Probably around 3:00pm tomorrow. Will update in a bit
I can do that.
Given the financial strategizing elsewhere, I’m looking for input on what we’ll be talking about on the call with this person today.
My intent is to sleuth out what the owner intends to do with the property, how bad a position they’re in, and if they would see selling us a share of the property (through TIC or condominiums) for $1M (paid over 5 years) is a better investment than trying to rent it out to and subsequently evict for non-payment a long series of failing yoga centers, startups, or god knows what else during this upcoming recession. I hope they understand what a carrying cost is and how we can eliminate that risk through a very long-term tenancy.
Does that sound reasonable?
It does and I agree with the general plan of action you have outlined. Despite the obviously greater financial value of your proposal - I expect a lot of push back on the $7k rent.
Remember: “bitcoin investor” = short-term > long term.
While I would like to push for a much lower rent - keep in mind that $12k is the market rate for the gym alone - as demonstrated by a current tenant paying that amount. While that tenant is currently going under, they have confirmed that someone out there is willing to pay $12k for the space.
Let’s push for as low as we can get - but not lose the deal over it.
Right. Lets not mention any specifics about rent yet then, and start by seeing if they’re receptive to “less than $12k/mo” in exchange for long term profit. $12k makes sense for a gym, as the gym is unlikely to have any interest in improving the building’s value as a whole. We’re very different and extremely interested in making the building amazing, because building infrastructure is literally our whole purpose. I’m preaching to the choir at this point, I feel. :]
Just heard from RE Agent. Might have a conflict this afternoon - might have to move the call to tomorrow (4/17/19) around the same time. Will update when I hear something.
Also I particularity like your ‘long series of failing yoga centers’ line. Given his current tenant crisis, this would be good motivation to favor a long term deal.
Also there are tax benefits to being paid for your real estate over time instead of in lump sum.
Did this call happen yesterday or is it happened ing today? I’m happy to join in if needed. I will be on a dog walk tho
Yes the call happened! And with interesting results. The RE agent put together a draft of some the terms we discussed here.
This is still a tentative deal as it depends on the current tenant (Ascend Body) being kicked out in the next 3/4 months. From what I hear - they are consistently falling behind on rent, and gyms are seldom stable tenants.
Please read and offer comments/suggestions - but keep in mind that these are draft terms. The owner has not signed off on them yet.