All Forum Posts by: Jon Klaus

Hi Debbie, welcome to BP. I work out of Garland and just started professionally in the past few months. But first I came here and read/learned a lot. I believe DFW opportunites are great right now.

"The lease and the option are separate agreements. I would not recommend referring to one in the other."

If they break the lease I assume the option is no longer valid? But don't you have to refer to the lease in the option in order for the default to apply to the option as well?

Tony and Mike,what rent price range are you using linoleum tiles and commercial padless carpet in? Or phrased another way, do you stop using the low end durable materials when you are flooring your higher end units?

We are using lease/options.

I'm asking for a large security deposit (2-5% of value) that can be used toward purchase if they exercise the purchase option. I'm also pricing the rent at $50-75 below market and asking the tenants to do minor maintenance.

Yes, this disqualifies many prospects, but helps ensure that I get better and stronger tenants.

With the option payment being non-refundable, can't they argue for equitable interest if things go south? How do you handle that?

Christopher, do you mind saying which bank that is?

"Does any LL's have Commercial property? I have 2 units in a mixed use building and 1 recently became available not really big surprise to me with this economic crisis mess. But I have found a potential Tenant and want to screen them properly. I have secured a deposit as of yesterday with them and we are scheduled to sign a lease tomorrow I am trying to lock this up fast because I do not want to loose them. My commercial rental application is pretty lame I found it on the Internet and will be revising it. I know I need the typical stuff - personal & business reference, copy of drivers license, present living address, credit report etc. but am I missing anything?"

Get a Dun & Bradstreet report on them. It's kind of a credit report for businesses.

Also try to get a personal guarantee(s) along with the corporate guarantee. Get business credit references and past landlord references.

There's a lot of good info here. I am working on land/home deals and haven't worked in parks, but what you say makes good sense.

"A park manger is 10 times a bigger asset than Any Lonnie, Deals.

I will not touch his deals, I have before I will never again."

Michael, woulld you elaborate on your comments? Would you consider Lonnie deals if you owned the land/park?

Why do you want to buy in Las Vegas? I suspect it will be at least several months before that market turns up.