The Lease Can Prevent Your Transaction from Closing

Get your lease ready before you sell! Instruct your seller to start thinking about the future at lease renewal time.

Get your lease ready before you sell! Instruct your seller to start thinking about the future at lease renewal time.

Over 80% of the return you will make on your business will come when you sell. Do not let your landlord oversee your transaction.

The time to negotiate is when you are leasing or renewing a lease. Keep these things in mind at the time of renewal. At other times you are bound by the terms of your lease.

3 things you can do when negotiating a new lease.

1. Make sure the lease is freely assignable. You do not want to go to the landlord for approval to sell. This can kill a deal and all future deals.

2. Build defined renewal options into the lease. A buyer using SBA financing will need a lease agreement with a term or options as long as the loan term. This is typically 10 years.

3. Do not personally guarantee the lease. The personal guarantee puts the tenant’s own assets on the line should their business not be able to pay the rent or other lease obligations.

Preparing your Buyer for discussions with the landlord:

AND DON’T FORGET YOUR COMMISION!!!

As a Licensed Real Estate Agent, you have just negotiated a real estate lease. This is standard practice. Don’t leave money on the table!