Is this lease worth me signing?

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318
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2014/05/28 19:46:56 (permalink)

Is this lease worth me signing?

Hey Folks,
 
Found a place today with the right rent and all I have to do is change the sign and bring in my equipment.  The thing is, the landlord wants me to pay $500 to have the leased drafted.  If I sign, I get $250 back - if not, I lose the $500.  I feel funny about paying to have a lease drafted that I cant see first and lose money on if I don't sign.  I guess the question is, has anybody else seen or heard of this?  Should I run as fast as possible and just wait to find a better deal?  Would you go for it?  
 
I know I am not thinking as clear as normal in my haste so I really could use your help on this one.  Like most people, I already have a good idea of what I should do, but just want other opinions.  Of course he says their are two other people looking at it and I don't want to miss out again, but don't want to be tricked as well just because I was too excited and ready to leave my job to think clear or ask for help.
 
Either way, thanks for everything Roadfood!  You have been there in more ways than I could ever say.
 
James
#1

13 Replies Related Threads

    Midnights
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    Re:Is this lease worth me signing? 2014/05/28 20:56:18 (permalink)
    Counter that you would be willing to let your lawyer draft the lease.
    #2
    Foodbme
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    Re:Is this lease worth me signing? 2014/05/28 21:20:19 (permalink)
    As "they" say, I am not a lawyer and this is not legal advice.
    Any transaction I've been involved in the Landlord has been responsible for drawing up the lease.
    1st question is, do you want the place?
    Have you discussed ALL the terms of the lease with the landlord and if so, do you plan on signing it?
    Sounds like the LL is just trying to protect himself against you backing out.
    Most leases are just "Boilerplate" with addendums added for any contingencies you and the LL want to add.
    I would offer to give him $250.00 and if you don't sign, he keeps it.
    If you do sign, he refunds it to you or applies it to the 1st months rent. 
    Whatever you do, have an attorney who handles real estate transactions review it for you BEFORE you sign.
    #3
    318
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    Re:Is this lease worth me signing? 2014/05/28 21:41:20 (permalink)
    Thank you two!
     
    I do want the place!  Another thing that came up while doing more homework is a non compete clause so I'm sure I haven't discussed all that needs to be discussed; I just didn't want to pass up another place because I wasn't "ready".  I could make the place work without a problem.  Best of both worlds, plenty of commercial ans residential.  
     
    I am not going to make a move today, but if he still has the place by Monday, I am going to talk with him again and see if he is willing to meet me in the middle.  I can understand the wanting to cover himself, but part of me thinks since he has 6 spaces, he would have sort of a standard lease made for him and his spaces to not have to pay an attorney each time he leases a space.  I couldn't imagine the landlord I rent my home from saying pay me money to see the lease and if you sign it i will give you half back.  I can't lie, i have done more work today than in the last few months in terms of preparing to open in a few weeks, contacting the city and deciding to jump because I have been pushed to the edge and there is no more room to procrastinate.  I just don't want my zeal to help me make a stupid decision that I will regret later and all of you can see this from a totally different angel so this is why I am asking.  I want it and can make it work, just don't want to regret the deal later.
    #4
    edwmax
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    Re:Is this lease worth me signing? 2014/05/29 01:09:59 (permalink)
    Never heard of that before.  I think the owner wants a professional drafted lease and you pay for it.  ... Or, he has a lease and wants to make a few extra dollars at your expense.
     
    Counter that he is the one in the business of 'leasing real estate' and the drafting of the lease is his expense; after he presents you with a lease and you have time to review it; you will then sign and pay the deposits and rent due.
     
    Or, as suggested above, have your lawyer draft a lease and present to the land lord.  I wouldn't pay his attorney to draft a lease.
    #5
    chicagostyledog
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    Re:Is this lease worth me signing? 2014/05/29 09:21:24 (permalink)
    Since 2006, Hot Dog University has trained over 800 students. 500 have a cart business and 300 have restaurants. When it comes to leases, everything is negotiable! However, opening a restaurant in an indoor mall or food court is a death sentence for a hot dog stand. Rents are too high, contracted hours are too long, foot traffic is only substantial on weekends, and lots of competition. Independents are always losers over corporate in these ventures. During the week, there is not enough traffic to support a living at any indoor mall or food court. Amazon has hurt mall traffic, substantially. Street exposure to your business, along with ample parking, and good ingress and egress to your location is paramount. We're always searching for a one year lease with two, two year options finding a space that's been built out with the the sink/grease trap and a ventilated hood/fire suppression system.
     
