All Forum Posts by: John McKee

Yes they are local and one of them I’ve done business with for years. It’s time to step up my game and work with some mortgage brokers that have a better network than I. 

The most common question I get it is does it have a hood and what size is it.  The other one would be a liquor license.

I spoke to 3 lenders that want 40-50% down range on a mom and pop bakery.  Yes they are new, but have a 10 year lease with personal guarantee.  It's a class A location.  That's too much to put down as it takes away the leverage of real estate. Is this typical?

Yea I think your right on the value add stuff. If there is valid add the broker will invest in it themselves or with partners

Just spoke with two banks about a NNN mom and pop deli. It's in a class A urban location with 5 years left on lease. One bank said 65% Ltv and the other 55%. Too much to put down! What are you guys seeing?

You can advertise it in loopnet

What town are you in?

Amy,  I know how you feel because I have the same issues, and believe it or not it happens on occasion with STNL as well.  Corporations/People don't read their leases!  However I have been compassionate in some situations where I see the long term benefit or potential liability if something doesn't get fixed.  The benefit of the mom and pop operation is that they have a lot invested in that location, and in most cases build their livelihood around that one location.  They are almost institutionalized in a sense so having them pay for repairs or raising your CAM fees should not be a big deal.  The likely hood of them going anywhere is slim.  If they really struggle then the right thing to do is go out of business anyway.  You are in the right and these tenants are going to have to deal with it.  You are lucky to have this strip mall because it gives you diversification and hopefully 1 or 2 vacant tenants won't be a big deal depending on the size of strip.

Good feedback here.  I’m only searching on my own because I have the time but I have let every broker know my credentials/finances to let them know I’m serious. Having said that I realize it’s a total time suck for a broker (res or commercial) to spend countless hours on the internet for a buyer.  

I get this a lot as well. I tell the tenants to go back and read their lease as it is pretty clear. My newer leases points out Hvac, glass, and door maintenance is on them as these are some of the bigger wear and tear items that causes tenants confusion.