All Forum Posts by: Ash Patel

I have a $400k retail building under contract in Ohio and the seller informed my realtor that he wants to back out because of family politics. This was a standard residential contract, all cash and as is.  I read through the forums and couldn't find examples of litigation in this type of case.  I am willing to spend the money to pursue litigation.  The closing is scheduled in 7 days.  Any advice or experience?

Make it a positive situation.  Talk about how great the new landlord is and send an email intro.  Talk about why you are selling in a positive way and reassure the tenant that they will not lose their lease.  As a new landlord, I always make some improvements to landscaping, lighting and signage so tenants are reassured that I am not an absentee landlord.

Thank you Wendy!  What a one sided bill!  

I have been with the same local bank for over 10 years.  20% down, 4.5% 10yr fixed, either 20 or 25 year amt.  The same would go for a refi.  I believe it pays to stay loyal to a small local lender.  These are all commercial buildings.

If you are having issues with attracting new tenants due to high cam charges, cap the cam for them.

Look up Priya Thomas in Cincinnati


https://www.facebook.com/priya.thomas.5682?__tn__=%2CdC-R-R&eid=ARCzpnlvi2YMSV7xkXhiGxM-HvsUp0B8pSV9PNG9dFsJkmERCfZnJA3evcUuBU7S--YOD2hB2u3DwXce&hc_ref=ARQU4aZpiWl118JNDIonoFHjhcsl8A_qgVqFfVa4Bbb0wx9AknMD6eP3ao7Ze4g-itk&fref=nf

A lot of good points.  I am not affiliated with any Syndicators but have invested with one in particular since 2016.  I have been involved in several deals since that time and two of them have sold.  The first one did not have the option to 1031.  Just prior to the close of the second deal, those investors that chose to 1031 could roll their winnings into another deal that was offered by that syndicator.  

I am a full time RE Professional so my passive losses do offset other income, including that of my spouse.  Being a REP is a game changer for high tax bracketed individuals.  The huge negative K1’s received from syndications are also a massive benefit.  Of course there is depreciation recapture and capital gains upon sale if you don’t 1031.  One option is to stagger your syndication investments so your cap gains are offset by the cost seg/bonus depreciation etc. of newer investments.  Good luck!  

I have two salons as tenants.  Both are in multi-tenant buildings and both are some of my best tenants.  They care more than anyone else about the appearance of their space and the building.  One of them occupies a floor in an office building and they take it upon themselves to add flowers and potted plants all around the building and maintain them.  The smell clause should be in your lease.  The salon lofts concept is very lucrative.  I would not hesitate at all to rent to a salon.

@Joel Owens, THANK YOU, THANK YOU!  I will update this thread after our meeting and will use all of your points.  Did not know you were in the food business prior.  The location is in a very desirable walkable part of town with great parking.  Street level, great sight lines.  Unfortunately this is being run as a hobby instead of a business.  I think a turnaround specialist is 100% in order.

I made sure the personal guarantee was legit. Not only do I have a clause in the lease, I have a separate two page personal guarantee that reinforces the fact that it is an unconditional guarantee.  Of course, if we cross that bridge, a number of attorney's will get involved.  Again, just wondering if anyone has gone through the process.  @John Lenhart, I thought about an equity position, but I don't want to be part of a failing business nor do I want to buy them more time.