    CSD
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    saps
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    Re:Is this lease worth me signing? 2014/05/29 10:19:05 (permalink)
    First of all, if the guy is a landlord and he has other spaces, then he has a boiler plate lease made up and he is just trying to pull money from you from the get-go.  Personally, that would be a red flag to me that this guy is going to be a pain in the butt going forward.  You would be a fool to pay money to someone who is going to go to his attorney and draft up a lease for you with his requirements.  I would ask him for a copy of a boiler plate lease which you can then give to your attorney and have him review it.  At the very least, if you are going to pay for it, have your attorney draw up the lease, and then submit it to the landlord and his attorney can review it and he can pay his attorney for his time and changes.   If this landlord is as unscrupulous as he sounds, he can make the lease so egregious that you won't sign it and then walk off with your 500.00.  If he is experienced and has simple leases, he probably rarely sends them through an attorney anymore and is just taking your money.  I would be walking the other way.  Sometimes the best deals are the ones that you don't make.  I say this as a landlord who has leased both commercial office and retail space.  I always had plenty of leases on hand and never charged a tenant directly for a lease, and only paid for changes by my attorney.
    How do you know this landlord has two other people looking at the space?  Did he tell you that?  If he's pulling this kind of stuff with the lease, then I doubt he is telling you the truth about the other potential tenants.  Also, you had better know the terms of the lease well, such as the difference between net, triple-net, and gross leases.  Don't go the route without an attorney.  After many years in commercial RE I did some work in residential with someone who I thought was my friend and I could trust, and I skipped my attorney.  I paid dearly.
    #7
    chefbuba
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    Re:Is this lease worth me signing? 2014/05/29 10:51:17 (permalink)
    Like Nancy Pelosi said, "we have to pass the bill the find out what's in it".
    You know what that got us, run for the hills. I have never paid to see a lease.
    #8
    318
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    Re:Is this lease worth me signing? 2014/05/29 11:27:30 (permalink)
    Hey Folks,
     
    I really appreciate all of the responses, you are helping me more than I can express.  I am very happy to have posted here before I took him a check and had more time to think about it.  I don't take it lightly that you would share your experiences with me to save me time and trouble when you don't even know me.  
     
    I was just so excited to finally be able to say - we are open!  I think the biggest part of it was being sick of my job.  I'm leaving there either way so that will take a lot of pressure off.  Not exactly sure what will happen, but then again we never are.  
     
    I am going to call him and tell him I am not willing to pay to see the lease and if he wants to move forward we can, but I will not let excitement turn my brain off again.  I will have an attorney check it as well, no matter who the lease is coming from.  I will continue to do my homework, read old post, develop as needed, and be patient.  
     
    Thank you again Roadfood, you guys are the bestest! 
    James
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    Michael Hoffman
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    Re:Is this lease worth me signing? 2014/05/29 12:03:52 (permalink)
    Good luck James. Isn't this a great place?
    #10
    saps
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    Re:Is this lease worth me signing? 2014/05/29 13:05:15 (permalink)
    318

    Hey Folks,

    I really appreciate all of the responses, you are helping me more than I can express.  I am very happy to have posted here before I took him a check and had more time to think about it.  I don't take it lightly that you would share your experiences with me to save me time and trouble when you don't even know me.  

    I was just so excited to finally be able to say - we are open!  I think the biggest part of it was being sick of my job.  I'm leaving there either way so that will take a lot of pressure off.  Not exactly sure what will happen, but then again we never are.  

    I am going to call him and tell him I am not willing to pay to see the lease and if he wants to move forward we can, but I will not let excitement turn my brain off again.  I will have an attorney check it as well, no matter who the lease is coming from.  I will continue to do my homework, read old post, develop as needed, and be patient.  

    Thank you again Roadfood, you guys are the bestest! 
    James

     
    Be excited but don't be overzealous.  My being overzealous caused me to work less cautiously and it cost me a lot.
     
    Good luck.

    #11
    edwmax
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    Re:Is this lease worth me signing? 2014/05/29 17:11:59 (permalink)
    saps

    318

    Hey Folks,

    I really appreciate all of the responses, you are helping me more than I can express.  I am very happy to have posted here before I took him a check and had more time to think about it.  I don't take it lightly that you would share your experiences with me to save me time and trouble when you don't even know me.  

    I was just so excited to finally be able to say - we are open!  I think the biggest part of it was being sick of my job.  I'm leaving there either way so that will take a lot of pressure off.  Not exactly sure what will happen, but then again we never are.  

    I am going to call him and tell him I am not willing to pay to see the lease and if he wants to move forward we can, but I will not let excitement turn my brain off again.  I will have an attorney check it as well, no matter who the lease is coming from.  I will continue to do my homework, read old post, develop as needed, and be patient.  

    Thank you again Roadfood, you guys are the bestest! 
    James


    Be excited but don't be overzealous.  My being overzealous caused me to work less cautiously and it cost me a lot.

    Good luck.

     
    The cost of an Education!   ... An old Boss of mine would say (when he just screwed someone)   ...  'You in BIG Business now'  ....
    #12
    318
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    Re:Is this lease worth me signing? 2014/05/30 19:17:07 (permalink)
    Good luck James. Isn't this a great place?   
     
    Yes Sir, love this place!  
     
    I decided to give everything a rest for a while.  I took a tirp to relax for a few days and came up with something else that I can do first that will make good money and allow me to do the restaurant later without a lot of the stress.  I still cant wait until I can tell you guys we are open though!
     
    Thanks again to everyone that has helped me on this journey,
    James
    Good luck James. Isn't this a great place?  
    post edited by 318 - 2014/05/30 19:18:32
    #13
    Foodbme
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    Re:Is this lease worth me signing? 2014/05/30 23:55:27 (permalink)
    318
    Good luck James. Isn't this a great place?   
    Yes Sir, love this place!  
    I decided to give everything a rest for a while.  I took a tirp to relax for a few days and came up with something else that I can do first that will make good money and allow me to do the restaurant later without a lot of the stress.  I still cant wait until I can tell you guys we are open though!
    Thanks again to everyone that has helped me on this journey,
    James
    Good luck James. Isn't this a great place?  

    Regardless if or when you get into the Restaurant business, the stress will be there waiting for you. It never goes away in the Restaurant business.

    #14
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