Myself and other partner want to put something in his lease limiting the sublease income he can take before his rent increases.
We are all new to this so any feedback and suggestions from similar situations or experienced investors would be much appreciated. We are coming down to the wire on this and need to get a contract together.
Thank You!
Most Popular Reply
#3 Commercial Real Estate Investing Contributor
- Attorney
- Dallas, TX
- 2,302
- Votes |
- 5,426
- Posts
#3 Commercial Real Estate Investing Contributor
- Attorney
- Dallas, TX
Is this soliciting for a security or active JV? I'm not letting any partner lease below market rates. Post some numbers, but I wouldn't let one partner earn more on subleasing, period.